ObamaOdrama

Treasury Secretary Tim “Turbo Tax” Geithner is still at it pressing for more control over Wall Street.  Appearing before the House Financial Services Committee today, Geithner bandied about terms like systemic risk, consumer/investor protections, international coordination, and of course greater regulatory power.  But as is his custom, Geithner had no specifics and was unwilling or unable to answer questions challenging his fundamental argument that government needs more control of financial institutions yesterday

You can find the entire hearing at C-SPAN

Rep David Scott (D-G) surprisingly asked a fair question.  Since insurances companies are already regulated at the state level, and were not at the heart of the financial crisis, is there a conflict in this broad extension of government power?

How does Geithner respond?  “Excellent question.  Let me just start by saying what we need is better, smarter, tougher regulations.”  That is not an answer.  Nor did he address the main part of the question in his elaboration.  Unfortunately, he was not pressed on the matter either.

Rep. John  Campbell (R-Cali.) following up a line of questioning about Geithner’s proposal for resolution authority and the framework for that authority stressed, “my concern, Mr. Treasury Secretary, would be that if you have, that this is a pretty extreme authority of receivership.  But if you have that authority without the complete information and perspective of a full regulatory framework,  wrong decisions could be made.”

“We designed this proposal to fit within current laws… so that, I mean, current regulatory structure.  You could move on this proposal… alone, and once you do the broader regulatory redesign we’re proposing, you could come back and make sure they fit… you could do it that way,”  Geithner responded.

Geithner even went further claiming it was a great tragic failure of the country that the government didn’t possess the proposed broad authority at the start of the economic crisis and that it was in the interest of the country, for Congress to do everything it can to make sure they’ve got broader tools to manage this effectively.  Basically, just give us the power now and we’ll discuss details later. 

This guy was the President of the N.Y. Federal Reserve since 2003!  It was his job to supervise and regulate financial institutions and he failed!  Just look at the bang up job he did to help call attention to the pending economic crisis during his watch.  Bear Sterns and Lehman… Fail.   Either through malfeasance or incompetence he failed to pay $35,000 in taxes using Turbo Tax - software the majority of Americans use to file.  Not to mention he masterminded the bail out of AIG to the tune of $170 billion of our tax dollars!  He now believes he and the government should be given absolute authority over every financial institution in this country without a speck of proof that even bailing out AIG was in our best interest?  Without detailing the conditions on this new power?

What business decisions are too risky to pursue?  Would a business investment be too risky?  Would an acquisition merger be too risky?  Perhaps not going through with a merger is too risky.  How much is too little capital, how much is too much?  Enough is enough!

Wake up people!  These guys in office are just manipulating your frustration and helplessness to further their own political agendas.  The government doesn’t care they spent $170 billion on AIG because it’s not their money.  The government knew about and approved the AIG bonuses before they were ever outraged.  But by portraying AIG as greedy, fat cats the government can fool you into agreeing with this power grab among others as if it serves AIG right.  But hey, nevermind the government is getting ready to shell out another $30 billion to evil AIG.    No, government isn’t looking out for you and you don’t have to look out for big government. 

it’s coming whether you like it or not.

Appearing before the House Financial Services Committee today, Treasury Sec. Tim “Turbo Tax” Geithner asked Congress to grant the White House the unprecedented authority to seize non-bank financial institutions if those firms are “perceived” as tottering toward failure.

“As we have seen with AIG, distress at large, interconnected, non-depository financial institutions can pose systematic risks just as distress at banks can. The administration proposes legislation to give the U.S. government the same basic set of tools for addressing financial distress at non-banks as it has in the bank context,” Geithner told the committee.

“AIG highlights broad failures of our financial system,” Geithner told the House Financial Services Committee. “We must ensure that our country never faces this situation again.”

What?!?   After having chosen to bail out this miserable firm while letting Lehman fail, the bumbling architect is now arguing that the Obama administration needs greater control of all financial institutions? 

This is a very bad omen…nothing amusing about it.  Not one bit.

