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Stinger
03-20-2009, 10:51 AM
So if everyone knew it was coming, why the outrage by the President, his staff, and Congress all of a sudden?

Video: Congress, Geithner knew about bonuses on March 3rd
posted at 11:30 am on March 20, 2009 by Ed Morrissey
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Tim Geithner and Congress claim that they got blindsided by the AIG bonuses late last week, before anyone had a chance to stop AIG from paying them. However, C-SPANís video library tells a very different story. Watch the clip from a March 3rd hearing of the House Ways and Means Committee in which Rep. Joseph Crowley (D-NY) specifically mentions the upcoming payouts of over $162 million in bonuses to AIG execs, the very same number that inflamed Washington DC this week:

After accusing the previous administration of a lack of oversight, Crowley says this, emphasis mine:

Thank you, Mr. Chairman. Welcome to the committee, Mr. Geithner, and thank you for your responses so far. It never ceases to amaze me the level of apparent amnesia some of my colleagues on the other side of the aisle have had about how we got to this problem in the first place, and I thank you for answering Mr. Hellerís question in particular. By the line of questioning, youíre almost led to believe that because of a last month and a few days of a presidency we had the problem we have today, and thank you for setting the record straight. This didnít happen overnight. This took eight years in the making of stagnant, at best, growth.

But yesterday, Mr. Secretary, the Treasury and the Federal Reserve announced a new fourth plan to rescue troubled financial services giant AIG. I do agree that AIGís sustainability is the lynchpin for some of our recovery efforts, and itís important for the federal government to work to keep it afloat. However, I must demand that AIG increase the accountability and transparency, something that was not done during the previous administration.

For example, just last month, AIG paid 343 employees of AIG FP ó their Financial Products division that created the financial hole that AIG is in, and in turn a multibillion-dollar bill for American taxpayers ó $56 million in bonuses and are slated to pay an additional $162 million in bonuses to 393 participants in the coming weeks. And thereís more. Further bonus payments totaling approximately 230 million (dollars) are due to 407 participants at AIGís Financial Products division in March 2010. This makes no sense to my constituency.

In other words, everyone knew about these bonuses. Congress even knew enough about it to question Geithner on it, with remarkable accuracy on the total amount due to be paid out, on March 3rd ó nine days before Geithner initially claimed to know about it.

This whole episode has been a farce perpetrated by Congress and the administration to stoke artificial outrage over contractual compensation obligations. Itís a freak show put on by Democrats. Theyíre giving us populist circuses in order to build a mob mentality ó but for what purpose?

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http://hotair.com/archives/2009/03/20/video-congress-geithner-knew-about-bonuses-on-march-3rd/

Stinger
03-20-2009, 10:57 AM
Officials Knew About A.I.G. Bonuses Weeks Ago

The question was direct and prescient. Representative Joseph Crowley, Democrat of New York, asked the Treasury secretary in an open hearing what could be done to stop American International Group from paying $165 million in bonuses to hundreds of employees in the very unit that had nearly destroyed the company.

Timothy F. Geithner, the Treasury secretary, responded by saying that executive pay in the financial industry had gotten “out of whack” in recent years, and pledged to crack down on exorbitant pay at companies like A.I.G. that were being bailed out with billons of taxpayer dollars.

The exchange took place before the House Ways and Means Committee on March 3 — one week before Mr. Geithner claims he first learned that the failed insurance company was about to pay a round of bonuses that have since caused a political uproar.

A Treasury spokesman, Isaac Baker, said in a statement on Thursday night, “Although Congressman Crowley raised the issue of the bonuses two weeks ago, Secretary Geithner was not aware of the timing or full extent of the contractual retention payments or the other bonus programs until his staff brought them to his attention on March 10.”

Mr. Baker said that after Mr. Geithner had been briefed on the bonuses, he called Edward M. Liddy, the chief executive of A.I.G., and “insisted that they be renegotiated and restructured, in light of the extraordinary assistance being provided by taxpayers.”

Mr. Baker added that Mr. Geithner “takes full responsibility for not being aware of these programs before last week.”

