March 19, 2009
Posted: March 19th, 2009 04:25 PM ET
Treasury Secretary Timothy Geithner told CNN Thursday his department asked Sen. Chris Dodd to include a loophole in the stimulus bill allowing bonuses to be paid.
Treasury Secretary Timothy Geithner told CNN Thursday his department asked Sen. Chris Dodd to include a loophole in the stimulus bill allowing bonuses to be paid.

(CNN) - Treasury Secretary Timothy Geithner told CNN Thursday his department asked Sen. Chris Dodd to include a loophole in the stimulus bill that allowed bailed-out insurance giant American International Group to keep its bonuses.

In an interview with CNN's Ali Velshi, Geithner said the Treasury Department was particularly concerned the government would face lawsuits if bonus contracts were breached.

Watch: Geithner on AIG bonuses

Dodd admitted to CNN Wednesday he'd added the controversial provision after a Treasury official pushed for it. Earlier in the week, Dodd had said he had not played any role in the addition of the loophole.

Geithner told Velshi Thursday he takes full responsibility for the situation.

Also in the interview, airing in part at 5 pm ET on CNN, Geithner said:

- He does not believe TARP or the stimulus bill was rushed through Congress

- Calls for resignation are part of the job

-Officials will make sure that any further money comes with provisions (including executive compensation)

-His team will have a detailed plan for the banks w/in the next couple of weeks

-The recession will likely end in 2009, and 2010 will be a year of growth

See the comments this afternoon at 5 pm ET on CNN

Filed under: Chris Dodd • Timothy Geithner


Re:Generator Magazine » Blog Archive » The honeymoon is over   August 30th, 2009 3:16 pm ET

[...] have been small eruptions in the past, but this is the Obama administration's first real full-blown scandal. How it's dealt with will [...]

Chopstix   March 19th, 2009 5:10 pm ET

Geitner was wrong, but at least we finally have people owning up to their errors. The nay sayers continue to be oblivious to the lies and arrogance that got us here. The Obama administration inherited a living hell that we all are paying for and the w followers seem unable to place responsibility where it belongs–greedy, rich, arrogant politicians and executives that focused only on themselves!

John from LA   March 19th, 2009 4:01 pm ET

FINALLY-the people who voted for the Almighty O are getting it-HIS TEAM STINKS!!!!
Geithner-OUT
Dodd-OUT
BO-Keep him in...for now.

Mike   March 19th, 2009 4:01 pm ET

I like how everybody disregards his reasoning behind this "loophole" and act like they have never made a bad judgment call. He was up front and honest about it. Get off your high horses and start thinking rationally.

The Death of America by Obama   March 19th, 2009 4:00 pm ET

Geinther, you need to go. And if you don't, hopefully, obama will pay the price for keeping you....as he should.
obama is such a liar and such a phony it's hard to even look at the man when he's telling us how "swell" you are....what a "swell" job you're doing.
I really wish there would be a great flood in Washington to drown all the rats that have infested the place.

bob   March 19th, 2009 4:00 pm ET

at last it is refreshing to have politicians actually step up to the plate and admit their errors..we all make them in life and we should all follow their example the choices we all make are ours to hold AND be accountable for their results good AND bad..I respect you Mr Geithner. Cant say this for guys like Bush or that cheney did you hear him on Sunday all he can do is blame the other guy. You are a cheap low life Mr cheney be a man for once in your life and admit you made mistakes..BIG ONES if measured to this.

Carol   March 19th, 2009 4:00 pm ET

The fact of the matter is there is nothinig congress can do as far as taking way those bonuses and taxing them contracts are contracts they are legaly binding and this dog and pony show is just typical of them.

Obama saying lets moveo n was his way of protecting Geitner

carol

Betty   March 19th, 2009 4:00 pm ET

This tax issue with AIG is so small compared to the stimulous package that was signed before anyone could read it. Which included bonus for AIG. The american public is not upset over the AIG issue as they are the leadership in Washington. Americans don't like goverment that is croocked which this goverment is and the games being played at the exspence of all of us. The AIG does not compare to the pork spending the goverment is doing. They should have explained where every dime is going and each ear mark . Now that is a waste of tax payers dollars. And much worst then AIG issue...

