Neil Barofksy Puts $168 Million On Geithner's Tab

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Timmy G must be longing for the days when all he had to answer for was being tricked by Turbo Tax into not paying his taxes. According to Neil Barofsky, TG already has $168 million in AIG retention bonus dirty money on his hands and is on pace to add $198 million more. The rage stems from last March when "a failure of oversight by Treasury" led to multi-million pay days for executives of bailout champion AIG. But that was March when everybody was worried about Dow 5,000, not breaking out the confetti in celebration of Dow 10,000. This was back in the day when some people thought the economy really was going off a cliff. It's not like he really had the time to deal with minor details like who at AIG was being paid what.

Ultimately, Geithner did not learn about the bonuses until March 10, three days before they were paid out, despite running the Treasury Department since January and, before that, the Federal Reserve Bank of New York, where officials knew about the payments last November.

So he didn't get the memo on the payments. What's the big deal?

"We have a Secretary of the Treasury who failed to know what he should have known, failed to do what he should have done, and has failed to give us transparency," (Rep. Darrell ) Issa said.
"We're hearing that, one, we're not getting transparency and, two, even if we get transparency, if we can't trust the judgment and decisions of the Treasury, then, in fact, we're not going to get the outcome the American people expect us to get. And we're going to continue to have non-essential people paid huge bonuses in many cases that are unnecessary with taxpayer dollars."

Everybody's entitled to a mistake here or there. The important thing is he has the right people at Treasury to make sure the recovery efforts lead us back to growth.

After hearing the watchdog's testimony, the panel's ranking GOP member, Rep. Darrell Issa of California, called for Geithner to come before the committee in an effort to get him to "make a change in direction" at Treasury.

This time, he'll get the memo.
Watchdog: Geithner "Ultimately Responsible" for AIG Bonus Fiasco [ABC]


Bloomberg Worried About Tim Geithner's Ability To Put Food On The Table

As you may have heard, because you've read the reports reports or picked up on the Morse code message he's blinked out during every appearance on CNBC or he threw himself on the hood of your car and screamed "Get me outta here" the last time you drove up to the Treasury building, Tim Geithner is ready to leave Washington. Has been for some time, in fact, but previous requests to go home were all denied. Now that his bosses are supposedly going to allow him to leave in the event Obama is reelected, many are wondering what will be next for TG. Despite having spent the majority of his career in public service and giving the impression that he has no desire to work for Wall Street, Bloomberg is thinking that with the albatross that his his unsellable Larchmont house around his neck, a family, and college tuition to pay, Geithner may not have a choice. The years in public service -- particularly engaging in diplomacy with domestic and foreign partners -- left a deep impression on Geithner, infusing him with a sense of purpose that he might find lacking on Wall Street...Yet the years in civil servitude have also left Geithner in need of a better salary. Geithner is one of the least wealthy men to head the Treasury Department in recent years. He took more than a 50 percent pay cut to assume the job. His $199,700 salary is higher than the $174,000 earned by most members of Congress. His pay has been increased by $8,400 in three years, yet his net worth pales next to such predecessors as Hank Paulson and Bob Rubin. With two mortgages and two college-age children, the lure of private-sector money could be hard to resist. BlackRock's Fink, for instance, received $23.8 million in salary and stock in 2011, making him No. 1 in the Finance 50, Bloomberg Markets' annual ranking of the best-paid CEOs at the largest U.S. financial companies. Other ideas Bloomberg has for ways Geithner can make ends meet that he's already said no to include writing a memoir. He "publicly ruled out" doing so in September, but they're pretty sure he'll reconsider after the guy he hired to patch up his roof tells him the whole thing needs to be replaced. What's Next For Tim Geithner [Bloomberg] Related: Tim Geithner To Finally Be Set Free? Also Related: Robert Shiller, Westchester-Area Realtor Rub Tim Geithner’s Nose In It