Dodd Throws Obama Under the Bus

Chris Dodd must be pretty concerned about this chances for re-election next year. He's already been blamed, and rightfully so, for blocking reforms to Fannie Mae and Freddie Mac that led to the banking crisis, and he's also been fingered as they guy who put language in the TARP bailout protecting AIG's much-maligned bonuses.

However, Dodd enjoys his cushy job in D.C. and will do whatever he can to keep it, including throwing the president under the bus:

March 19 (Bloomberg) -- Senate Banking Committee Chairman Christopher Dodd said the Obama administration asked him to insert a provision in last month’s $787 billion economic- stimulus legislation that had the effect of authorizing American International Group Inc.’s bonuses.

Dodd, a Connecticut Democrat, said yesterday he agreed to modify restrictions on executive pay at companies receiving taxpayer assistance to exempt bonuses already agreed upon in contracts. He said he did so without realizing the change would benefit AIG, whose recent $165 million payment to employees has sparked a public furor.

Dodd said he had wanted to limit executive compensation at companies that got money from the government’s financial-rescue fund. AIG has received $173 billion in bailout money. His provision was changed as the stimulus legislation was negotiated between the House and Senate.

“I did not want to make any changes to my original Senate- passed amendment” to the stimulus bill, “but I did so at the request of administration officials, who gave us no indication that this was in any way related to AIG,” Dodd said in a statement released last night. “Let me be clear -- I was completely unaware of these AIG bonuses until I learned of them last week.” He didn’t name the administration officials who made the request.

All this does is throw gasoline on the fire. The press and GOP will now have even more reason to dig further into this mess to try and find the scapegoat. Nobody is going to believe either Dodd or the Obama people.

Big fun.