Thursday, March 19, 2009

Liddy Says Geithner Knew About Bonuses

AIG Chief Edward Liddy says that Geithner knew about the pending bonuses to its employees as far back as November 2008 when he was the Federal Reserve Chairman. This directly contradicts the timeline put forward by Geithner and the Administration,who claims that they only found out this month.

OK, which one is it. Did Geithner know about the bonuses in November, and is simply conducting an outrageous diversion for the public's amusement, or is he a dolt who didn't know until last month. Either one is not good, but if we are going to get into a situation where another Administration starts lying to us, there is going to be a severe collapse of confidence by the American public, the likes of which we have never seen.

The reality is that Geithner screwed up. I understand, or as our President says "I get it." There are thousands of employees at AIG, thousands of employees with different compensation packages. What undoubtedly happened is during the original TARP discussions and Geithner's involvement under the Bush Administration, the focus was on the "big" compensation packages, not the hundreds of others. (Keep in mind that the $165 million we are talking about, while a huge amount of money, is less than 1% of the 170 billion that AIG has received),

I get it. You were not looking at compensation packages that constituted less than 1% of the total bailout. I understand. In the grand scheme you were saving the country and the economy, and in context, $165 million was not a big deal. Completely understandable.

So why are you now screaming about AIG taking the bonuses, when you have already acknowledged that the amount of the bonuses is insignificant in the grand scheme of things?

You are not a liar, you are a politician doing what politicians do far too often. Pandering. has the details - AIG Chief, White House Statements At Odds?
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