Flashback: Kashkari grilled on AIG bonuses … on December 10
posted at 4:55 pm on March 23, 2009 by Allahpundit
Just posted at C-SPAN, a reprise of an exchange mentioned in today’s Journal mini-bombshell describing how Geithner’s senior aides have in fact been working on the AIG bonus issue for months. The clip’s fascinating in its prescience in three respects: The ineptness of Kashkari, the Treasury rep; the grandstanding outrage of Sherman, the congressional inquisitor; and the fact that practically no one paid any attention to this at the time, underscoring how trivial the issue is amid the galaxy of worries about TARP and The One’s recovery program. Ironically, the AIG clusterfark is one case where the administration did prioritize, focusing so much on big-picture bank rescue that it let the bonus issue slide off its radar. Although, if Gallup’s right, the story ends happily for TurboTax Tim: 46 percent blame AIG management for the bonuses, 19 percent blame Congress, and only 8 percent blame Geithner.
Exit question: Is J.P. Morgan’s decision to drop $138 million on two new corporate jets and a hangar after receiving $25 billion from TARP the next outrageously outrageous populist outrage? Or is it the fact that TARP banks are dumping money into the campaign coffers of the same congressmen who supported their bailouts? Commenters were defending the jet purchase this morning in Headlines on grounds that it stimulates the aviation industry, which is true but could just as easily have been done by carving that $138 million out of their TARP package and tacking it onto the stimulus as a payment to Boeing. If the goal of TARP is to recapitalize banks and/or get them lending again, why are they making luxury purchases before that goal’s been reached?
Blowback
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No, because just giving the money doesn’t hire workers to make the planes or build the hanger.
And I’ll go with the campaign contributions as the next pitchfork moment.
rbj on March 23, 2009 at 4:59 PM
No that TARP money gives them free cash lying around to get to the real point of business.
lorien1973 on March 23, 2009 at 4:59 PM
Okay you have Rahm Emanuel and others relaying to the press what should be an outrageously outrageous outrage, and we all know that at least to some extent the media is on the same page as the liberals running the government. So there is no outrageously outrageous outrage without the liberal establishment’s say so.
Not like there’s any consequence to it anyway, if most people can’t even identify the real culprits, as that poll from the headlines clearly demonstrates.
John_Locke on March 23, 2009 at 5:00 PM
I’m outraged….over those campaign contributions. Do we know who received them?
Anyway we can tax the crap out of those contributions?
becki51758 on March 23, 2009 at 5:06 PM
the recession is over
celebrate this day!!!1
I made a poopy in my pants.
/Channeling you know who.
Mike Honcho on March 23, 2009 at 5:07 PM
Good question. Another good question is why GM and Chrysler were paid out of these funds. Maybe the answer is that TARP is really just a slush fund, with some salutory banking effects.
Repurblican on March 23, 2009 at 5:08 PM
I’d like to think so, but don’t expect the same level of camera seeking Congressional outrage.
a capella on March 23, 2009 at 5:09 PM
point well taken. It’s unethical but I think it just pisses people on our side off when bunch of corruptocrats go on their grandstanding rage
youngO on March 23, 2009 at 5:09 PM
Exit answer: This would never be an issue if the gub’mint simply stayed out of the fray, and let the market take it’s victims. Painful, but quick and efficient.
Instead, the circle of pork
kickbackscampaign contributions are at work on a scale unimagined just a few short years ago.When do the criminal investigations and impeachment proceeding begin??
.
locomotivebreath1901 on March 23, 2009 at 5:12 PM
Agreed. I can just imagine the outrageous outrage Congress would lay down on Congress. Congress is darn mad at Congress, I’m sure.
Repurblican on March 23, 2009 at 5:14 PM
Speaking of outrage..anyone hear about Barney Frank calling Justice Scalia a homophobe?
becki51758 on March 23, 2009 at 5:18 PM
Thanks, just lost my appetite. When I get it back you owe me a wagyu sreak.
Del Dolemonte on March 23, 2009 at 5:18 PM
I wonder if these hypocritical arrogant politicians would be in full theatrical mode with their berating if the cameras were turned off. Their outrage is getting old and meaningless. I wish the cameras would turn on them. I would love to see the tables turned.
sherry on March 23, 2009 at 5:20 PM
Maybe TATUS (Jimmah the Wonder Boy) works alone? His senior aids did not tell him what they were working on?
