Posted on 02/03/2010 1:04:29 PM PST by NormsRevenge
WASHINGTON (AP) -- Treasury Secretary Tim Geithner (GYT'-nur) says Congress can recoup "outrageous" bonuses for AIG employees through a new bank fee in President Barack Obama's proposed budget.
American International Group Inc. is set to pay out about $100 million in a fresh round of bonuses to employees. Geithner called the bonuses, which were negotiated years ago, an "outrageous failure of policy."
(Excerpt) Read more at finance.yahoo.com ...
OK I get it. This administration keep doing and saying insane things to keep the American people angry and unable to see straight.
The list of grievances are growing each day.
Lloyd Blankfein of Goldman Sachs just took a 100 million bonus for 2009.
Both companies were largely responsible for the credit crisis and worldwide economic destruction. Both companies accepted billions under TARP. Where is Geithners phony outrage over their bonuses? Oh yahh, thats right. Bashing AIG makes for nice political theater.
My immediate thought was that this was satire...when I realized it wasn’t my next thought was “are these people for real”?
So...Tim’s going to recoup fees from the banks to pay for the bonuses that Congress OK’d? They should take that money from Mr. Dodd himself.
So Bank of America and Wells Fargo and Citi Bank shareholders get taxed to pay AIG bonuses?
Party on, AIG. Party on, TurboTim.
AIG pays out bonus, and TurboTax Timmy says get the money back by taxing Hayfield County Savings and Loan because they knew what they were doing and loaned to the local citizens?
Advisers To Obama Wary of Bonus Tax
Asset Plan Readied; President Reiterates Support for Geithner
Washington Post Staff Writers
Monday, March 23, 2009 “I think the president would be concerned that this bill may have some problems in going too far — the House bill may go too far in terms of some — some legal issues, constitutional validity, using the tax code to surgically punish a small group,” Jared Bernstein, the top economic adviser to Vice President Biden, said on ABC’s “This Week.” “That may be a dangerous way to go.”
___________ Geithner Confirms Treasury Asked Dodd For Bonuses Loophole
By Elana Schor - March 19, 2009, Treasury Secretary Tim Geithner has confirmed that his department did press Sen. Chris Dodd (D-CT) to water down the executive-bonus limits included in last month’s stimulus bill, delivering a boost to the beleaguered Dodd — but at a greater potential cost to his own damaged credibility on Capitol Hill.
In an interview set to air later today on CNN, Geithner took “full responsibility for the situation” and said “calls for resignation are part of the job,” according to an early report on the network’s website.
Late Update: The full exchange between CNN’s Ali Velshi and Geithner is posted after the jump. It’s notable how rapidly the media has become fixated on this change to the Dodd amendment ... considering that most mainstream news outlets were fudging the truth on it just days after it became law.
VELSHI: Let’s just talk a little moment again about those payments and the legal ramifications of doing anything about it. Senator Dodd says that he had a clause that was put into the stimulus bill that basically allowed these payments to be made to people at AIG in this particular unit and he says that somebody at Treasury asked him to put it in.
GEITHNER: Let me just start by saying that Chairman Dodd has played an enormously important leadership role in this and he’s doing the right thing in trying to make sure that the assistance we provide don’t go to benefit people that shouldn’t benefit from these things. And I am enormously impressed by the importance of what he’s trying to do in this case.
VELSHI: But somebody - have we figured out who told him to put this clause in?
GEITHNER: This provision? We expressed concern about this specific version. We wanted to make sure it was strong enough to survive legal challenge. But we also worked with him to strengthen the overall framework and his bill has this very important provision we’re relying on now to go back and see if we can recoup payments that were made that there was no legal ability to block.
VELSHI: But inadvertently might somebody at Treasury have told Senator Dodd to do something that has now resulted in these payments not being able to ...
GEITHNER: No, again, what we did is just express concern about the vulnerability of a specific part of this provision, the legal challenge, as you would expect us to do, that’s part of the legislative process, but again, his bill also has this very important provision that allows us to go back and see if we can recoup these payments and we’re going to explore that, but in any case we’re going to make sure that the American people are compensated for any payments we can recoup.
VELSHI: Do we know who in Treasury had this conversation with whomever on the banking committee?
GEITHNER: Treasury staff were working Senator Dodd’s staff throughout this process. Again, that’s part of the legislative process.
VELSHI: But you weren’t involved in that directly?
GEITHNER: I did have with other officials some conversations with Chairman Dodd as he was going through this process but other provisions.
VELSHI: So not about this particular one. It wasn’t you telling ...
GEITHNER: No, but I’m not sure that’s relevant because Treasury staff did express concern about whether this provision was vulnerable to legal challenge.
http://tpmdc.talkingpointsmemo.com/2009/03/geithner-confirms-he-asked-dodd-for-bonuses-loophole.php
The bonuses are chump change compared to the way in which AIG’s counterparties made off with millions at 100% book value.
Interesting. NB: The current payments are recent. I wonder on what basis they would deny a FOIA Request.
I’m not a rocket scientist, just a recently retired banker but it seems to me that banking hasn’t changed in that if the FDIC increases fees or the feds come up with a new fee, it’s all passed on to customers - a tweak here and there, nothing changes to the bottomline.
Why is it the demobulbs can’t understand that corporations just pass taxes on to customers?
Also, the connection made by this tax cheat is more than passingly strange in what has become a very strange America, lately.
So the plan is to “punish” all “big” banks for the sins of AIG? With fees that will simply be passed along to the consumer?
Does that really make any sense? Well no. But hell hath no furry like an ultra-liberal socialist wannabe, whether scorned or not.
Okay, give the money to them, take the money back, skim off the top and not a penny for the tax payers.
"Government" just isn't a good defining word for Washington any more.
“OIC. So, you’re charging me to payback the gov’t approved bonuses that were already funded with my money to begin with?”
Hey, you izz on the ball! ;-)
It is amazing how Uncle Sammy is so concerned about contract law for banker comp plans, but he’s completely willing to screw secured, senior debt holders for auto companies.
Of course once they are bankrupt, there are no contracts, but why let a few legal technicalities get in the way of a good payoff scam.
How do a bunch of idiots get something so broken that Solomon's wisdom could not fix it? The bankers who got paid bonuses for bankrupting their country and their banks should be tarred and feathered. So should the politicians who decided to reward them. What is so special about these idiot "masters of the universe." For the rest of us, our reward for doing our job is that we get to keep working. If all of the bankers on wall street can get better jobs elsewhere, well go for it. We sure don't need them on the gubmint payroll if they can be productive elsewhere.
A tax by any other name is still a tax.
You guys are screwed.
FANTASTIC!!!
So the taxpayers get to pay for the bailout.....twice!
Yay for us.
So we end up paying. Yep, that O really cares about the middle class. /SARC
Imagine MHA funds paying back TARP bailout funds instead of being used for loan modifications under MHA. It it's true, Geitner's going to be gone imo.
New Wind-Up Toy Offering FRom Obamaco
Pop(ulist) Goes The Weasel!
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