Millions in bonuses were handed out to A.I.G. executives and that decision ticked off taxpayers and lawmakers alike. But after days of back and forth, more information came out about Connecticut State Senator Christopher Dodd's role in the deal and how he received a "bailout" from the Obama Administration.
In a section of the stimulus bill that was supposed to restrict executives from receiving government bailout money, a loophole to allow bonuses for those very executives to receive bonuses found its way into the bill. On Tuesday, Senator Dodd denied any knowledge over that provision. On Wednesday, he admitted he played a part and on Thursday he placed blame elsewhere.
"We wrote it. Our staff did that but the idea came from the administration," said Senator Dodd.
According to the Senator, the administration was concerned about lawsuits that would stem from contractual breaches promising bonuses. The loophole didn't become apparent until last week after A.I.G. used federal bailout money towards more than $160 million in bonuses.
"Had I known at the time that there were any A.I.G bonuses involved, I would have rejected it completely," added Senator Dodd.
But that explanation didn't fly for Connecticut Republicans.
"They tried to race this bill through. No one read it. This kind of haste and ability to not get their story straight is just indicative of the incompetence we're seeing in this administration," said Chris Healy, Connecticut's Republican Party Chairman.
This, of course, is not the first time Senator Dodd has found himself in hot water. There was controversey that surrounded loans he once obtained from Countrywide.
Some believe this latest incident may have an effect on Dodd's re-election.