Geithner and AIG

I guess there’s only one guy to blame for the AIG bonuses, so next time Obama revs up the populist righteous indignation he knows who to direct it at…. 

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.

I have to say, of all the changes the new Administration has implemented so far the Treasury is the least comforting – which is probably the absolutely worst possible thing Obama could have done at this point (within reason).  Geithner is not a reassuring figure and things like this just make the whole operation look bad.  I guess I have a hard time understanding why more hasn’t been done to at least keep up appearances.  Half of this is illusion.  The government needs to provide the illusion of confidence if they lack the real thing.  This isn’t happening.  People are nervous, and rightfully so.

Well, some people are nervous.  Others are making out like bandits….


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