Fitz in Texas   March 19th, 2009 3:59 pm ET

LIE LIE LIE-–That's the one thing Geithner seems to be good at, besides not paying his taxes.

Obama hired him and Obama needs to FIRE Geithner.

I can only hope that in 2012 the American people FIRE Obama as well!

rufus   March 19th, 2009 3:59 pm ET

What a total, complete disgrace. The tax on the bonuses is even more disgraceful.

momof3   March 19th, 2009 3:58 pm ET

so.. they're taking responsibility... Obama said he is to blame... are they going to pay for their mess??? or since their popularity are so high... it's ok for them to do so... MOVE ON... people... this is THE CHANGE that we promised you....!!

Skip, a black man   March 19th, 2009 3:58 pm ET

Obama MUST step down!

d1120   March 19th, 2009 3:58 pm ET

ANYONE would be better than him...

Had It   March 19th, 2009 3:57 pm ET

The contracts were legal and binding.

Congress cannot make a new law goes into effect retro-actively. THAT would violate the constitution.

People - it's awful, but it's the LEGAL way to change now and future. As disgusting as this whole mess is, at least there is a BEGINNING to cleaning it up.

Maggie in NY   March 19th, 2009 3:57 pm ET

flybyshoeing – I agree with you.

JJ12345   March 19th, 2009 3:57 pm ET

Eric March 19th, 2009 3:47 pm ET

Well at least they admitted to it-unlike Bush/Cheney. I mean they aren't hiding anything-we know what's going on. I honestly believe them.
_________________________________________________
Two days ago Dodd said he had nothing to do with it, he admitted it because he had no choice and threw the administration under the bus to protect himself. He would have never admitted it unless it was going to be brought out anyway. Dont give him credit for integrity. Where is his countrywide mortgage paperwork that he said he was going to release last year?

Carol Spence   March 19th, 2009 3:57 pm ET

There is an old saying " When a person shows you who they are you'd better believe them" Is Geither and Dodds for President Obama or against him ? or is this just an example of what has always happened in Washington , it seems like the old throw the old rock and then hide your hand .

Realisticly Speaking   March 19th, 2009 3:57 pm ET

Who are these people that keep saying "Is that change we can believe in"?

What person expects 30 yrs of government ineptness should go away
in TWO MONTHS!!!!!!!!!!!!!!!!!

AGAIN, WHO EXPECTS 30 YEARS OF INEPTITUDE TO GO AWAY IN TWO MONTHS!!!!!

Carol Spence   March 19th, 2009 3:57 pm ET

There is an old saying " When a person shows you who they are you'd better believe them" Is Geither and Dodds for President Obama or against him ? or is this just an example of what has always happened in Washington , it seems like the old throw the old rock and then hide your hand .

Chris   March 19th, 2009 3:57 pm ET

I see a resignation in the crystal ball, at least there should be one!

Tim, Seattle   March 19th, 2009 3:57 pm ET

The facts and a non-mob mentality point of view:

PROBLEM: AIG is so big and entrenched Globally, it cant be allowed to fail. NO ONE disputes that. If it fails, the damage will be far worse to the economy. So letting it fail is not an option. PERIOD!

SOLUTION: Regulate more through anti-trust laws so that companies can never get so big their failure would bring down the US or Global economy.

PROBLEM: Bonuses paid to AIG coming from public money

SOLUTION: Either honor contractually obligated bonuses or enact a bill to get the $ back (this is already underway)

PROBLEM: Who knew what when? It was Treasury who inserted the loophole language. Now you know. But does that fact change anything? Not really

SOLUTION: Keep Geitner on. To let him go could cause panic and it fuels the media to start pinning all this on the president (which all are itching to do)
The public, the media and especially the republicans want someone to step up to the guillotine so that the pitchfork and torch 'mob' can have some satisfaction. But for what?
They all need to remember that both dems and GOPers alike stated public support for Geitner all saying he is hands-down the most quaified to understand how to deal with the problems. The bench is not deep and no one is going to want to come aboard and ramp up

Roy   March 19th, 2009 3:57 pm ET

The Real Message here:
-Democratic or Republican......there is a level of executive and management in this country today who are SPOILED SILLY......who think they deserve ridiculous salaries.....and on top of THAT, even more money to 'Keep Me Here'.....or they run crying to another big business to do the same thing.

