Video: SIG TARP Barofsky Blames Geithner For AIG Bonus Rip-Off
We said it in April and we'll say it again, Treasury Secretary Tim Geithner lied under oath when he told Congress he knew nothing about the $168 million in retention bonuses that were paid to AIG employees this Spring. Senator Dodd has said that 6 weeks prior to the date Geithner claims he first heard of these bonuses, that senior Treasury officials were not only aware but they also lobbied him to introduce an amendment that would allow these payouts to occur.
SIG TARP Neil Barofsky testified before the House Oversight Committee yesterday and came to a different conclusion. His report blames lack of concern and communication within Treasury. Essentially he accepts Geithner's excuse that no other Treasury or Fed officials informed him until just days before the payments were to be made. Still his report blames Geithner and Treasury for the mistakes and lack of oversight. And I would imagine that privately Barofsky would concede that it's simply not plausible to believe that Geithner was also not aware of these payouts.
We've got the 3 best clips from Barofsky's testimony yesterday and some choice quotes.
Watch (Videos are below...Don't click unless you are coming from email.)
- Committee Chairman Edolphus Towns (D., N.Y.), asked Mr. Barofsky if he would characterize the lack of cooperation as a break-down in communications between the Treasury and the New York Federal Reserve.
- "I think that would be kind, to have it as a breakdown," Mr. Barofsky said. "Communications were virtually nonexistent."
- As guardians of the taxpayer-funded bailout, the Treasury had specific responsibilities to oversee executive compensation that the New York Fed did not, Mr. Barofsky said. To the New York Fed, the $168 million in retention payments was not significant compared to the size of the government's $180 billion bailout of the insurance company and did not identify it as a politically explosive issue.
- "They didn't think it was that big a deal -- $168 million was a drop in the bucket," Mr. Barofsky said. "Their concern was paying back the debt. The Federal Reserve was looking at this as a creditor."
- Mr. Barofsky agreed with lawmakers' comments that "retention payments" paid to AIG administrative employees, including to a file administrator and kitchen assistant, weren't necessary to keep irreplaceable employees from resigning.
- "Somebody who made the decision to give these bonuses made the decision to make everyone happy and not to act in the interest of American taxpayers," said ranking member Rep. Darrell Issa (R., Calif.).
Below are three clips from Barofsky's testimony yesterday.
Click To Scroll Our List Of Recent Stories
Thank you!
PLEASE email, facebook, re-tweet, share and take our stories with you when you leave. Our only weapon against the madness is GREATER AWARENESS. In 2009, one by one, you have shared our stories 8 million times. Just 2 emails sent by every single person who stops by, and you'll be contributing greatly to the formation an aggressive, educated voter base that understands the economic peril of our disastrous debt and deficit policies. Thank you for helping.
Oct 15, 2009 at 1:04 PM
Reader Comments (11)
http://online.wsj.com/article/SB125552964492784877.html
http://www.salon.com/opinion/greenwald/2009/03/17/dodd/index.html
http://abcnews.go.com/Politics/barofsky-blames-treasury-aig-bonus-fiasco/Story?id=8827977&page=1
http://www.ft.com/cms/s/0/f012c4b2-b8f6-11de-98ee-00144feab49a.html
http://www.businessinsider.com/aig-executives-have-paid-back-only-19-million-of-45-million-of-pledged-bonus-repayments-2009-10
http://dailybail.com/home/the-triumphant-return-of-tricky-dick-treasury-secretary-tim.html
Of Bonuses, Lies And Videotape
http://dailybail.com/home/bailout-aig-breaking-news-tim-geithner-might-not-survive-the.html
Treasury Secretary Tim Geithner Falls On His Sword
http://dailybail.com/home/aig-bonus-bailout-news-treasury-secretary-tim-geithner-falls.html
Get a good job with good pay and youre okay.
Money, its a gas.
Grab that cash with both hands and make a stash.
New car, caviar, four star daydream,
Think Ill buy me a football team.
Money, get back.
Im all right jack keep your hands off of my stack.
Money, its a hit.
Dont give me that do goody good bullshit.
The best things in life are free
But you can keep 'em for the birds and bees
Now give me money, that's what I want
That's what I want, yeah
That's what I want
Your lovin' give me a thrill
But your lovin' don't pay my bills
Now give me money, that's what I want
That's what I want, oh yeah
That's what I want
http://www.businessinsider.com/neil-barofsky-blames-geithner-for-aig-bonus-rip-off-2009-10
don't put your money in anything that isn't insured by FDIC.
contributions to uninisured accounts ( like 401K ) are subject to
oops.... sorry.... we used it for bonuses....