The loophole was part of measure written by Sen. Chris Dodd, D-Conn., but he told ABC News that it was the Treasury Department that pushed for it during closed-door negotiations with House and Senate leaders.
"I was not in the room," he said.
But House and Senate leaders were.
House Majority Leader Nancy Pelosi, D-Calif., told ABC News that the language in the measure "never came to the House side. ... It's a matter of absolute fact and record."
Asked if she opposed the final bill, Pelosi said, "The language that related to this is in the Senate bill."
Speaking on the House floor earlier this week in support of the bonus tax, Pelosi said, "It just simply isn't right. When there is a reward, a spelled-out-in-advance reward for those who will take undue risk -- when they fail, they get a bonus, the taxpayer gets the bill. This must end."
In an interview conducted by CNN yesterday Geithner acknowledged that the Treasury Department "expressed concern" about the provision as the government wanted to "make sure it was strong enough to survive legal challenge.