Geitner's AIG solution holds no one accountable

[kaygore]

Geitner has now proposed to reduce the federal taxpayers' money to AIG by the $165 million that AIG is paying those executives in the division that made the credit default swaps and derivatives. Geitner misses the point: Taxpayers are as angry or more so over financially rewarding those whose recklessness and greed have destroyed our economy. Geitner doesn't get it. Geitner needs to go!

[Median Democrat]

1. Reminder - AIG Bailout Began In September 2008 Due To Bush's Policies of Deregulation

The one problem about bonus-gate is that it obscures the fact that the whole AIG fiasco is the culmination of years of hands-off regulation by the Bush administration. The bonus contracts were handed out during the Bush administration. The ponzi scheme that formed the AIG business model was formed during the Bush presidency. The AIG collapse took place under the Bush administration. Yet, these cogent facts are ignored as the media focuses on the bonuses, which constitute less than two percent of the total bailout, and tries to pin this on the Obama administration. Hey, are we forgetting how AIG went bust in the first place? It was due to deregulation, which is continually championed by Republicans even now. Worse, the Bush administration knew about AIG's troubles long before it finally bailed them out in September 2008, but did nothing.

Yet, the media focuses on the bonuses AND their are calls for Tim Geithner to resign? WTF about Paulson and Bernanke who slept walk through the events the lead to the crisis. Where were the calls for resignation by the corporate media back then? Again, the media shows the double standard being applied to Democratic administrations.

NY Times:

/snip

WASHINGTON — Fearing a financial crisis worldwide, the Federal Reserve reversed course on Tuesday and agreed to an $85 billion bailout that would give the government control of the troubled insurance giant American International Group.

The decision, only two weeks after the Treasury took over the federally chartered mortgage finance companies Fannie Mae and Freddie Mac, is the most radical intervention in private business in the central bank’s history.

With time running out after A.I.G. failed to get a bank loan to avoid bankruptcy, Treasury Secretary Henry M. Paulson Jr. and the Fed chairman, Ben S. Bernanke, convened a meeting with House and Senate leaders on Capitol Hill about 6:30 p.m. Tuesday to explain the rescue plan. They emerged just after 7:30 p.m. with Mr. Paulson and Mr. Bernanke looking grim, but with top lawmakers initially expressing support for the plan. But the bailout is likely to prove controversial, because it effectively puts taxpayer money at risk while protecting bad investments made by A.I.G. and other institutions it does business with.

What frightened Fed and Treasury officials was not simply the prospect of another giant corporate bankruptcy, but A.I.G.’s role as an enormous provider of esoteric financial insurance contracts to investors who bought complex debt securities. They effectively required A.I.G. to cover losses suffered by the buyers in the event the securities defaulted. It meant A.I.G. was potentially on the hook for billions of dollars’ worth of risky securities that were once considered safe.

If A.I.G. had collapsed — and been unable to pay all of its insurance claims — institutional investors around the world would have been instantly forced to reappraise the value of those securities, and that in turn would have reduced their own capital and the value of their own debt. Small investors, including anyone who owned money market funds with A.I.G. securities, could have been hurt, too. And some insurance policy holders were worried, even though they have some protections.

/snip

[NickInNY]

4. Move to Europe

If you want a society of totally government regulated business, then move to a socialist country in Europe. Oh wait, no need, that's where we're headed.

If you want to lay blame, lay it on Jimmy Carter and Bill Clinton, who offered tons of incentives and passed laws to force banks to give loans to high risk borrowers.

[burythehatchet]

5. Welcome to DU, Nick. I think you will make it to 4 posts.

[TahitiNut]

7. Who left the screen door open?

Call the Orkin man. :eyes:

[Lasher]

2. A diversion at best.

The more I learn about Geitner the less I like him.

[FrenchieCat]

3. A shiny object is all some people need!

The only thing you are doing at this point is handing the Republicans an issue.
They created the fucking mess,
and now they want this administration to pay for it.

Replacing the Secretary of the Treasurer based on some Bonuses is going to severely
hurt the recovery, and hurt this President, and by extension the Democrats.

Election 2010-
Issue #1 - AIG Bail out and Bonuses

Who voted AGAINST the original Bail Out?

House Vote On Passage: H.R. 1424 <110th>
List of those who voted NAY!

