Dodd says he reluctantly agreed to bonus provision change
After first denying reports of his involvement, Chris Dodd is now saying that he reluctantly softened a provision intended to restrict executive compensation at companies receiving bailout funds at the request of unnamed Treasury Department officials.
Initially, Dodd's provision restricted bonuses for all companies receiving bailout funds. The change created an exemption for bonus contracts -- such as AIG's -- entered into before the legislation took effect.
Dodd's provision did not create a loophole. In fact, it was attached to the stimulus bill and created new restrictions on the usage of TARP funds. Nothing in Dodd's legislation weakened existing law, though the provision didn't go far enough to block the AIG bonuses.
There are discussions going on in NewDealer's and in laughingriver's diaries.
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