A perfect scapegoat for TATUS. So POTUS can continue to have complete faith in Treasury Sec Geithner.
Sir Napsalot on March 23, 2009 at 5:20 PM
becki51758 on March 23, 2009 at 5:18 PM
Seriously?
sherry on March 23, 2009 at 5:20 PM
Yes..he told a gay news magazine this. Its been reported on Fox. I have no clue what the gay magazine is.
becki51758 on March 23, 2009 at 5:22 PM
What is the point of your comments? Are you serious or trolling?
The AIG campaign contributions have been linked here before from Open Secrets. Obama and Chris Dodd were #1 and #2 in recipients with McCain and Hillary a distant third and fourth.
INC on March 23, 2009 at 5:23 PM
This is so ridiculous, we should be getting a lot more perks considering the change we are spending. As to the exit questions, who knows, the rent-a- mob will be angry at one thing and the anti-TARP folks angry at another. I just hope there is enough outrage at both to put a sreeching halt to the bailouts. Unfortunately the rent-a-mob will go along with whatever The Won says.
Cindy Munford on March 23, 2009 at 5:23 PM
You know, if you aren’t careful you might be called a dittohead.
Amadeus on March 23, 2009 at 5:24 PM
Within the past 2 or 3 weeks in one of his pressers, Obama made such a big deal over how great Liddy, AIG CEO, was and that he was in total support of Liddy. His words were so effusive that I don’t know why someone doesn’t look that clip up and rerun it. It is just another indicator of how out of touch Obama is and how this whole administration is in this up to their eyeballs.
Pardonme on March 23, 2009 at 5:26 PM
She’s not a troll, I think she was looking for some more recent updates on the contributions, such as, since TARP.
Cindy Munford on March 23, 2009 at 5:26 PM
I saw a story today about it today and I thought there were new contributions…from TARP money. I knew about the others.
becki51758 on March 23, 2009 at 5:30 PM
There outta be a law that TARP receipients can’t donate to political campaigns.
Buy Danish on March 23, 2009 at 5:30 PM
oops…cross off that 1 “today”.
becki51758 on March 23, 2009 at 5:31 PM
sorry…not AIG, other banks. Its linked in the post.
becki51758 on March 23, 2009 at 5:32 PM
This is going to make the MSM news…………
……….. and a special full hour on “60 Minutes”, right?
Seven Percent Solution on March 23, 2009 at 5:33 PM
Thanks, Cindy. becki, I apologize. I thought you were asking that and talking about Frank to deflect the conversation.
Frank and Dodd really anger me. They ought to be indicted for their role in the economic meltdown. Frank is especially infuriating because he had the effrontery to call for the prosecution of those responsible for the economic meltdown. He ought to be the first one in jail.
INC on March 23, 2009 at 5:34 PM
“Teflon Rahm”…why isn’t he being put under a microscope? Are the media and congress that afraid of “Mr. Four Finger Discount?” Chicago “tough guy?” He wouldn’t last a minute in Georgia. After the hogs got finished with him…even the “CSI” (choose your city) wouldn’t find any DNA.
JoeySlippers on March 23, 2009 at 5:35 PM
OK, sorry again, becki.
INC on March 23, 2009 at 5:35 PM
Campaign donations from the TARP’ers seems to be causing my outrage meter to inscrease. Especially seeing that Cantor has gotten some of the donations.
If he is smart, he’ll return the money.
myrenovations on March 23, 2009 at 5:35 PM
Somehow I doubt that Justice Scalia is scared of the number one.
jimmy2shoes on March 23, 2009 at 5:36 PM
No problem…that would be the 1st time I was accused of being a troll. haha :)
becki51758 on March 23, 2009 at 5:37 PM
JPMorgan Chase wouldn’t take the TARP money until they were forced by the Treasury Secretary. So it sits in a holding account, untouched and unused, while they appeal to get the government to take it back.
That’s the scandal in this: the government forcing companies to take tax dollars and not letting them return it.
