Today Edward Liddy, Chairman and CEO of AIG, told a Congressional House Panel that the US Federal Reserve has been aware of the retention bonuses for months.
Now, before Tim Geithner became Treasury Secretary he was chairman of the New York Federal Reserve and Ben Bernanke, the current Federal Reserve chairman were both instrumental in crafting AIG’s bailout.
If Liddy is to be believed both men were well aware that these bonuses were to be distributed on Friday March 13th months in advance.
However, it seems politicians are increasingly pointing the finger at Geithner.
I know it’s hard to be fair right now but Geithner isn’t the only one to be blamed for the situation we now find ourselves in. Bernanke was there too and so was previous Treasury Secretary Hank Paulson .What was his contribution to these million dollar bonuses? What did all these men know? And why didn’t they do something about this bs then?
And now we find out that there was a provision to cap these bonuses but it was removed from the final stimulus bill!
ARE THESE PEOPLE MAD?
I want answers!
Drag all of them up to Capitol Hill. Not just Liddy and Geithner! Supboena Paulson too!
It’s easy to dislike Tim Geithner. From his tax avoidance problems during his confirmation hearings, to his very first press conference where he was described by one writer as ‘looking like a terrified spaniel’ . Geithner doesn’t seem to be doing anything right. And the more he tries, the worse it gets. He hasn’t inspired confidence in the markets or the American people. And during bad economic times confidence is what most people seek and eagerly look for from their leaders. And he’s failed miserably.
However, if Geithner is forced to submit his resgination Bernanke should submit his as well since they are both equally responsible for this debacle. And one man shouldn’t be left holding the bag for the international mess known as AIG.