Interviews with senior Federal Reserve and Treasury officials, as well as members of Congress, leave little doubt that the bonus program was a disaster hiding in plain sight, The New York Times’s Edmund L. Andrews and Jackie Calmes reported. Mr. Geithner is not the only one who appears not to have understood the populist fury the bonuses would set off.

Career staff officials at the Treasury, Fed and Federal Reserve Bank of New York exchanged e-mail messages about the A.I.G. bonus program as early as late February, The Times said, citing a person familiar with the matter. A.I.G. itself revealed the bonus plan in regulatory filings last September.

In November, when the bailout of A.I.G. was restructured, Treasury and Fed officials negotiated the terms under which A.I.G. could make the retention payments. And in December, Democratic lawmakers sought a hearing about the payments.

A.I.G., which incurred staggering losses through its sale of complex financial instruments tied to mortgage-backed securities, has received more than $170 billion in capital infusions, loans and credit lines from the federal government since last September, and is about to get $30 billion more.

A.I.G. executives have insisted that they informed the New York Fed about the bonus plan, and that they assumed the New York Fed was informing the Treasury.

Treasury officials have suggested that the New York Fed and the Federal Reserve Board in Washington failed to alert the Treasury staff until March 5. And Fed officials said that they not only alerted the Treasury staff weeks earlier, but discussed the issue with them via e-mail.

Despite the interagency discussions in February about A.I.G.’s ill-starred bonus plan, as well as Mr. Geithner’s exchange on the matter in a hearing, Mr. Geithner continued to insist on Thursday that he had not really understood the magnitude of the bonuses until one week ago.

“I was informed by my staff of the full scale of these specific things on Tuesday, March 10,” Mr. Geithner said in an interview with CNN on Thursday. “As soon as I heard about the full scale of these things, we moved very actively to explore every possible avenue — legal avenue — to address this problem.”

As early as December, two Democratic lawmakers had vociferously and repeatedly complained about the bonuses, and one of them went so far as to demand the resignation of A.I.G.’s chief executive.

But both Mr. Geithner, and the chairman of the Federal Reserve, Ben S. Bernanke, were preoccupied at the time with multiple crises. The nation’s banks were reeling from as much as $2 trillion in mortgage-related losses. The recession was deepening and unemployment was soaring.

Mr. Bernanke’s team at the Fed and Mr. Geithner’s team at Treasury, moreover, were reluctant to impose what they viewed as “punitive” and possibly self-defeating pay restrictions on companies being bailed out.

In early February, Mr. Geithner opposed a provision in the economic stimulus bill that would have slapped a steep tax on the kind of bonuses that A.I.G. was about to pay.

If A.I.G.’s plan to pay out an additional $165 million in bonuses came as a surprise to Mr. Geithner, it did not come as a surprise to staff at the Treasury, the Federal Reserve in Washington or the New York Fed.

Staff at all three agencies had been in daily communication with each other about A.I.G. ever since the Fed agreed to lend the company $85 billion in September in exchange for almost 80 percent of the company.

In late November, after A.I.G.’s plight became worse and the Treasury jumped in with a $40 billion capital infusion, the three agencies negotiated cuts in bonuses and salaries for many of the company’s top executives.

Officials at the New York Fed carried out the most direct oversight of A.I.G., and they were well aware of the coming bonus payments, The Times said, citing a person familiar with the matter.

http://dealbook.blogs.nytimes.com/2009/03/20/many-in-government-knew-weeks-ago-about-aig-bonuses/

HonestChieffan
03-20-2009, 11:02 AM
But.......its Bush's fault

Chief Henry
03-20-2009, 11:09 AM
The faux outrage gets the sheep pissed off. With pissed off sheep, it plays into the demoRATS game plan of how the rich fvck the little guy.

***SPRAYER
03-20-2009, 11:23 AM
I'm surprised Bunyon hasn't posted in this thread yet.

:rolleyes:

KC Dan
03-20-2009, 11:27 AM
But, but, but, but..... TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS!!!!

Lying f'n bastards.

