Free Markets, Free People
AIG Bonuses: Dodd Cracks, Geithner Knew
Jennifer Rubin at Commentary magazine’s blog rounds up the latest info on who knew what about the AIG bonuses. It’s not pretty, but, of course, we knew it wouldn’t be.
The bottom line: Dodd, after denying it, now admits he and the administration cooked up the language which afforded AIG some protection ( until the firestorm hit) to grant the bonuses.
Time magazine also reports:
Although Treasury Secretary Timothy Geithner told congressional leaders on Tuesday that he learned of AIG’s impending $160 million bonus payments to members of its troubled financial-products unit on March 10, sources tell TIME that the New York Federal Reserve informed Treasury staff that the payments were imminent on Feb. 28. That is 10 days before Treasury staffers say they first learned “full details” of the bonus plan, and three days before the Administration launched a new $30 billion infusion of cash for AIG. [Emphasis mine.--EDF]
It’s such a relief to have the “best and brightest” running the show, isn’t it?