Treasury Secretary Timothy Geithner said Thursday that he takes responsibility for knowing the stimulus legislation had a loophole that would allow bailed-out insurance giant American International Group to keep its bonuses.
In an interview with CNN’s Ali Velshi, Geithner said the Treasury Department did talk to Sen. Chris Dodd about a clause he put forth that would have strictly limited executive bonuses.
The Treasury Department was concerned that legislation that would restrict contractual bonuses would not hold up to legal challenges, Geithner said.
“We expressed concern about this specific version. We wanted to make sure it was strong enough to survive legal challenge,” Geithner said.
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- Use the Bloomberg command
NH BLG_DEALBREAKER <GO>
to access Dealbreaker
Will Dodd pay back his Fannie and Freddie and Goldman and Morgan and JPM and other campaign donations?
@1- why the fuck should he repay his gs/ms/jpm donation? beat a new drum.
Will Treasury Secretary pay his taxes this year? Only Turbo Tax knows for sure!
The Chicago machine in damage control mode. Take all the heat off of elected politicians and pass on to civil servants. Compensate them on the back end.
so Geitner has such a huge following he can take one for the team?
If any AIG exec was wondering if they had a case against AIG for not paying per contract. TaxSmurf just answered your question.
@5 Nah, Geithner’s gone anyway. Obama still has popularity. They’re trying to save Dodd. (Why, I don’t know.) He’s pretty much gone without a ton of help.
Good for Timmy. Good for “admitting” something that’s been known since February.
So, if the Safecracker goes, does that leave 18 of the top 20 positions at Treasury empty? As someone asked long, long ago, “Who’s minding the Mint?”.