I recently questioned how long the government would continue trying to throw AIG under the bus for this whole bonusgate mess. Apparently just long enough for the politicians’ instinct for self-preservation to kicks in.

It’s basic human nature. If you can call politicians human. In the end it doesn’t matter if they are Republican, Democrat, or Independent — no one wants this stink on them and have to face the very mob they helped gin up. But there appears to be a sort of honor among these thieves and rather than give up one of their own they will offer up a bigger “prize.”

Just a few days ago as the public eye shifted in his direction, Chris Dodd (D-Conn.) “confessed” the Obama administration pressured him to clear the way for the AIG bonuses.

According to FoxNews:

Dodd, a five-term senator, was already facing a tough re-election contest in 2010. He says the Obama administration insisted he modify his proposal to rein in bonuses at companies getting billions of dollars in financial bailouts so that it would only apply to payments agreed to in the future — thus clearing the way for the AIG payouts.

It was that or have his executive pay limits dropped altogether from the $787 billion stimulus measure that passed last month, Dodd says.

He agreed to the changes “in order to preserve the amendment,” Dodd told reporters Thursday. “They sought it; I didn’t. They asked for the changes … and so we agreed to those changes.”

On the Joe and Mika Radio Show, Maxine Waters (D-Cali.) fighting for her own survival threw Dodd a lifeline and questioned Obama’s understanding of the facts including the part the Treasury played in the AIG bonuses.

Even Republicans are supporting Dodd’s confession in order to lend legitimacy to their call for the resignation of Treasury Secretary Tim “Turbo Tax” Geithner.

Florida Republican Rep. Connie Mack called for Treasury Secretary Tim Geithner to lose his job Wednesday, becoming the first Capitol Hill lawmaker to call for his ouster over AIG’s using tens of millions of taxpayer dollars for executive bonuses.

Rep. Darrell Issa, R-Calif., later joined in the call Wednesday.

Mack told FOX News that Geithner should resign or the administration should fire him.

“The American people certainly don’t see any competence in him. And I think he’s got a lot of questions to answer,” he said.

Mack said in a written statement released earlier in the day that President Obama should nominate a new treasury secretary with “the experience and leadership skills America deserves.”

“Quite simply, the Timothy Geithner experience has been a disaster. The Treasury Department is in disarray. Taxpayer dollars are being wasted,” he said.

Honor among thieves indeed.

Today, in yet another show of outrage resulting from corporate “greed” epitomized by the AIG bonusgate, the Democrat led House passed a bill that would tax employee bonuses at companies that received government assistance.

Frankly, I don’t give a damn about AIG handing out bonuses to their execs. It’s about as logical as blaming an addict for indulging in his/her drug of choice if given money knowing full well of their addiction. But in this case, it was the government that forced us to give the addict money and now the same government has the audacity to blame the addict! On top of blame the government is willing to punish the addict including anyone who might enjoy a cigarette or a couple beers responsibly on occassion “for our sake”.

Now Treasury Secretary Tim “Turbo Tax” Geithner came up with the idea to give the addict money in the first place and Obama continues to defend the man’s actions. Senator Chris Dodd (D-Conn.) knew the addict was going to get a fix and helped make it happen. And House Financial Services Committee Chairman Barney Frank (D-Mass.) now feels justified in making an example of anyone close to being an addict.

Anyone else see something wrong with this story besides the poor substance abuse addiction analogy?

Treasury Secretary Tim “Turbo Tax” Geither is expressing our outrage at AIG with the next $30 billion in government(?) assistance due soon minus a couple bucks.

Here is a portion of the FoxNews report:

Acknowledging “considerable outrage” about the bonus payments, Geithner said AIG will pay the Treasury an amount equal to the payments, and the Treasury will deduct that amount from the $30 billion in government assistance that will soon go to the company.

“We will impose on AIG a contractual commitment to pay the Treasury from the operations of the company the amount of the retention awards just paid,” Geithner said in a letter to congressional leaders.

That’ll teach them… right?