The hulabaloo over the AIG bonuses reached a climax today with the House voting to tax the bonus payments at 90%.  I guess all the pomp and circumstance had a happy ending for those that were hanging on to this non-issue…

Unbelievably, Tim Geithner knew about these bonuses but remained mum throughout all the finger-pointing and grandstanding.  According to the NY Times:

Interviews with senior Federal Reserve and Treasury officials, as well as members of Congress, leave little doubt that the bonus program was a disaster hiding in plain sight. Mr. Geithner is not the only one who appears not to have understood the populist fury the bonuses would set off.

So, the Fed and Treasury orchestrated the multiple AIG bailouts, knew about these bonuses and said nothing until it blew up in their faces?  That’s pretty dishonest.  Why is Geithner not in serious jeopardy of losing his job?

Take it away, Ron…

For more on the AIG bonuses, read here

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