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.
Archive for March 2009
The Attorney General, still refusing to agree not to disclose names, has succeeded in getting AIG to turn over its list of bonus recipients. Apparently he’ll offer them up for your consumption only after security concerns are assessed. Meanwhile, Bloomberg reports that Connecticut AG Richard Blumenthal has taken a tiny page from his NY counterpart’s playabook, and issued AIG subpoenas of his own (three day deadline? Dick, please. You give them 3 hours and threaten to “cut a bitch” if they don’t comply).
Still nicely in double digits, a small setback will not detract from the glory that is the First Analyst’s performance.
The Obama Portfolio (Since Inception): +11.65%
Earlier: The Obama Portfolio
Just in case you had the idea that Goldman had something unsavory going on with AIG, and the Q&A from the other day didn’t clear things up crystal-like, well, Goldman’s CFO is here to help.
The Goldman Sachs Group, Inc. (NYSE: GS) today announces that David Viniar, Chief Financial Officer, will host a call on Friday, March 20th at 11am to answer questions from journalists and clarify certain misperceptions in the press regarding Goldman Sachs’ trading relationship with AIG.
Members of the public who would like to listen to the conference call should dial 1-866-395-4795 (U.S. domestic) and 1-706-634-9312 (international), Conference ID 91508555. The number should be dialed at least 20 minutes prior to the start of the conference call.
For those unable to listen to the live call, a replay will be available by dialing 1-800-642-1687 (U.S. domestic) or 1-706-645-9291 (international), Conference ID 91508555, beginning approximately two hours after the event. There is no charge to access this call.
See ya there!
Goldman Sachs CFO to Host Call for Media [Business Wire]
Earlier: The Secret Goldman Decoder Ring
Not sure how we missed this yesterday, but apparently Ed Liddy told Congress that “the AIG name is so thoroughly wounded and disgraced that we’re probably going to have to change it.” He’s probably right! But to what? Get your noms in today. We’ll forward the best ones on to Lids.
Rumor has it that Hank Paulson has somehow persuaded Portland to pay for two new stadiums. Totally coincidentally and unrelated, Merritt Paulson, Hank’s son, owns two Portland franchises. A soccer team and a AAA baseball team.
Whoo hoo!
Try this on for size: Goldman Sachs fed the asset bubble by offering “market terms” for hedge fund margin accounts. Then, as the environment softens, they “pull the rug out,” and demand collateral from their clients. Immediately after this, they create special vehicles to buy “illiquid assets” from these same clients, which now they may sell at a profit.
Predatory lending, or clever, opportunistic use of excess liquidity when liquidity became worth its weight in gold?
Hmmmmm.
HT: The Mailbag.
…hanging with Cuomo? A spy informs us the former Treasury Secretary is in the Equitable building on 120 Broadway visiting with the Attorney General, circa now. Talkin’ bonuses? Shooting shit? Teaching Andrew how to palm a basketball? You tell us.
As mentioned yesterday, protests are scheduled to take place downtown today at 4PM, beginning at Goldman Sachs. The following memo just went out to AIG employees re: the demonstration.
As a result of the continued media attention directed toward AIG, there is a planned demonstration in Lower Manhattan scheduled for this afternoon (3/19/09). Specifically, we have learned that a group of demonstrators are scheduled to form in front of 85 Broad Street (Goldman Sachs) and following a brief demonstration move in the direction of 70 Pine Street. Given the uncertainty as to travel route, duration and planned activities we are suggesting that a degree of flexibility be built into your afternoon routine as the demonstration may coincide with end of the day departures. These events are generally peaceful and Corporate Security in cooperation with the NYC Police Department will be taking precautionary measures to ensure your safety. Additional information will provided as it becomes available which may include specific instructions with regard to departures from the building during the demonstration. The below suggestions are being provided for your consideration prior to, during, and following the demonstrations:
Stay tuned.