HonestChieffan
03-20-2009, 11:29 AM
We control the term limits....if people will vote the buggers out. I have little faith in the voter. Time and time again we return the same old sleze balls back. There is no difference between affiliation of the sleze ball. They should all be turned out to pasture. But many will be reelected because the voter only votes party line in many cases. Its sad.

orange
03-20-2009, 11:30 AM
But, but, but, but..... TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS, TERM LIMITS!!!!

Lying f'n bastards.

YEAH! We should elect Republicans who will make a Contract With America...


... oh, wait. :spock:

KC Dan
03-20-2009, 11:34 AM
YEAH! We should elect Republicans who will make a Contract With America...


... oh, wait. :spock:
You are a fuggin' tard. I want them all out. Demos, repubos, independos - all of them. Not tomorrow, not today, Yesterday. You are a partisan hack and I am sick and tired of your hatred attacks on the right. If you want to be intellectually honest for once in your lifetime, acknowledge that Dems, Pubs and Independs are a very big part of this mess we are in now and they are making it worse. They are all crooks living on our dime and stealing more every second. Jees....:banghead:

orange
03-20-2009, 11:42 AM
I want them all out.

Replaced by what? All there are are MORE POLITICIANS. You are completely full of shit - unless you can point out where you were screaming to get all the damn Republicans out.


My point above is "we always hear the TERM LIMITS bleat from the side that's out of power. When they're back in power, we never hear it from them again."

KC Dan
03-20-2009, 11:47 AM
Replaced by what? All there are are MORE POLITICIANS. You are completely full of shit - unless you can point out where you were screaming to get all the damn Republicans out.I have been stating all of them including term limits since 2001 on this board. Go fugg yourself hack. I didn't serve 20 years for this country to have to explain my beliefs to you nor put up with these idiots in Congress lying down. I am much more intimately involved to change things in the real world than just continually tote my party's line on a sports BB. Keep drinkin' the koolaide...

Radar Chief
03-20-2009, 12:37 PM
I have been stating all of them including term limits since 2001 on this board.

Yea, Iíll vouch for that.

KC Dan
03-20-2009, 12:40 PM
Yea, Iíll vouch for that.
I know better and took a sabatical from this forum for quite awhile. Coming back to it may have been a mistake...Shame on me, maybe I should start wearing my t-shirt again...

mlyonsd
03-20-2009, 03:55 PM
Snowe tried to put a cap limit of $100,000 on bonuses and the dems killed it.

Of course they knew what was going on. Watching their 'acting' in front of cameras is just plain disgusting.

BucEyedPea
03-20-2009, 05:24 PM
They're pandering caterwauling a-holes!

memyselfI
03-20-2009, 06:56 PM
So if everyone knew it was coming, why the outrage by the President, his staff, and Congress all of a sudden?



Deception and phoniness has gotten them this far so why stop now? :doh!:

alanm
03-20-2009, 08:51 PM
I think the whole faux outrage over the bonus's due AIG and NOW to the Mae and Mac clowns is a sleight of hand to cover up the fed borrowing a trillion dollars. In nonexistent money I might add. Nothing like devaluing the dollar in record time. Meanwhile Chairman Zero is out yucking it up with Leno on the campaign trail that doesn't end, bowling and filling out his tourney bracket. :spock:

mlyonsd
03-22-2009, 02:25 PM
Huh, I wonder why this thread died since it had so much potential for the Obots to show us with examples why it's premise was so wrong.

RINGLEADER
03-22-2009, 02:56 PM
Huh, I wonder why this thread died since it had so much potential for the Obots to show us with examples why it's premise was so wrong.

I did enjoy when Obama, at one of his countless press avails to talk smoothly but say nothing, was asked point blank (by, I believe, NBC's Chuck Todd) about when he knew about the bonuses. His response was something akin to: "that's not important, we need to look forward"...LOL.

mlyonsd
03-22-2009, 03:11 PM
I did enjoy when Obama, at one of his countless press avails to talk smoothly but say nothing, was asked point blank (by, I believe, NBC's Chuck Todd) about when he knew about the bonuses. His response was something akin to: "that's not important, we need to look forward"...LOL.

At one point I thought Obama was a special kind of politician. That's what I get for thinking.