Time to Get Geithner under Oath on AIG

[kpete]

Time to Get Geithner under Oath on AIG
By: emptywheel Tuesday March 17, 2009 11:35 am

......after reading the letter Andrew Cuomo just sent to Barney, I think the guy we need under oath is Tim Geithner. After all, over the weekend Geither allowed himself to be convinced that AIG had to pay out its retention bonuses. But today, we learn the following:
http://graphics8.nytimes.com/images/2009/03/17/business/CuomoLetter.pdf

* (Cuomo's) Office has reviewed the legal opinion that AIG obtained from its own counsel, and it is not at all clear that these lawyers even considered the argument that it is only by the grace of American taxpayers that members of Financial Products even have jobs, let alone a pool of retention bonus money.

* AIG was able to bargain with its Financial Products employees since these employees have agreed to take salaries of $ I for 2009 in exchange for receiving their retention bonus packages. The fact that AIG engaged in this negotiation flies in the face of AIG's assertion that it had no choice but to make these lavish multi-million dollar bonus payments.

* Numerous individuals who received large "retention" bonuses are no longer at the firm (including one person whose bonus of $4.6 million made him one of the top seven receipients of bonuses).

* The contracts under which AIG decided to make these payments ... contain a provision that required most individuals' bonuses to be 100% of their 2007 bonuses.

Now, presumably, Tim Geithner knew all these details from his conversations with Liddy over the weekend. Hell, he should know the details from when, as NY Fed President he negotiated the bailout last year.

Yet he came to the American people and claimed we simply had to pay these bonuses. Why?

http://emptywheel.firedoglake.com/2009/03/17/time-to-get-geithner-under-oath-on-aig/

[burythehatchet]

1. I'm really surprised to learn that the criminals who put us here are not doing

the right thing. Who would have thought?

[Junkdrawer]

2. Obama needs a Do Over on Treasury Secretary....

The stench from the cesspool is getting too bad to ignore...

[Hubert Flottz]

3. Why?

Because he's one of them...

[riderinthestorm]

4. Even more importantly, Geithner knew that AIG was paying the counterparties at 100%

as Spitzer pointed out. That's just breathtaking and as leveymeg has pointed out in his other, most excellent thread, all the same players are helping themselves to the taxpayer trough on a truly frightening scale.

Geithner has to have known. Way back. When the Bush Admin was starting the bailouts WHO was getting all that cash, Geithner was one of the key players in the negotiations that got these recipients these incredible deals.

Geithner's a big part of the problem - I hate to sound melodramatic but his role comes across as almost like a mole. How much does Obama know about these machinations? Does he/did he know about this stuff? How quickly will he move on Geithner - I guess that will be an interesting answer for me.

[JDPriestly]

5. Personally, I think Obama is already moving on Geithner.

That is how I understand his statement about having instructed Geithner to do everything possible to get the money back. Geithner's job is on the line, as I see it. Maybe this is wishful thinking, but this is how politicians work.

[tosh]

6. I'm "wishful thinking" that you're right. nt

[chimpymustgo]

7. ANd what about Summers? ALL these guys were/are IN on this!!! Right now, they're just trying to

get us to put down the pitchforks. They'll appoint a blue-ribbon panel. The banksters will get every billion they ask for. We'll write the checks.

[slipslidingaway]

8. My sentiments as well...

"...they're just trying to get us to put down the pitchforks...."

[truedelphi]

9. It is my understanding that should companies like AIG be put under receivership

Than the previous contracts would be null and void.

Why this isue of putting the Mega Corproations into receivorship is being ignored, I don't know. But if it was the personal fortunes of Geithner, Summers, Rubin, Gensler and Obama being forked over, you better believe that is the number one method that they would be using to set the situation straight.

but oh well, it is only the taxpayers' monies. Nothing to see here, get those bonus checks out today.

[westcor]

10. interesting

weird how you put a guy who lied about his taxes, in charge of the IRS; then people are surprised when he lies....

[chimpymustgo]

11. Interesting indeed. Geithner is a proven liar and cheat. Guarding the henhouse.

[SoCalDem]

12. Treasury needs ECONOMISTS..not "former wall streeters"..n/t

[polichick]

13. I agree - those who understand the culture but are not of it.

[flyarm]

14. I have a lot of questions ...

I have a lot of questions ...

Tim Geithner worked for 3 years at Kissingers firm..and then the CFR.........

Look into the back ground of Geithners dad , Peter Geithner and his ties to Obama's mom and step dad!!

Google is your friend!!


See Obama sent Kissinger To Russia shortly after becoming president to represent the Obama administration in Russia..
Kissinger who held positions with Nixon, Ford and Reagan !!!!!!!!!!!!

this kissinger:

http://www.youtube.com/watch?v=GThfWVCfjVo&eurl=http ://...

"There is a need for a new world order," Kissinger told PBS interviewer Charlie Rose last year, "I think that at the end of this administration, with all its turmoil, and at the beginning of the next, we might actually witness the creation of a new order – because people looking in the abyss, even in the Islamic world, have to conclude that at some point, ordered expectations must return under a different system."


This is the Kissinger Obama sent to Russia........representing his administration..

http://www.theatlantic.com/issues/82may/hershwh2.htm

Kissinger and Nixon in the White House
by Seymour M. Hersh


http://www.commondreams.org/views02/0611-03.htm


and that is just for starters!!

and from another poster here at du....thank you Jambalaya

http://www.democraticunderground.com/discuss/duboard.ph ...

Larry Summers and California Energy "crisis" / Enron

During the California energy crisis of 2000, then-Treasury Secretary Larry Summers teamed with Alan Greenspan and Enron executive Kenneth Lay to lecture California Governor Gray Davis on the causes of the crisis, explaining that the problem was excessive government regulation.<8> Under the advice of Kenneth Lay, Summers urged Davis to relax California's environmental standards in order to reassure the markets.


ohhh ..and don't miss this...........


WSJ: Citi's Chief Economist Leaves for Treasury Post


Source: The Wall Street Journal

Citigroup Inc.'s chief economist is leaving the New York company for a job at the U.S. Treasury Department, according to an internal Citigroup memo.

Lewis Alexander, who has been at Citigroup since 1999 and before that worked at the Federal Reserve, will head to Treasury "to work on domestic financial issues," said the Citigroup memo, which was sent Tuesday.

According to a government official, Mr. Alexander will be a counselor to Treasury Secretary Timothy Geithner. Mr. Alexander and a Treasury spokesman weren't immediately available to comment Tuesday. A Citigroup spokesman declined to elaborate on the company's memo.
(...)
Mr. Alexander's role as Citigroup's chief economist didn't entail significant management responsibilities. But his optimistic economic forecasts colored executives' views that the U.S. was unlikely to face a prolonged slump.

Read more: http://online.wsj.com/article/SB123732747181462245.html

anyone getting that tingle down their leg yet???????