In a stunning development, Sen. Christopher Dodd said that Obama administration officials asked him to add language to last month's federal stimulus bill to make sure the controversial AIG bonuses remained in place.Ouch. If this is true, somebody's in deep trouble. So who told Dodd to do this?
Dodd, chairman of the Senate Banking Committee, told CNN that Obama officials wanted the language added to an amendment limiting bonuses that could be paid by companies receiving federal bailout money. He said they were afraid that without it, the government would face numerous lawsuits from employees who were promised bonuses.
On Tuesday, Dodd denied to CNN that he had anything to do with adding the language, which has been used by officials at AIG to justify paying millions of dollars in bonuses to executives after receiving federal money. The nearly $800 billion stimulus bill was approved by Congress in February.Ding ding ding ding! Senator Dodd in the Billiard Room with the Wednesday Night News Dump. Do I win?Dodd told CNN he did not speak to high-ranking administration officials and the change came after his staff spoke with staffers from Treasury. The White House did not immediately respond to CNN's request for comment.
Odds of Timmy The Invisible Boy getting tossed under the bus just went way, way up.
However, this means odds of Plan N just went way, way up too. Obama's going to get zero help on bailouts now from Congress or the American people, which means he has no choice but to pursue nationalizing the banks. If this is all true, if Treasury allowed AIG to keep their bonuses and they specifically killed the measure to stop bailout companies from getting bonuses, then Timmy is done.
Obama will not have a choice. The heat really will come down on him for this. That means Geithner thrown under the bus, and that leaves Plan N as the only card in the deck. Calls for him to go are already coming in.
That is if this is all true. Even if it's not entirely the truth, Timmy still has to go.
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