Geithner: Treasury pushed for bonus loophole

[jefferson_dem]

Geithner: Treasury pushed for bonus loophole
Posted: 04:25 PM ET

Treasury Secretary Timothy Geithner told CNN Thursday his department asked Sen. Chris Dodd to include a loophole in the stimulus bill allowing bonuses to be paid.

(CNN) — Treasury Secretary Timothy Geithner told CNN Thursday his department asked Sen. Chris Dodd to include a loophole in the stimulus bill that allowed bailed-out insurance giant American International Group to keep its bonuses.

In an interview with CNN's Ali Velshi, Geithner said the Treasury Department was particularly concerned the government would face lawsuits if bonus contracts were breached.

Dodd admitted to CNN Thursday he'd added the controversial provision after a Treasury official pushed for it. Earlier in the week, Dodd had said he had not played any role in the addition of the loophole.

Geithner told Velshi Thursday he takes full responsibility for the situation.

Also in the interview, airing in part at 5 pm ET on CNN, Geithner said:

- He does not believe TARP or the stimulus bill was rushed through Congress

- Calls for resignation are part of the job

-Officials will make sure that any further money comes with provisions (including executive compensation)

-His team will have a detailed plan for the banks w/in the next couple of weeks

-The recession will likely end in 2009, and 2010 will be a year of growth

http://politicalticker.blogs.cnn.com/2009/03/19/geithner-treasury-pushed-for-bonus-loophole/

[polichick]

1. Well, one mystery solved, one to go.

[Hawkowl]

2. Geithner must go.

He is an incompent cretin in bed with Wall Street. He doesn't have a clue as to what he is doing.

[jefferson_dem]

5. Nah.

However, I have placed your voice among the chorus of ideological malcontents (on the left and the right) who have come out calling for his head on a stick.

[Median Democrat]

9. Gee, What About All The Hypocritical Republicans Who Opposed ANY Exec Comp Caps?

The amazing thing about the media/Republican driven outrage is that Republicans were opposed to ANY caps on executive compensation. Now, they are acting as though they were for such pay caps all along. What happened to the heated cries of socialism?

http://www.huffingtonpost.com/2009/02/06/gop-opposes-pay-limits-on_n_164544.html

/snip

Other Republicans disagreed. "It's still government running business," Inhofe said.

"It's a leap, because the executive at the bank is a free agent who can leave the bank and go to work someplace else," said Sen. Bob Bennett (R-UT) of the welfare comparison. "You run the risk of having a brain drain at the bank of their top talent."

Bennett said, "Some of the things some of these bank executives have been doing demonstrates they have a tin ear. At the same time, I'm generally troubled by wage and price control, no matter how logical it may appear."

The objection to the government intervention in salaries is rooted in the Republican belief that government is inherently ineffective. "If Congress can run a financial institution, it belies everything I've seen in this body. Government does not do a good job running private institutions," said Sen. Kit Bond (R-MO).

Sen. Tom Coburn (R-OK) agreed: "If we do such a good job of running the federal government, what business do we have telling them how to run the banks?"

The GOP is also concerned that setting compensation limits could put the country on the road to serfdom. "This is just a symptom of what happens when the government intervenes and we start controlling all aspects of the economy. This is just the first piece," said Sen. Jim DeMint (R-SC). "If you accept the fact that the government should be setting pay scales in America, then it's hard not to go after these exorbitant salaries. But I think it's a sad day in America when the government starts setting pay, no matter how outlandish they are."

"What are we going to do next?" wondered Martinez. "Tell a company if they get TARP money where there offices should be? They should be renting maybe from an abandoned federal building?"

Minority Leader Mitch McConnell (R-KY) and and Sen. John McCain (R-AZ) may have had the savviest responses to the tricky political question. McConnell didn't acknowledge that he'd been asked the query; he walked on to the Senate floor instead of answering. McCain declined to comment.

/snip

[jefferson_dem]

11. Folks need to get a grip and get on board.

There was no secret provision.

http://www.dailykos.com/storyonly/2009/3/19/710606/-There-was-no-secret-provision-to-allow-AIG-bonuses

[soothsayer]

3. Hey, the global recession is magically ending! Go out and spend!

The crisis is over because AIG gets to keep its bonuses, I guess. Hooray for Timmy!

[Thrill]

4. CNN has to mention Dodd lying in every article or every time they mention him on their network

[MarjorieG]

6. I'm tire of cheap shots at Geither, enabling the GOP and media, who go with their motives and simple

to understand issue of bonuses. Try unraveling all that Bush left, and beating back the effort to pin this mess on the administration.

Try solving all the issues that need attending, saving the banks, also.

Cheap shots.

[Thrill]

7. He deserves a chance with his whole team in place

He's being unfairly blamed for things

[jefferson_dem]

10. No shit.

I'm not surprised that the media whores and right-wing nuttery has called for Geithner's head but to hear the "outrage" from my peers at DU is troubling...to say the least.

http://www.youtube.com/watch?v=w2ujcG4nP7I

[uponit7771]

8. Geithner scores some points there with me, establish's what I thought; he's the less corrupt not the

...most capable.

[MarjorieG]

12. too much on his plate-bailout, new regulation, housing cure, G20 preparation, all without staff.

He wants time for banks to get rid of toxic assets beore stress tests.

We need more PR about what he's doing and challenges, without jeopardizing companies who need to pay us back.

[global1]

13. I Think The Repugs And Their Rich Financial Based Friends Are Afraid Of Geithner......

I think they know that he will come through for President Obama and make drastic changes on how these people screw us on a day-to-day basis. I think they are trying to sabotage his efforts and that is why they are trying to sandbag him. They know he knows where many of the skeletons are buried. They know he is going to do some digging and stop their grave-robbing.

Give the guy a chance. If President Obama is confident in Geithner - than I am too.

[Sebastian Doyle]

15. Right, because the former head of a Federal Reserve Bank is going to be willing to do what's needed

Which is (among other things) abolishing the goddamn useless Federal Reserve.

Timmy's going to do that?

Yeah, right after McDonald's starts selling only health food.

[global1]

17. Oooou!!! - Looks Like I Touched A Nerve Here - Sorry.......

I'm just stating my opinion and am willing to give the guy a chance who has been on the job even a shorter time than the President.

[ironmania75]

14. And the winner is...Glen Greenwald

He was right. And Dodd showed class by saying to CNN that it was only "staffers" with whom he spoke to. Dodd tried to defend Geithner from attacks from Republicans, apparently, since now we know Geithner lobbied Dodd.

[DevonRex]

16. You're back again?

[demo dutch]

18. Dodd should have refused but didn't