Alabama
Nay AL-1 Bonner, Jo (R)
Nay AL-2 Everett, Terry (R)
Nay AL-3 Rogers, Michael (R)
Nay AL-4 Aderholt, Robert (R)
Nay AL-6 Bachus, Spencer (R)
Alaska None
Arizona
Not Voting AZ-1 Renzi, Rick (R)
Nay AZ-2 Franks, Trent (R)
Nay AZ-3 Shadegg, John (R)
Nay AZ-6 Flake, Jeff (R)
Arkansas
Nay AR-3 Boozman, John (R)
California
Nay CA-2 Herger, Walter (R)
Nay CA-3 Lungren, Daniel (R)
Nay CA-4 Doolittle, John (R)
Not Voting CA-6 Woolsey, Lynn (D)
Nay CA-19 Radanovich, George (R)
Nay CA-21 Nunes, Devin (R)
Nay CA-22 McCarthy, Kevin (R)
Nay CA-25 McKeon, Howard (R)
Nay CA-26 Dreier, David (R)
Nay CA-40 Royce, Edward (R)
Nay CA-41 Lewis, Jerry (R)
Nay CA-42 Miller, Gary (R)
Nay CA-44 Calvert, Ken (R)
Nay CA-46 Rohrabacher, Dana (R)
Nay CA-48 Campbell, John (R)
Nay CA-49 Issa, Darrell (R)
Nay CA-50 Bilbray, Brian (R)
Nay CA-52 Hunter, Duncan (R)
Colorado
Not Voting CO-4 Musgrave, Marilyn (R)
Nay CO-5 Lamborn, Doug (R)
Nay CO-6 Tancredo, Thomas (R)
Connecticut NONE
Delaware NONE
Florida
Nay FL-1 Miller, Jeff (R)
Nay FL-4 Crenshaw, Ander (R)
Not Voting FL-5 Brown-Waite, Virginia (R)
Nay FL-6 Stearns, Clifford (R)
Nay FL-7 Mica, John (R)
Not Voting FL-8 Keller, Ric (R)
Nay FL-9 Bilirakis, Gus (R)
Nay FL-10 Young, C. W. (R)
Nay FL-12 Putnam, Adam (R)
Nay FL-14 Mack, Connie (R)
Nay FL-15 Weldon, David (R)
Nay FL-24 Feeney, Tom (R)
Georgia
Nay GA-1 Kingston, Jack (R)
Nay GA-3 Westmoreland, Lynn (R)
Nay GA-6 Price, Tom (R)
Nay GA-7 Linder, John (R)
Nay GA-8 Marshall, James (D)
Nay GA-9 Deal, Nathan (R)
Nay GA-10 Broun, Paul (R)
Nay GA-11 Gingrey, John (R)
Hawaii NONE
Idaho
Nay ID-1 Sali, Bill (R)
Nay ID-2 Simpson, Michael (R)
Illinois
Not Voting IL-1 Rush, Bobby (D)
Nay IL-6 Roskam, Peter (R)
Nay IL-16 Manzullo, Donald (R)
Nay IL-19 Shimkus, John (R)
Indiana
Nay IN-3 Souder, Mark (R)
Nay IN-4 Buyer, Stephen (R)
Nay IN-5 Burton, Dan (R)
Nay IN-6 Pence, Mike (R)
Iowa
Nay IA-4 Latham, Thomas (R)
Nay IA-5 King, Steve (R)
Kansas
Nay KS-1 Moran, Jerry (R)
Kentucky
Nay KY-1 Whitfield, Edward (R)
Nay KY-2 Lewis, Ron (R)
Nay KY-4 Davis, Geoff (R)
Nay KY-5 Rogers, Harold (R)
Louisiana
Nay LA-4 McCrery, James (R)
Nay LA-5 Alexander, Rodney (R)
Maine NONE
Maryland
Not Voting MD-4 Wynn, Albert (D)
Nay MD-6 Bartlett, Roscoe (R)
Massachusetts NONE
Michigan
Nay MI-2 Hoekstra, Peter (R)
Nay MI-3 Ehlers, Vernon (R)
Nay MI-4 Camp, David (R)
Not Voting MI-7 Walberg, Timothy (R)
Nay MI-8 Rogers, Michael (R)
Nay MI-11 McCotter, Thaddeus (R)
Minnesota
Nay MN-2 Kline, John (R)
Nay MN-6 Bachmann, Michele (R)
Mississippi NONE
Missouri
Nay MO-2 Akin, W. (R)
Nay MO-6 Graves, Samuel (R)
Nay MO-7 Blunt, Roy (R)
Nay MO-9 Hulshof, Kenny (R)
Montana
Nay MT-0 Rehberg, Dennis (R)
Nebraska
Nay NE-1 Fortenberry, Jeffrey (R)
Nay NE-2 Terry, Lee (R)
Nay NE-3 Smith, Adrian (R)
Nevada
Nay NV-2 Heller, Dean (R)
Nay NV-3 Porter, Jon (R)
