Chris Dodd and the AIG Bonus Loophole

Something is rotten in Washington DC. And Chris Dodd, as well as Obama Treasury officials, have a lot of explaining to do. Here was Dodd on CNN last night, attempting to clarify his role in the insertion of a loophole that allowed for AIG to pay out the bonuses that have sparked populist outrage this week. Watch:



Quite clearly, Dodd distorted the truth in his first interview with CNN. His credibility is further strained when he claims not to remember the specific individuals at the Treasury Department who directed him to modify his amendment to include the bonus loophole. How many people work at Treasury, anyway? It's common knowledge that they are working with a skeleton crew.

I remain ever skeptical over Tim Geithner's oversight and decision-making in this crisis. Dodd's remarks do nothing to lessen such worries. In fact, they may spell trouble for the Connecticut Senator, who is up for re-election in 2010. There's still sorting out to do before we can fully assess what really went wrong with AIG, but as of now a few clouds have formed over Dodd's snow-white mane.