Some Geithner Resignation Talk

Many Republicans are getting closer to asking for Treasury Secretary Geithner’s resignation. Geithner’s call to AIG Chairman Edward Liddy last Wednesday where he ’supposedly’ demanded that Liddy renegotiate AIG’s current bonus structure is raising questions about Geithner’s credibility.

The burgeoning bonus controversy raged Tuesday as Sen. Richard Shelby, ranking Republican on the Banking Committee, charged that Geithner had known about the AIG bonus payments before they were made and failed to stop them.

“I don’t know what President Obama knew about it,” Shelby said. “I’d say he probably didn’t know about it.”

Shelby said that Geithner “either knew or should have known what was going on. We need to know, what are the details of this? When were the bonuses signed up? Who’s getting it?”

The Alabama senator stopped short of calling for Geithner’s resignation, saying “he’s under fire from all sides now.”

….”this is just another example of where he seems to be out of the loop. Treasury should have let the American people know about this.” Huffington Post:

To pretend Secretary Geithner didn’t know about AIG’s bonuses is naive. He was after all the architect of the original AIG bailout that needless to say has been a complete disaster.

The whole AIG (AIG) situation raises some serious questions, not only about Geithner’s credibility, but also about his clarity at time when markets desperately need transparency and certainty. Up until couple of days ago the Treasury Secretary had been quietly working against the release of AIG’s “counterparty” bailout beneficiaries list. Coincidentally, Goldman Sachs (GS) was at the top of that list as the largest counterparty recipient. That confirmed rumors that had been circulating for the past few months alluding to reports that in September 2008, Geithner, with then Treasury Secretary Henry Paulson, engineered an AIG bailout in which Paulson’s own firm, Goldman Sachs (by the way, Geithner is a Goldman guy through-n-through, and a protege of uber-Goldman guy Robert Rubin) secretly and without taxpayer’s knowledge received $12.9 billion.

Geithner has so far proven to be nothing more than just another glorified bank lobbyist (like his predecessor, Paulson) who is in way over his head. He has yet to produce a coherent plan to fix the banking system and has convinced no one with his actions, uninspiring oratory and non-existent personal charisma, that he’s the right man to lead the nation out of the crisis.

Comments

[Jakester:]

If he resigns, can we get someone who is not from Goldman Sachs? The fact that the tax payer is bailing out Goldman Sachs through AIG while the partners continue to reap huge bonuses is the most despicable aspect of the current crisis. This was to be expected when GS acts as a farm system for the Treasury Secretary position.

Mar 18 12:07 PM

[foxy 44:]

your country top management like crab basket, but same accross the world.

Mar 18 12:10 PM

[foxy 44:]

next, could be GS former guy, indeed!!!

Mar 18 12:12 PM

[3 degrees o...:]

Remember just a few months ago when everyone wanted to overlook Geithner's tax problems because he was the only guy who could leads us out of this mess? Buyers remorse anyone?

Mar 18 12:22 PM

[fireball:]

let obamamama resign instead. if he did not know he has proven his unfitness one more time. did he know the tax dollars would flood foriegn banks? did he know his senate seat was for sale? did he know the big-donaters (banksters) got bonuses that make aig look like minor criminals? if he was ignorant he is not competent. if he knew-time to prosecute.
i have no problem with mega-bonuses when the company makes the money, if that is how they choose to spend it. i have a big problem with tax funded bailouts and a bigger problem with tax funded bailout bonuses.
obamamama is operating true to form with orwell's pigs. socialism?
imagine a boot stomping on a human face forever.

Mar 19 11:09 AM