"It's like everyone at the Washington Post is Simon Cowell."
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 ...
It would be nice to get our hands on that story...
Getting close with this...from a Blog on the KC Star....:
Obama in the dark on AIG bonuses
************************EXCERPT********************
When the government rescued AIG in mid-September, no one was more central to the decision than Geithner.
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.
Geithner, with Paulson and Fed Chairman Ben S. Bernanke, decided to lend the company $80 billion in exchange for an 80 percent ownership equity stake.
About a month later, Geithner redesigned the bailout package for AIG, which raised the total to about $123 billion.
During this period, Geithner's primary concern was keeping the financial system from collapsing, not what firms were paying their employees, a source said. Other staff members at the Fed and Treasury were in charge of the compensation issues and only briefed Geithner, two sources said. Once nominated for the Treasury post in December, Geithner recused himself from affairs related to specific firms.
AIG executives said they disclosed in a quarterly filing late last year to federal regulators that employees at Financial Products would receive retention bonuses but the filings, with the Securities and Exchange Commission, did not detail how much individuals would be paid or the dates of the payments. The company revealed those details in meetings with New York Fed officials in January, AIG chief executive Edward M. Liddy said at a congressional hearing yesterday.
Thanks Ernest!
Huh? The lamebrain couldn't do both?
Another example of Geithner's gross incompetence-----a Treasury Secy is expected to DO BOTH---to protect the US taxpayers.
THE FACTS ARE THESE Geithner screwed up royally: Bailed out AIG at 2-3 times the cost it should have been.....among his other screw-ups.
Geithner, former head of New York’s Federal Reserve, upon getting appointed, was described by the NY Daily News as a “veteran Treasury insider.” Geithner said back then he wanted “more regulation and oversight”.....guy apparently forgot that rules and regs had been his job all along as a “veteran Treasury insider.”
So much for Geithner's perspicacity
High Noon for Turbo Timmy----"Time for Deputy Geithner to get out of Dodge City"
Obama deputized Geithner to shore up the failing economy. Instead, Turbo Timmy has devastated it.....everytime Tim speaks, the market dives to new lows.
The classic Western High Noon is the story of a town and its plucky citizenry who are threatened, then beset, by a bunch of thugs. The story centers on the town's top lawman who is surrounded and lauded by friends at the start, then deserted and doomed at the end.
It could be the metaphor for the Obama Administration.
Deputizing Geithner was a blunder of massive proportions. It's time for Turbo Tim to get out of Dodge City.
"It's like everyone at the Washington Post is Simon Cowell."
March 20, 2009
TREASURY BOSS: I PUSHED FOR AIG LOOPHOLE
By Daphne Reiter, NYP WASHINGTON
http://www.nypost.com/seven/03202009/news/politics/treasury_boss__i_pushed_for_aig_loophole_160469.htm
Tim Geithner admitted he asked Sen Chris Dodd (D-Conn) to protect AIG bonuses in the bailout bill.
Geithner is in a finger-pointing match with Dodd "....we just expressed concern about a legal challenge," he told CNN. But Geithner was silent when Dodd insisted Treasury forced him to include the AIG exemption, and was silent when Obama's people told news outlets that Dodd's account (which Dodd changed from the previous day), was not true.
Geithner also appeared to back away from Obamas' assertion that he first learned of the bonuses last week..... House Republicans moved to force Geithner to provide an accounting of all communications re AIG. Dodd said he remained confident in Geithner's performance. "I do, and the president does, and that's what's key," Dodd said.
==================================================
Tim sez "Dodd dood it"---- Dodd sez "Tim dood it." They all say "Obama done did it." Go for it guys.
Somewhere, in some dark secluded place, George Soros and pals are planning Obama’s ‘wag the dog’ moment as I type.
WATERBURY, Conn. - From a garage near an abandoned factory in the south end of town - the sound of squawking in the night. It's an odd noise.... But police in Waterbury knew exactly what they were dealing with. It was another cockfight.(Excerpt) Read more at boston.com.........
============================
Rahm Emanuel sprang into action. Rahm instructed Obama to send a memo to Barney Frank: "Stay home, Barney. This is not what you think it is."
Too late. Barney had already left a message for Chris Dodd ......saying that he could not wait to see Dodd's (cough) packag
"Lie? Me? I'm a community organizer who became president."
Perspicacity, Liz? You're out of my league for sure!
LOL!
Someone mentioned a man's name that lived in London that worked for AIG who STARTED these CREDIT SWAPS that took down AIG. This was a VERY SMALL dept within AIG that the bigwigs didn't even know about it!!
ANYONE KNOW THIS GUYS NAME???? He walked away with 500 MILLION DOLLARS!!
In late October, the $700 billion Troubled Assets Relief Program passed Congress, which includes rules about executive compensation but nothing about retention bonuses. The Fed and Treasury Department soon began pumping more money into AIG, and the NY Fed began studying the compensation policies on the books -- while also making efforts to save banks and rescue the economy. But by then Geithner's nomination was pending and he had recused himself from dealings with AIG.
No mention of the September all-nighter by Geithner that WaPo is now reporting.
And the horse he rode in on!
In this case; "TOTUS"
ROFL!
Thanks...interesting...I like the Headline.
In our fury over the bonuses at AIG, we should not forget the PIGs there who pocketed millions while endangering the global economy.
At the top of the list is 54-year-old Joseph Cassano, a Brooklyn cop's kid made good who went oh so bad. As head of AIG's Financial Products unit, Cassano racked up billions of losses while assuring investors it was nearly impossible for his unit to lose.
"It is hard for us, without being flippant, to even see a scenario within any kind of [rhyme] or reason that would see us losing one dollar in any of those transactions," he told investors.
Before he was finally fired last March, Cassano pocketed $280 million in cash and an additional $34 million in bonuses. Under a "retirement" agreement marked "confidential," Cassano also got a $1 million-a-month "consulting fee."
AIG subsequently cut off these payments, but Cassano still walked away with more than $315 million while the company staggered under $440 billion in liabilities.
Taxpayers had to pour in $170 billion in bailout money....."
The derivatives business sounds an awful lot like ‘bucket shopping’ ... and that market has ballooned to near $600 TRILLION in exposure, most of which is U.S. citizen exposure. The AIGFP division used to be in Londonistan. Has it moved recently?
There was an excellent special on CNBC last night on the ....The Super Rich....there are many people out there with a staggering amount of money...Billions...<P.It’s a new Gilded Age.
The only way we will stop this stuff if if some of it washes into somebody’s else’s territory. It could be that Reid and Pelosi are letting their minions speak out as cover. to give an appearance of opposition.
Joseph Cassano!!! That’s the name!!! He lives in London and he was responsible for the Credit Default Swaps which is the dept that brought down AIG....and he has pocketed HUNDREDS of MILLIONS of DOLLARS!!!
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