HOUSE hearing on AIG: Open Thread
By John Amato Tuesday Mar 24, 2009 7:40amThe hearing is underway with:
Treasury Secretary Timothy F. Geithner and Ben S. Bernanke, the Federal Reserve chairman, are the star witnesses on Capitol Hill on Tuesday as Congress continues to examine the government’s bailout and oversight of the American International Group (and, of course, those bonuses)
CSPAN is live streaming it here.
Is that the insane Michelle Bachmann I see asking questions? Barney Frank slapped her down over the use of her time. Didn't she just say that this:
"I’m a foreign correspondent on enemy lines and I try to let everyone back here in Minnesota know exactly the nefarious activities that are taking place in Washington."
She's channeling her inner Glenn Beck and reaching out to the right wing militias.
UPDATE: Geithner asks for Broad Power to Seize Firms
Treasury Secretary Timothy F. Geithner today told Congress the administration will seek unprecedented power to seize non-bank financial companies whose collapse could jeopardize the economy, a move Geithner said would have allowed the government to bail out insurance giant American International Group at a far lower cost to taxpayers.
...Chairman Rep. Barney Frank (D-Mass.) seemed inclined to support Geithner's request, saying the government should have the same power over all financial services firms as the Federal Deposit Insurance Corporation does over banks.
"Banks also failed in 2008 . . . But the fact is that we have in place mechanisms . . . that contained the damage," Frank said. " . . . We need to give somebody, somewhere in the federal government. . . the power to do what the FDIC can do with banks.
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Was Bachmann's call for the constitutional basis of the fed's existence. Ah wingnutia in the morning.
Rep. Bachmann (R-Confusion) also calls for her peasants with pitchforks to be "Armed and Dangerous". Maybe she was right in calling for investigations of members of congress who make "un-american" statements...can we start with HER?
I understand your point, please don't replace MN with Confusion though. We in MN aren't all confused about her idiocy. Only by the confounding statements she makes.
Until you stop electing her...
"I’m a foreign correspondent on enemy lines and I try to let everyone back here in Minnesota know exactly the nefarious activities that are taking place in Washington."
Sounds like she has it right, not that shes an innocent.
Geithner and Bernanke, two snakes talking to a bunch of other snakes. It's a wonder they can all keep straight faces. Show trials.
when I was just at home making lunch.
What a dingbat Bachman is..wow.
Watching the wingers in this committee hearing bears out the fact that they are all in over their heads. They are shallow minded knuckle draggers, fighting any progress in any area of life. They are not the brightest bulbs in the room.
I haven't had enough coffee to listen to her yet, but I was glad Frank wouldn't let her prattle on.
Frank also squelched Code Pink in a firm but reasoned manner, IMO.
... blame the morons who elected her
But one thing I know is that the people that vote for her are misinformed. For her, and all other congressional districts that have similar-minded individuals, we that are informed need to start a movement that will bring them into understanding. It's amazing that when I begin to reveal true insight to some, how they quiet down and actual begin to examine what they know. It's really makes my day.
I've gotten a few to rethink their stance on things after a long conversation.
Whether it took or not is another story.
just freaking do it idiots . . did Bush and the gang ask permission to over rule 50 years of progress in this country?
my glitch
Oh ya, that's what is needed. One of the main "players" of the mess having more power. Yikes.
I can only imagine the ways that broad power such as giving the fed and/or treasury the ability take over companies. The way our legislature hurries into legilsation, this is a recipe for disaster. If we had a poor piece of legislation, and a evil-minded overseer, perhaps the following situation could be a reality:
"Hey Timmy, how you been? You know, ETrade has been taking our market share at Goldman Sachs, and I would appreciate if you could step in. You know, I happen to know that there is a few million dollars in a garbage bin on Pennsylvania that you might find if you were able to take ETrade into receivorship, and perhaps their assets could go to auction which we receive preferential treatment. It was great talking to you, see you next week at the club."
I'm guessing that scenario is closer to reality than to fiction.
Quick question...instead of giving unlimited, cosmic powers to the Fed or Treasury, why aren't we pursuing legislation that responsibly regulates derivatives, CDOs, CDSs, etc.? I know that we need to address insolvent financial institutions, but I would feel better about this all if there was some regulating going along with the doling out of power and money.
It's about freakin' time!
with little Timmy, one of the creators of this fraudulent scheme, to have more power? How much more power can any of them be given? They've already given away the kitchen sink, the grandchildren's future, and basically any money they can print. What's left?
Why is it so important for the government to bail out the insurance industry at all? What toxic assets? Baloney! Can't be bad mortgages, because last time that issue was raised, a figure in the neighbourhood of 3% were failed mortgages. How does that account for the billions being given away?
