Fed knew about the AIG bonuses but did not tell Treasury nor White House.

[denem]

"The American International Group informed the Fed three months ago that it would pay 165 million dollars by March 15 to employees in their Financial Products unit" Even after the transition, Bernanke kept Geithner and Obama in the dark.

http://rawstory.com/news/2008/Fed_knew_of_AIG_bonuses_failed_0319.html

[FSogol]

1. Ask for Bernanke resignations. Name Paul Volcker as acting Fed Chief. n/t

[Teaser]

12. He can't ask Bernanke to resign

Or rather he could ask, but it would have the same effect as you asking Bernanke to resign. The head of the Fed doesn't serve at the whim of the President.

[dkf]

2. Treasury is supposed to do their own oversight.

They administer TARP while the Fed administers TALF.

Treasury doesn't have a clue what is going on.

[denem]

9. I wonder if Paulson knew. Geithner didn't

"Treasury Secretary Timothy Geithner told the Post that he had not been aware of the size of the bonuses and the timing of the payments.

"I was stunned when I learned how bad this was on Tuesday ," Geithner told the Post. "I shouldn't have been in that position, but it's my responsibility and I accept that."

http://rawstory.com/news/2008/Fed_knew_of_AIG_bonuses_failed_0319.html

Yes - the buck stops with Geithner. He should have known, but I am interested in the "process" that "protected" him from the information.

[dkf]

10. Oh I'm sure Paulson would have wanted AIG to be able to close out

those trades so Goldman can get their billions.

Geithner has too many responsibilities. He can't walk and chew gum at the same time because they've given him 5 pounds of gum to chew at once.

[jody]

3. I hope you are correct and someone did not pull an "I know nothing!" a la Sgt. Shultz. n/t

[polichick]

4. Wasn't Geithner part of the Fed when the contracts were written??

According to yesterday's testimony, members of the Fed were present during those meetings.

[Gin]

13. I wondered about that too.

[annabanana]

5. This actually makes a bunch of other shit make sense...

Like a missing puzzle piece fitted into place...

[Clio the Leo]

6. sure does NT

[Jennicut]

7. Hmmm, this keeps getting more interesting by the minute

[Thrill]

8. The CEO of AIG said the Fed is at ALL their Board meetings

So they know about all of it

[dkf]

11. And why doesn't Treasury attend those meetings?

Not enough deputies you say? Really?

[denem]

14. Because it was the Fed's money, not Treasury's

... oh wait. :evilgrin:

[amborin]

15. retention bonuses were paid to AIG in DEcember 2008:

[vaberella]

17. If the above is true why are President Obama and Geitner blamed for this...

This is such shit. I wish the Pres could just take out the Fed and put another system in place because the Fed is fucking us in the ass and the American people or the MSM know better. Look at the fools on DU who are calling for Geitner's resignation like he knew.

Fuck this. Ugh!!! Now I'm angry.

As a side note thanks for this important informnation amborin.

[annabanana]

16. This needs kicks & recs!. . . . . n/t