Via the Hill:

Bayh warned that stripping Lieberman of his chairmanship position on the Homeland Security and Governmental Affairs Committee could prompt the Democrats' 2000 vice presidential nominee to side with the GOP on close votes next Congress or resign his Senate seat. If he resigns, Connecticut's Republican Gov. Jodi Rell would replace Lieberman with a temporary two-year appointment, likely a GOP senator.

“We can take away his chairmanship, that's something we have the right to do,” Bayh said on MSNBC. “What you will have at that point is someone who may very well resign, or someone is embittered ... who might not be with us on some of these key votes.”

Bayh said that Lieberman must first issue a “sincere apology” for campaign attacks warning of the perils of an Obama presidency and a large Democratic majority in Congress. He said Democrats should allow him to keep his chairmanship on the condition that he would not use his subpoena power and influence as chairman to undermine Obama's presidency. Otherwise, Democrats would take away his gavel at any point next Congress, Bayh warned.

Bayh said Democrats should tell Lieberman sternly, “Look, we're giving you a chance here, but if you don't do the right things as chairman, and we see any continuation of this kind of behavior ...the game is up at that point.”

Call me crazy, but Lieberman doesn't seem like the kind of guy to say, "I take it all back!" More to point, Lieberman knew what he was doing: Even if McCain had won, the chances of the GOP taking over the Senate were nil, so he was going to face this situation regardless.