Good question: Why didn’t Geithner think of it?

From Truthdig:

Treasury Secretary Timothy Geithner has sent Congress an explanation of his plan to deal with the AIG bonus fiasco. Essentially, Treasury will dock the $165 million in bonuses from AIG’s next bailout payment. Here’s a question: If AIG can do without that $165 million, why were we giving it to the company in the first place?

This question, in the end, is the operative one — and one that could damage the Obama administration’s credibility with the American people. The AIG debacle has ignited a firestorm that could engulf Obama and his economic advisers.

The reality is that this mess is wonderfully (sarcasm alert) bipartisan — a bailout negotiated by the Bush administration and Federal Reserve Chairman Ben Bernanke and exemptions for AIG and others pushed by the Obama financial team has created federally subsidized bonuses for bad behavior. What should happen now is that the Obama administration should step up and take responsibility for its role in the AIG fiasco, work to recoup the bonuses and put tough rules in place to prevent it from happening again.

Author: hankkalet

Hank Kalet is a poet and freelance journalist. He is the economic needs reporter for NJ Spotlight, teaches journalism at Rutgers University and writing at Middlesex County College and Brookdale Community College. He writes a semi-monthly column for the Progressive Populist. He is a lifelong fan of the New York Mets and New York Knicks, drinks too much coffee and attends as many Bruce Springsteen concerts as his meager finances will allow. He lives in South Brunswick with his wife Annie. View all posts by hankkalet