Monday, March 23, 2009

AIG fallout not going away soon

This Wall Street Journal report. Based upon the report, Geithner's aides worked closely with AIG for months on compensation issues; including the infamous bonuses.
The extent of their involvement, which wasn't widely known, raises fresh questions about whether Mr. Geithner could have known earlier about AIG's $165 million in bonus payments. When the bonuses sparked a political firestorm last week, Mr. Geithner said he learned about their full scope in early March, just days before they were paid.

Mr. Geithner and Federal Reserve Chairman Ben Bernanke will be grilled by Congress on Tuesday in a hearing that is likely to focus heavily on AIG. The flap has prompted lawmakers to seek curbs on an array of bonuses, tested the Obama administration and undermined Mr. Geithner's standing as he attempts to implement measures to stabilize the financial system.

Treasury officials say the department's staff kept Mr. Geithner in the dark until March 10. "Secretary Geithner, who has been actively engaged in shaping and executing the president's broad economic agenda, takes full responsibility for not being aware of these programs" before that date, Treasury spokesman Isaac Baker said Sunday in a written response to questions.

Whether Geithner knew or not we are left with the same basic question: did anybody read the damn bill?? And if not, what else is in there that we don't know about yet?

UPDATE: Rahm Emanuel's fingerprints are found at the scene as well.

"Right now, you get the feeling this is all about protecting [White House Chief of Staff] Rahm Emanuel,” says a former Treasury Department lawyer, who worked in that department's counsel's office on the Troubled Asset Relief Program (TARP) before joining a D.C.-based law firm in February. "At the time, we were led to believe there were basically three or four people from the Administration at the table when the final deals were cut and one of them was Emanuel."

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