AIG’s big bonuses have Congress in a fury. Senate Banking Committee Chair Chris Dodd admitted his staff agreed to water down executive pay provisions, essentially preserving the loophole that allowed the bonuses to go forward. But, the Democratic senator of Connecticut is pushing back hard, placing the blame on the Obama administration, saying that it is the Treasury Department that insisted on the inserting the loophole. Dodd also added that at the time he supported the action, he was not aware of any pre-existing AIG bonuses.
The longtime senator, first elected to Congress in 1974, has consistently been one of the safest, most popular Democratic incumbents, but currently he’s in trouble not only because of the AIG mess, but also in the polls. Two recent polls found Dodd trailing a theoretical challenger in his state.
ABC News’ Senior congressional correspondent Jonathan Karl weighs in with the facts on Thursday’s edition of Politics Live.