... Timmy can stop looking out of the side of his eyes, maybe I'll believe him.
Don't forget... It's bare knuckles capitalism for the bulk of us, but a multi-tiered "buddy-bail-out" system for anyone(big-business) that just can't seem to adjust gracefully to the new economic reality. Personally I wouldn't be able to sleep at night knowing these execs were being forced to sleep in their Rolls Royces. (sarcasm). The extra authorative powers are just more insurance for the mega rich.
Call it bankruptcy or call it temporary nationalization, it is way past time that these mega-firms be put into receivership, ie taken over by government appointed officials (nationalized if you prefer), broken into their pre-merger parts, each part nursed back to solvency, and returned to the private sector.
"taking haircuts" when discussing financial catastrophes...
And now Barney is okay with how the gubment steals from us? He must have worked out the details that allow him to profit, or keep his job, and let the rest of us rot.
These people are actively trying to destroy each and every one of us as they loot the treasury. We have no representation any longer in congress. We have come to the point where our government needs to be automatically recalled due to a lack of confidence. When all the perpetrators are indicted or incarcerated, we will consider revisiting your nonsense about protecting your friends in the industry. Or not. Likely, not.
that's 99% of the problem.
is look at the political donations to ol' Barney's 28 year career to know who butters his bread. Sure as hell isn't the taxpayers.
http://www.youtube.com/watch?v=n3InMTrfdgI
Obama needs to give this man the mic more often.
getting the shaft.
"But I'm talking 'bout Shaft!"
"Then we can dig it."
It's a complicated plan
And no one understands it but Bernanke ...
SHAFT!
yadda . .
They already "solved" the AIG problem completely. It is now to be known as AIU Holdings Liimited. There is no more AIG, no more problems.
Dead on arrival
We bend over for you
A 27 year-old hot CEO???
She looks like just another red meat gobbling stinky on the inside lizard from what I see.
fast her on fruits, relaxation, pure water for a month, give her soul and entire scrubbing and then maybe we could talk hot.
Very interesting. While everyone's 401k balance and IRAs that did not purchase protection from AIG took a 50% value drop over the past few months, the pension and thrift savings accounts of federal employees and Congressional members did not drop because AIG protected it and then was supported by the bailout funds.
Tiny Tim and Big Ben
Brother can you spare a trillion, or ten.
"Change For A Dollar?"
(The original Berni Wrightson cartoon.)
Last night, BillO the Clown passionately blamed the entire AIG debacle on the Obama administration, notably Geithner.
I'm not defending Geithner at all in this matter, but Bernanke said in his testimony that Paulsen knew about the bonuses last fall.
I'm really wondering why BillO and other right wingers are calling for Geithner's resignation so soon when they took forever to renounce Rumsfeld (if they ever did renounce him) and ask for his resignation.
http://www.xkcd.com/558/
Did you hear Michelle Bachmann ask Geithner and Bernanke (Do they have these two yahoos up there because their names are so hard to spell?) where it says in the constitution that they can do what they are doing? The funniest thing of the day was the reaction from Giete... Geitne... Geithner. He looked at her as if she is as bat shit crazy as she is. His look said it better than words; "What the fuck are you talking about?" And when her time was up and they didn't have to answer another dumbass question from the loon, they gave that "inside joke" kind of smile.
During the recent sworn testimony of American International Group Inc. (Now known as AIU Holdings, Ltd.)Chief Executive Officer Edward Liddy said the following.(This is not a quote)
RE: "The retention bonuses". The noted contract that allegedly contained the bonus stipulation was created and agreed to sometime in the beginning of the year. He went on to explain a few interesting points. He confirmed the fact that some "Bonus" individuals had left the employ of AIG once their work(of winding down the books) was complete.
It was also brought to light that at that (The time of the bonus contract) they anticipated a "forward looking" loss to AIG.
My question is, Who and how long had they worked for AIG, prior to the contract in question. They anticipated a loss and at the same time knew the gig was up! The game starts at the "FED" and we are not allowed to look at their books... We are finally putting the horses in front of the cart but until we put the Fed. in front(instead of back offices) of our cart, we'll just go off coarse again.
Amended: AIG/AIU Holdings, Ltd, whats in name? In 1996, Morgan Stanley acquired Van Kampen American Capital. On February 5, 1997, the company merged with Dean Witter Reynolds, and Discover & Co. the spun-off financial services business of Sears Roebuck. The merged company was briefly known as "Morgan Stanley Dean Witter Discover & Co." until 1998 when it was known as "Morgan Stanley Dean Witter & Co." until late 2001...
AIG should never have been allowed to insure more than they could cover in a worst-case scenario. That's fraud. And AIG should be prosecuted for fraud.
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