AIG is Obama's worst nightmare! The teleprompter didn't tell me that Timothy Geithner crafted some of the AIG bailout deal!

Most people didn't know that Timothy Geithner crafted some of the legislation dealing with the AIG bailout. Remember Timothy Geithner was the president of the Federal Reserve Bank of New York, from 2003-2009. Geithner is now the current United States Secretary of the Treasury.

http://www.federalreserve.gov/newsevents/press/other/20080916a.htm

Federal Reserve Press Release
Release Date: September 16, 2008
For release at 9:00 p.m. EDT

The Federal Reserve Board on Tuesday, with the full support of the Treasury Department, authorized the Federal Reserve Bank of New York to lend up to $85 billion to the American International Group (AIG) under section 13(3) of the Federal Reserve Act. The secured loan has terms and conditions designed to protect the interests of the U.S. government and taxpayers.

The Board determined that, in current circumstances, a disorderly failure of AIG could add to already significant levels of financial market fragility and lead to substantially higher borrowing costs, reduced household wealth, and materially weaker economic performance.

The purpose of this liquidity facility is to assist AIG in meeting its obligations as they come due. This loan will facilitate a process under which AIG will sell certain of its businesses in an orderly manner, with the least possible disruption to the overall economy.

Why is Geithner attacking AIG along with members of Congress? I guess they didn't know where the money was going either!

http://www.latimes.com/news/nationworld/washingtondc/la-fi-aig-taxes18-2009mar18,0,3110160.story

March 17, 2009

"Two weeks ago, the president's spokesman said that they were confident that they knew how every dime was being spent at AIG," House Minority Leader Rep. John Boehner (R- Ohio) said this morning.

"Well clearly, they didn't know what they were talking about," he said. "I think this is outrageous, and I think the American people are rightly outraged that their tax money is going to pay bonuses to the very people that got this company in trouble."

At least one Republican is saying something.

UPDATE:
Apparently the administration did know about the bonuses long ahead of time. This comes after many members of Congress had attempted to "run" from this.

Here is a link to the AIG 2008 Employee Retention Plan:
http://news.findlaw.com/hdocs/docs/aig/bonus-retention-plan2008.html

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