Clearly. I suspect that early fears of "nationalizing" and "socialism" made Congress attempt to be hands-off in matters of influencing the companies. "We'll just give you the resources to fix this, but not tell you how to go about your business". But the government didn't think this out and perhaps now are starting to realize that specific changes needed to be required of the companies to get the bailout.
Hmm... This coming from someone who uses the sources from the same organization that has been in question. Whats wrong with this picture?
MM, vball is dead on. I'm trying to refrain from pinning any of this on Obama, but to suggest that this took Geithner by surprise flies in the face of the facts. Geithner, as head of the NY Fed was in on all discussions regarding the AIG bailout at the request of the Bush Administration and was a key player. It's no coincidence that he's being very quiet through all of this bonus "outrage". The existence of the retention contracts was no secret and AIG had been totally above board about the upcoming contractual obligations.
Im not suggestion that Geithner didnt know about it. I believe he did and ignored it. Never was sold on him to begin with, due to his prior work. As I said the other day, conditions should have accompanied the bailout funds.
I don't find it amazing at all. Geithner was right in the middle of the CEO switch over and ran the bank that gave an $85 billion dollar loan. For him to now claim that he had no knowledge of potential policy issues, particularly in the area of bonus payments, is silly at best. Even if it were true, then I am appalled that he is now the US Treasury Secretary. Alicia Silverstone has officially been replaced. And Congress DID pass a program without any thought to what it all meant or what options they had available. To come back later with feigned outrage makes them look like economic noobs. They all have a hand in the pot and no taxpayer is safe.
Cant say that I disagree. Its just as bad as Paulson being allowed to help write the TARP bill coming from Goldman Sachs
Well that's the crux of the matter isn't it? And, who should have levied those conditions? Dodd? Geithner? Those contracts were in place in January 2008 and their existence was fully disclosed.