JPMorgan is stimulating the economy, but the need to keep attacking rich people will drive the press for a while. It’s like promising to feed the world on cow’s milk while banning the existence of bulls.
PastorJon on March 23, 2009 at 5:39 PM
Geez. Who would have ever guessed that an immediate infusion of 700 billion dollars, before Paulson even had a plan, which he later forsook, would wind up as waste, fraud, mismanagement by both Congress and Business, graft, lobbyist payments, and the like? That almost makes the case for never ever giving stupid Congress the money in the first place, huh? Oh well. Say, can we apply what we know now to the next Trillion that Geithner wants for this new “plan” which is nearly the same as the old plan? or are we going play the part of the battered wife, and tell ourselves that, “it’s different this time”? Are we going to give Geithner what he wants under the same notion that, “if we don’t, we’re all gonna die!!!”? We will, wont we? Yes, oh yes we will. ‘Cause we’re suckers. Oh well. I’ll see ya’ll this summer.
Weight of Glory on March 23, 2009 at 5:40 PM
I was looking for the gop counter proposal to Tim’s plan.
They did not bother and just want it to fail.
getalife on March 23, 2009 at 5:51 PM
Corporations can’t donate to campaigns already, their employees do.
goat on March 23, 2009 at 5:51 PM
“Cash ‘N’ Carry”
Never have trusted this guy just for his name alone.
Brat on March 23, 2009 at 5:53 PM
I am listening to a replay of Glen Beck’s show (not carried live here), a caller said his wife works for Wall Street (TARP receipant) and that her salary was capped several years ago and all of her raises are handled through bonuses. He said the bonuses comprise of 2/3 of her compensation. I realize I don’t know what that means in real money but that’s quite the hit they are taking.
Cindy Munford on March 23, 2009 at 5:57 PM
… and it should have been on the books since Day One. How is this outrage any different than if the Congressmen in question merely raided your bank account and skimmed off a little cash for their re-election campaigns? The blurring of “private” enterprise and politics continues, although this is hardly the beginning, since labor unions long ago became de facto agents of the Democrat party – receiving billions of dollars worth of political assistance and kicking back millions in campaign contributions.
Every aspect of the new American fascism seems designed to produce a political perpetual-motion machine: politicians crank the wheel of commerce to pump out piles of money that fuel the politicians. Like all perpetual-motion machines, this one is a sham.
There’s close to zero chance anyone could have stopped the bailout madness in the early days, when a media-panicked electorate demanded the government do something immediately. Of course, since the electorate didn’t understand the problem, they had no way of understanding the solution, other than reassurances that huge piles of money spent by government are the solution to everything. Still, I’d like to hop into a time machine with a copy of the headlines from the past two weeks and see if that changed anybody’s mind back in fall 2008.
The whole idea of billion-dollar bailouts was always ridiculous – when has collective ownership of anything ever made it more efficient? Now we have collectively-owned mega-corporations, which of course are not truly “collectively” managed, but rather used as piggy banks and political props by the ruling Party. Every American paid for AIG, but only a handful of Americans will ever have any say in how it is managed. How could it be better to let that handful of Americans be chosen by their ability to win votes, rather than their knowledge of the financial sector? The American public needs to rid itself of the sad delusion that dollar bills magically acquire virtue when they pass through the fingers of politicians. We should know better than that by the time we get out of kindergarten.
Doctor Zero on March 23, 2009 at 5:57 PM
I didn’t recognize your name. I know better now.
INC on March 23, 2009 at 5:59 PM
Why would you be looking for a counter proposal? It’s basically the Paulson plan, with a few tweaks, and Republicans supported the Paulson “plan“. If they weren’t willing to offer an opposing plan then, why would you expect one now? Oh wait, I get it. You just like to stoke stuff on this site. Never mind, continue with your “Obama good, Republicans bad” Vaudevillian routine. But afterwards, can you run through, “Who’s on First”? That’s my favorite bit.
Weight of Glory on March 23, 2009 at 6:04 PM
Does this plan have to be approved by Congress?
Cindy Munford on March 23, 2009 at 6:11 PM
Not sure yet. They could start to use money that has already been authorized. But if the Treas. wants more money, then yes Congress will have to approve it. But directly to your question, though they have to approve it, they won’t have to actually read it before voting for it. Yay.