New Hampshire NONE
New Jersey
Nay NJ-4 Smith, Christopher (R)
Nay NJ-5 Garrett, Scott (R)
New Mexico
Nay NM-1 Wilson, Heather (R)
Nay NM-2 Pearce, Steven (R)
New York
Not Voting NY-15 Rangel, Charles (D)
Nay NY-26 Reynolds, Thomas (R)
Nay NY-29 Kuhl, John (R)
North Carolina
Nay NC-3 Jones, Walter (R)
Nay NC-5 Foxx, Virginia (R)
Nay NC-6 Coble, Howard (R)
Nay NC-9 Myrick, Sue (R)
Nay NC-10 Mchenry, Patrick (R)
North Dakota NONE
Ohio
Nay OH-1 Chabot, Steven (R)
Nay OH-2 Schmidt, Jean (R)
Nay OH-3 Turner, Michael (R)
Nay OH-4 Jordan, Jim (R)
Nay OH-5 Latta, Robert (R)
Nay OH-8 Boehner, John (R)
Nay OH-12 Tiberi, Patrick (R)
Oklahoma
Nay OK-3 Lucas, Frank (R)
Nay OK-4 Cole, Tom (R)
Nay OK-5 Fallin, Mary (R)
Oregon
Nay OR-2 Walden, Greg (R)
Pennsylvania
Nay PA-5 Peterson, John (R)
Nay PA-9 Shuster, William (R)
Nay PA-16 Pitts, Joseph (R)
Rhode Island NONE
South Carolina
Nay SC-1 Brown, Henry (R)
Nay SC-2 Wilson, Addison (R)
Nay SC-3 Barrett, James (R)
Nay SC-4 Inglis, Bob (R)
South Dakota NONE
Tennessee
Nay TN-1 Davis, David (R)
Nay TN-2 Duncan, John (R)
Nay TN-7 Blackburn, Marsha (R)
Texas
Nay TX-1 Gohmert, Louis (R)
Not Voting TX-2 Poe, Ted (R)
Nay TX-3 Johnson, Samuel (R)
Nay TX-4 Hall, Ralph (R)
Nay TX-5 Hensarling, Jeb (R)
Nay TX-6 Barton, Joe (R)
Nay TX-7 Culberson, John (R)
Nay TX-8 Brady, Kevin (R)
Nay TX-10 McCaul, Michael (R)
Nay TX-11 Conaway, K. (R)
Nay TX-12 Granger, Kay (R)
Nay TX-13 Thornberry, William (R)
Nay TX-14 Paul, Ronald (R)
Nay TX-15 Hinojosa, Rubén (D)
Nay TX-19 Neugebauer, Randy (R)
Not Voting TX-20 Gonzalez, Charles (D)
Nay TX-22 Lampson, Nicholas (D)
Nay TX-24 Marchant, Kenny (R)
Nay TX-26 Burgess, Michael (R)
Not Voting TX-30 Johnson, Eddie (D)
Nay TX-31 Carter, John (R)
Nay TX-32 Sessions, Peter (R)
Utah
Nay UT-1 Bishop, Rob (R)
Nay UT-3 Cannon, Christopher (R)
Vermont
Not Voting VT-0 Welch, Peter (D)
Virginia
Nay VA-1 Wittman, Rob (R)
Nay VA-2 Drake, Thelma (R)
Nay VA-4 Forbes, James (R)
Nay VA-5 Goode, Virgil (R)
Nay VA-6 Goodlatte, Robert (R)
Nay VA-7 Cantor, Eric (R)
Nay VA-10 Wolf, Frank (R)
Washington
Nay WA-4 Hastings, Doc (R)
Nay WA-5 McMorris Rodgers, Cathy (R)
Nay WA-8 Reichert, Dave (R)
West Virginia NONE
Wisconsin
Nay WI-1 Ryan, Paul (R)
Nay WI-6 Petri, Thomas (R)
Wyoming
Nay WY-0 Cubin, Barbara (R)
http://www.govtrack.us/congress/vote.xpd?vote=h2008-101


We waited 8 fucked up years, and we finally get someone in office who listens to us,
and what are we going to do....fuck it up for the future.

say goodbye to any reforms.
We are working hard to tie this President's hands!

Thanks!

[Eric J in MN]

6. So instead of another $30 billion he's giving them $29,835,000,000.

And the individuals still get huge salaries while the US props up their company.

Whether they keep the bonuses depends on what happens in Congress soon with a tax plan.