Geithner defends bonus action
Treasury Secretary explains his role in stimulus bill talks. At issue: Loophole that allowed $165 million in bonuses to go to AIG executives.
NEW YORK (CNNMoney.com) -- Treasury Secretary Tim Geithner told CNN Thursday that his department, concerned that language about bonuses would not hold up to a court challenge, asked Sen. Chris Dodd to include an executive pay provision in the stimulus bill. The loophole allowed bailed-out insurance giant American International Group to pay out $165 million in bonuses.
In an interview with CNN's Ali Velshi, Geithner said the Treasury Department was concerned the government would face lawsuits if contracts were breached for the bonuses.