Weight of Glory on March 23, 2009 at 6:14 PM
I was looking for the gop counter proposal to Tim’s plan.
They did not bother and just want it to fail.
getalife on March 23, 2009 at 5:51 PM
getalife you need to get a clue. How dumb are you? Not once did the dims propose an alternative budget or legislation while they were in the minority. It was pointed out how Nancy Pelosi would attend meetings never say a word and then run directly to the press and say she opposed everything that was said in the meeting.
Where were you then? Oh let me guess you one of those morons who complained, but never offered any alternatives.
Jdripper on March 23, 2009 at 6:16 PM
You’re bordering on child abuse there, WoG.
Please continue.
Patrick S on March 23, 2009 at 6:17 PM
Not only should they read it, there should be a test!!! The reason I asked was because of nolife’s question. If it was stictly the product of the Treasury Dept. then obviously there would be not alternate plan offered by the Republicans and if it has to through Congress then amendments would be offered during that process. Just trying to get my facts straight before calling him a horse’s patoot. Thanks for your help.
Cindy Munford on March 23, 2009 at 6:19 PM
Actually, CM, now that I think about it, I have no freaking clue! With the language in the first TARP (“ensure the prosperity…”) who knows what kind of leeway that gives the Executive branch. That’s the biggest loophole evah! Uncharted waters here, sister, hold on tight.
Weight of Glory on March 23, 2009 at 6:20 PM
And you draw that conclusion how? Give me the facts that show this Administration has been prioritizing anything to do with banking? How many vacate seats? At least we got a Plan… TODAY. Where are all the committee meeting minutes? How many banking roundtable meetings has this Administration had? Pres. Obama figure out what P/E Ratio mean yet?
The way you come by some of your analysis on issues is foreign to me. Maybe because it lacks a scientific theory. I think THAT’s ironic.
Sultry Beauty on March 23, 2009 at 6:24 PM
Kind of sad isn’t it because most of us here are current event/government oriented people and we have no idea what the rules are anymore. I am pretty sure they aren’t suppose to make it up as the go along. I am going home now, I will sign back on later. Again, thanks for your help.
Cindy Munford on March 23, 2009 at 6:28 PM
Oh, I got you now. You know, it’s even stranger from that view. Because for Geithner to get more money to buy the toxic assets (the new plan), which I assume is still the MBS, then he’d need Congressional approval. But the FED did this very thing last week ex nihilo for the MBS of FM/FM. So who knows, it’s too crazy.
Weight of Glory on March 23, 2009 at 6:28 PM
See ya, CM.
Weight of Glory on March 23, 2009 at 6:28 PM
“… is it the fact that TARP banks are dumping money into the campaign coffers of the same congressmen who supported their bailouts?”
I’m waiting for THE MOST ETHICAL CONGRESS ever to pass a law stating that TARP companies can’t donate funds to political candidates until their loans are repaid.
Hahahahahahahahahaha!!!!
GarandFan on March 23, 2009 at 6:32 PM
Hey folks, you’re not getting the news straight here.
Sort of makes AP’s last point somewhat moot. The rumor was probably started by some Dems wanting to take more heat off themselves.
Christian Conservative on March 23, 2009 at 6:44 PM
The hand of Axelrod. I’m sure he has his connections to keep the daily rumor and lies mill going.
INC on March 23, 2009 at 7:06 PM
Corporate jets can and do make executives of the company more efficient. By eliminating time spent in airports, by allowing them to travel when and where needed, rather than rely on airline schedules. It also allows them towork on company confidential material whilein the air.
I’m not saying that these jets are never abused. I am saying that when used properly, they serve a valuable role.
MarkTheGreat on March 24, 2009 at 8:15 AM
geez…
If Treasury and the Obama administration can’t “connect the dots” on AIG bonuses, how are they going to do with the real enemies of the US.
Keith_Indy on March 24, 2009 at 8:39 AM
Geithner “Ohhhhhh! You mean AIG bonuses! When I said I knew nothing about them until March 10th, I thought we were talking about something else.”
DarkKnight3565 on March 24, 2009 at 9:58 AM