After denying having anything to do with crafting language in the stimulus bill that allowed bailed-out insurance giant American International Group to keep its bonuses, Sen. Christopher Dodd admitted that he and the Treasury Department were responsible for the loophole.

Congress last month passed a bill that President Obama signed into law, allowing AIG to keep its bonuses. For days, no one would say who was responsible for the loophole that let that happen.

The $787 billion stimulus bill included a measure from Dodd to limit executive bonuses strictly. But slipped inside at the last minute was an exemption for bonuses agreed to “on or before February 11, 2009.” That allowed AIG to go ahead with its controversial bonuses.