Thursday, March 19, 2009


Jesse posts on the level of knowledge, conflict-of-interest, and straight-out culpability of various D.C. insiders in the whole AIG bonus scandal. Just to remind you (in case you've lost sight of the issue), we're talking about the billions of dollars that AIG executives and institutional counter-parties received from the American people as a reward for making stupid, if not fraudulent decisions that already made them rich at the expense of everyone else. That scandal.

And among the names implicated? Apart from those we already know like Hank "Goldman Sachs" Paulson, "Helicopter" Ben Bernanke, "Heckuva Job" Timmy Geithner, and Larry "Winter of Our Discontent Turned to Inglorious" Summers? Well, this time it's just a couple fellas named Chris Dodd and Barack Obama. A few highlights, and then I urge to read Jesse's post, which is short and contains links:
while the Senate was constructing the $787 billion stimulus last month, Dodd added an executive-compensation restriction to that very bill. The provision, now called “the Dodd Amendment” by the Obama Administration, provides an “exception for contractually obligated bonuses agreed on before Feb. 11, 2009.”

* * *
Obama may be grandstanding about AIG’s bonuses now, but it’s worth noting that Obama himself is the second biggest benefactor of AIG political contributions. Second only to Senator Chris Dodd, who is quietly trying to tip-toe away from legislation he inserted into Obama’s “stimulus” spending spree that protected AIG’s bonuses.
Meanwhile, Paul Kanjorski claims he alerted Treasury about this bonus issue six or seven times in the last few weeks. And finally, Jesse reminds us that last September was the key decision point on bailing out AIG -- when the only non-official present at the meeting where Treasury/The Fed decided to bail out AIG was none other than Lloyd Blankfein, the Chairman of Goldman Sachs. And as we knew then, and certainly know now, Goldman Sachs is a major counter-party at risk with the AIG Financial Products Division.

None of this is mysterious now, and it wasn't then.



Blogger Pro said...

You are right, it's a big mess.

If you thought it couldn't get any worse than Bush. The dems are spending more and making mistakes of the grossest incompetence. Here is the latest
(quite shocking) of their trillion dollar blunders:

By the way the bonuses are not new. Obama is only getting mad because now the public knows. It was widely reported in January. Do a google search for 'AIG Said to Offer $1 Billion in Retention to Workers' and you will see time stamps from January.

9:37 AM  
Blogger DED said...

Is it too soon to predict big Republican Congressional gains in 2010? If the economy hasn't turned around by then and the GOP figures out how to harp on pork and bailouts without coming across as shrill or hypocritical, they might reverse their losses from the past two elections.

I realize Dodd is in the spotlight right now and appears vulnerable, but CT hasn't had a Republican Senator in 20 years. I think that the mere fact that polling already shows a deadlock between Dodd and Simmons speaks volumes in this primarily blue state.

3:31 PM  
Blogger Mr Furious said...

Agreed DED. First the GOP has to figure out how to stop lighting themselves on fire...iIf they do—and the Dems really haven't shown any new acumen in battling them—they'll romp back into contention if not control.

4:33 PM  

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