Treasury Secretary Timothy Geithner confirmed Thursday that the department did talk to Sen. Chris Dodd about a clause he put forth in the stimulus legislation that would have strictly limited executive bonuses.
A loophole in the bill allowed bailed-out insurance giant American International Group to keep its bonuses.
The Treasury Department was concerned that legislation that would restrict contractual bonuses would not hold up to legal challenges, Geithner said in an interview with CNN's Ali Velshi.
"We expressed concern about this specific version. We wanted to make sure it was strong enough to survive legal challenge," Geithner said.
Geithner's interview will air on CNN in full at 8 p.m. Thursday. Read full article »
CNN's Ted Barrett and Sandra Endo contributed to this report.