Posted on 03/20/2009 11:28:03 AM PDT by Ernest_at_the_Beach
Federal Reserve officials knew for months about bonuses at American International Group but failed to tell the Obama administration, according to government and company officials, exposing problems in a relationship that is vital to addressing the financial crisis.
This claim is not sitting well with Democrats.
“I’m sick and tired of hearing the administration and the Secretary of the Treasury say, ‘I just found out about it,’ ” Rep. Paul E. Kanjorski (D-Pa.) said yesterday.
The Washington Post points out that Obama’s Treasury Secretary’s in fact knew about the bonuses months ago.
AIG officials met with Geithner and then Treasury Secretary Henry M. Paulson Jr. in New York on Sept. 14 to warn them of the dire threat posed by the derivative business developed by AIG’s Financial Products unit. Executives told the two men the firm needed help but had at least a week before it faced collapse, sources said. Paulson left for Washington. But Geithner stayed up all night with officials at the New York Fed to examine AIG’s situation. He discovered not only an enormous number of complicated trades, estimated at $2 trillion, but that AIG had backed retirements funds across the nation. He also realized that a collapse of AIG was imminent, and that the fallout would ripple across the banking system, sources familiar with the episode said.
The Washington Post cites multiple sources including the corroboration from the Treasury Dept’s own PR people.
(Excerpt) Read more at floppingaces.net ...
Six months. They knew six months ago that trouble was afoot. Then what, three months ago the OBAMA machine passed a funding bill that specifically included the payment of the bonuses. So the entire spectacle of the "questioning" of Libby was as phony as Obama's birth certificate.
Well folks I have a bit of financial advice, buy ammo. It isn't going down in value and just might be the new dollar. The current communist administration is destroying this nation and is being cheered on by the dumbasses that voted for them. They will still be cheering as they stand in the bread and soup lines.
CNN: Sen. Dodd (D) Lied And Secretly Removed Clause to Allow AIG Bonuses
Video of Dodd....at the link.....
***********************EXCERPT**************************
Also, note that he says he did the discreet removal-not because he’s the largest campaign recipient of money from AIG (noooooooo), but because Obama’s Treasury Dept urged him to do it. That’s the same Treasury Dept that claims they were shocked and surprised, and the same Administration that says it was shocked and surprised…all while we’re supposed to ignore that they knew about the Bonuses months ago. Apparently, not only did the Obama Admin KNOW about the bonuses, but they went out of their way to covertly get them allowed!
I think they’d rather have us upset over millions rather than the billions AIG gave to foreign banks.....
http://www.politico.com/news/stories/0309/20039.html
"Would I have liked an earlier warning system on this? Yeah," said David Axelrod, a senior White House adviser. "Would it have markedly changed things? Probably not. The legal constraints are the legal constraints."
The WaPo is still insisting O didn't know anything until the last minute, so I guess Geithner, if anyone, will take the fall for this crapola.
I read an earlier story that said Geithner "recused" himself from discussions about AIG when at the Fed, since he was in the running for Treasury Secretary. It looks like that story has changed now, since the WaPo is saying "Geithner stayed up all night (in September) with officials at the New York Fed to examine AIG's situation."
Liars lying to liars about liars for the benefit of the gullible.
Bonus Gate: How Obama, Geithner and Dodd Misled the Public on AIG Bonuses
Didn’t I just read something about congress now wanting to
tax the bonus recipients some incredable amount?
Isn’t that an ex-post facto law?
How can dis bee?
Oh that is real interesting!...thanks...
Obama got nearly as much money from AIG as Dodd received.
We are digging for the answer....but see #25....MSM would rather not answer that question....
LOL!....thanks.
There, look!
What is that in the wood pile?
For those not familiar with the flurry of reports and threads on the Teleprompter and Obama...see this:
The Fed knew.
Treasury knew.
The White House knew (no one named by the WaPo, but only that "they knew.").
Dodd knew.
Obama didn't know.
So, Obama is either totally out of the info loop, a liar, or an idiot. (Probably all three.)
Makes you wonder in whay order does Hillary stand a chance on being president if she can engineer the resignations of those before her in succession?
Excuse me, but while we’re being played by these Bozos in Washington, we have just printed a TRILLION dollars and given it back to ourselves in a panic move to shore up credit in the US. That’s the real issue today. Screw the bonuses!
The ole...you scratch my back (campaign contributions)and I’ll scratch yours after I’m elected!! Who would have ever guessed!!
Not a prayer in Hades.
Not everybody follows the news cycle; to most of the public -- trying to make a living and worried as hell about the future -- it's too complicated to figure out, especially with a sycophantic media ready to cover the O's posterior at every turn.
So the end result is that the anger is directed at the wrong people -- those who were promised, contractually, these bonuses by AIG -- and not the lying politicians who are making political hay out of it.
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