Geithner Tells Goldman To Cut Bonuses, Says All Banks Would Have Failed

Zero Hedge ^ | 12/4/09 | Tyler Durden

[FromLori]

Even Timmy is slowly realizing that the Administration will need to find a way to deflect Main Steet's anger at Goldman and keep it focused exclusively on Wall Street instead of equating it with Obama et al. The problem is - you make some very serious, tentacled enemies in the process. Geithner also flip flops on his prior position on the transaction tax. While before he was more opposed to the transaction tax than even Marla, his new "windsocked" position on the topic may now provide a challenge even to Nitric Oxide inhibitors.

But here is the clincher for the horse head of the year award:

Q: Did Goldman Sachs need federal aid 14 months ago? A: The entire US financial system, and all the major firms in the country, and even small banks across the country, were at that moment in the middle of a classic run. I think the system was at risk and none of the big institutions would have survived a situation in which we let that fire burn itself out. And on record year end bonuses:

A. We have to end that era of irresponsibly high bonuses. Executives were paid for taking imprudent risks. It is very important we change the way these executives are paid, the form of compensation, this year. And what that, Timmy can proceed to consider options outside of the public sector (but not at Goldman Sachs.)

clip link

[FromLori]

ping and

http://www.zerohedge.com/article/means-war-battered-geithner-turns-goldman-sachs

http://www.zerohedge.com/article/buffett-takes-some-anti-hypocricy-pills-realizes-subsidies-are-actually-bad

http://www.zerohedge.com/article/guest-post-alternative-read-todays-bullish-jobs-data

http://www.zerohedge.com/article/truth-about-bls-lies

[Califreak]

I believe Timmy’s days are numbered.

[Rapscallion]

Most of the Goldmasn bonus money should go to the investors - bond holders and stock holders. The executive bonuses are looking more and more like executive looting.

[FromLori]

These Bankers In Hong Kong Are Definitely Having More Fun Than You

http://www.businessinsider.com/sexy-santa-2009-12

[Brilliant]

Is he saying that Obama now owns Goldman as well?

[FromLori]

And how about the taxpayers? All that money funneled to Goldman through AIG!

[Califreak]

I never believed from day one that without the “bailout” all the banks would fail.

I’m tired of all these faux crises they’ve been throwing at us. It’s been nothing but Cloward-Piven crap since this domino dropped.

[MrPiper]

It’s been nothing but Cloward-Piven crap since this domino dropped.

You are right,,, my credit union was doing just fine w/o taxpayer help. Screw the big banks!

[org.whodat]

Whenever, executives pay themselves for future income,they are stealing. Period!! And they were all doing this.

The purpose of corporations was to spread risk and to reward the investors. Not to run a day traders gambling casino and have the board and company officers get rich at the investors expense. Maybe an excess profit tax should be paid by a corporation, at a minimum, be equal to the compensation of the board and the top 100 officers.

[an amused spectator]

The problem is - you make some very serious, tentacled enemies in the process.

Angry vampire squid alert!