Timmy's brilliant plan to recoup AIG bonuses.

[formercia]

http://finance.yahoo.com/techticker/article/211012/Geithner-Caves-on-AIG-Bonuses,-Defends-Liddy

Geithner Caves on AIG Bonuses, Defends Liddy
Posted Mar 18, 2009 10:32am EDT by Henry Blodget in Media, Newsmakers, Recession, Banking
Related: AIG, ^gspc, ^dji

From The Business Insider, March 18, 2009:

Tim Geithner is now completely on the defensive. In a long letter to Nancy Pelosi, he explained how and why he approved the AIG bonuses (troubling) and described a plan to "recoup" them. The letter will not likely stop the growing chorus of criticism that may well drive Geithner out of office.

Geithner's new plan will not "recoup" the bonuses at all: It will merely reduce the amount of the next taxpayer handout to AIG from $30 billion to $29.835 billion. This is not likely to quell the outrage: What most people are angy about is that AIG paid $165 million of taxpayer money in "retention" bonuses to executives who blew up the firm (many of whom aren't at the company anymore).

The more troubling part of the letter, though, is Tim Geithner's description of his own approval of the bonuses. He says he registered "strong objections" and then asked for a written legal analysis of why the bonuses had to paid. This does not sound like the behavior a man who has the balls necessary to stand up to the many constituencies that want to roll right over him right now (which is the kind of man we need during this crisis). It sounds like the behavior of a man who is already thinking of how to defend a decision he knows is a bad one.

--snip--

[aquamarina]

1. This guy is completely tone deaf.

Yo, Timmy, only in the Bizzaro World do people get paid bonuses for destroying a company and the economy.

[rocktivity]

2. He, America's highest-ranking lawyer, asked for and deferred to a legal analysis

with EXACTLY the answer he wanted? Kind of like what Bush did with torture? Make an example of him, Barack--give him the boot!

:headbang:
rocktivity

[Bluenorthwest]

7. The Sec of Treasury

is not the highest ranking lawyer. Attorney General holds that place. Eric Holder. Geithner should go, but he's not the cheif lawyer, nor highest ranking. The Pres in in fact an attorney...

[Junkdrawer]

3. ...reduce the amount of the next taxpayer handout to AIG from $30 billion to $29.835 billion.....

Oh my.

:rofl:

[formercia]

4. Isn't that brilliant?

:rofl:

How much of a retention bonus did Timmy get?

[Junkdrawer]

8. Geithner's a dead man walking....

Every Republican politician and commentator will be repeating Tim's suggestion for weeks....

[notadmblnd]

9. One of the heads reposted last night that Rham said Tims job is safe

The commentator on with the head said. If Rham is saying his job is safe, then it's a sure sign he about to go. Let's hope so.

Is it Rham or Rahm?

[On the Road]

10. That's the Amount of the Bonuses

Are you laughing that they're so trivial in the grand scheme of things?

[Junkdrawer]

12. You can't see the humor? It's like a hood saying "I'm not giving the $10 bucks I stole back....

but I'll tell you what: Deduct $10 from the next $1000 protection payment."

[On the Road]

14. The Poster Appeared to be Implying

that Geithner only went after a fraction of a percent of what AIG had "stolen." He went after the full amount of the bonuses, which themselves happened to be a small fraction of AIG losses.

[Winterblues]

13. In the Grand Scheme of things a person who steals a hundred dollars goes to jail

for quite some time while tax payers are being bilked out of billions and loudly bragging about putting millions into their pockets..While to some, a few measly millions is not much money, try telling that to someone earning $12 bucks an hour.

[mod mom]

5. It's the problem with having insiders protecting their own. Just who is he looking out for

the American taxpayer or his future employers? His "deer caught in the headlights" look doesn't especially exude confidence. "Strong objections" doesn't muster it in these trying times. I don't understand how these bonuses can be okay with the administration. Geithner needs to answer some tough questions.

[rurallib]

6. sounds like one of HArry Reid's 'strongly worded letters.'

[gratuitous]

11. Hey, it's Be Kind to Robber Barons Week

Ninth week in a row.