Thursday, March 19, 2009

Geithner Requested AIG Bonus Loophole

According to CNN's Ali Velshi, Treasury Secretary Timothy Geithner was responsible for adding the AIG bonus loophole.

...Geithner told CNN Thursday his department asked Sen. Chris Dodd to include a loophole in the stimulus bill that allowed bailed-out insurance giant American International Group to keep its bonuses.
If this is true, then Geithner should resign. Yes, we'll hear about it for the next week how yet another one of Obama's appointments was a screw up, but this one was over the top, especially in light of the fact that everyone was trying to throw Senator Chris Dodd under the bus for approving something administration officials at the Treasury Department requested. That's the Bush way of doing things (ie. George "Slam Dunk Medal of Freedom" Tenet) and it shouldn't be tolerated if we're to have any faith in what President Obama has to say in the future.


Annette said...

If you listen to what he says in the video that is not exactly what he says. He says he will take responsibility because he is the boss.. but that he is not sure why it is important who actually told Dodd to write it in a certain way. He also said that the only thing that was really said was that there had to be wording to make sure it was legal, so it didn't hurt the entire bill. I saw this on CNN earlier.. and just watched it again to refresh my memory. He also said that because of Dodd's bill they would be able to get the money back.. and praised him and the clause. So it's a little confusing as to why everyone is so angry about it. If it is a good thing and is going to help get the money back, why is it such a bad

Broadway Carl said...

I think it's a cop out for Geithner to try and sweep the inquiry of WHO asked for the privision under the rug, simply for the fact that it looks like they're trying to hide something. It comes across as CYA.

And if it's really the case that they can get the money back, then someone better come up and state their case quickly. If there's a way to get the money back BECAUSE of the clause, then why have that tax vote today?

Annette said...

I think that is Congress's way of covering their complicity in the entire mess.. they don't know what else to do so this is their only recourse they figure.

I don't think it will ever hold up in court and will never pass the Senate. It was just something to do to look like they were doing something.