This is DISGRACEFUL.......when we have almost 9% unemployment in this country....the greed of this stratified group of executives is SHAMEFUL........whether democratic or republican. These executives regard themselves (like Madoff) as above the rest of us, above the government, above the law...this MUST be stopped or business as we know it in this country will collapse regardless of what either party does.

ANGIE IN PA   March 19th, 2009 3:57 pm ET

Geithener Did what he Could do LEGALLY! AIG HAD LEGAL CONTRACTS The Goverment has no Right To tell them about their Contracts, Thats SOCIALISM And could of led to LAWSUITS! At least he is Admitting it Unlike the Past Administration They did no wrong Cheney says!

jim   March 19th, 2009 3:57 pm ET

This is what I like about dem's, they are honorable enough to take responsibility for their mistake's. Unlike the republicans who will place blame on everyone else before they look to themselves. They have the nerve to say the last 8 years was because of "liberals" or "communists" or what ever come's out of those crazy hatefilled wacko's mouth's, they are such scum.

Terry McCormick   March 19th, 2009 3:56 pm ET

What does it mean that he takes full responsibility? I voted for Obama, but the Wall Street crowd appears to have borne no consequences for this disaster. Geithner should resign. It's time to accept the consequences of taking responsility.

Chuck   March 19th, 2009 3:56 pm ET

Our leaders should only be concerned about doing the right thing and then defend lawsuits if necessary. It is not right to give borrowed taxpayer funds to banks at all because they would raise rates and foreclose in a heartbeat on the taxpayers that get the bill. That is the source of deep anger. Degregulating lenders may be the worst thing Bush and Republicans in Congress did, but its hard to compete with borrowing money from China to wage war on Iraq that did not attack us instead of Al Qaeda that did.

Glennis   March 19th, 2009 3:55 pm ET

Just when you think the government couldn't possibly do anything more outrageously stupid, this comes along. It's simply unbelievable that Congress is now slapping a 90% tax on them after they and their incompetent enablers in the Obama administration were responsible for AIG getting those bonuses in the first place. You'd better believe the lawyers are licking their chops at this opportunity!

stan boren   March 19th, 2009 3:55 pm ET

With all of the oratory skill that Pres. Obama has displayed on the way to White House, he needs to convey who, what and why his administration is so riddled with seeming incompetence and inability to have paid taxes due. I am very disappointed, and all this while trying to ram an amnesty bill down our unsuspecting throats after having removed the e-verify 5 year extension in the stimulus bill.

Debbie C   March 19th, 2009 3:54 pm ET

This guy needs to go!!!! Anyone knows a bankrupt company cannot be sued to pay bonuses – how many liars can there be in the government???? We need someone that has a brain and COMMON SENSE!!!!!

worriedmom   March 19th, 2009 3:54 pm ET

I think all involved should step down. The President would not listen when people voiced their discontent with the appt of Geithner. He has an image problem with not paying his taxes and then being appointed to the important position. Also shows Dodd is not trustworthy. No one will ever convince me that Obama didn't know about all of this. sounds like the Chicago thug methods was used and guess what, they got caught. Now Obama will go on Leno and make light of it and tell us to go on until more is discovered on crooked policies. Fannie Mae and Freddie are now getting bonus. and by the way, didnt Dodd and all of the crooks up there get a raise for themselves. Tax them at 90%!!!

no corporate politics   March 19th, 2009 3:54 pm ET

AIG's $100,000 donation to Obama was money well spent! Those of you that are giving Obama all the credit for the good stuff happening, remember he signed this bill too!

Lack of awareness and responsibility is how Bush exectued his post. Now Obama is doing the same. Didn't I hear something about Change?

anne   March 19th, 2009 3:54 pm ET

Well, I think it's time for Geithner to go. I don't buy his explaination that he was afraid the govt would be sued. BOGUS. He obviously still works for Wallstreet and AIG and not for the people of this country. He needs to quit or be fired. I do wonder if Obama new about this. He does have a lot to do and seems to have left all this in Geithner hands. It wouldn't surprise me if he didn't know until last week. He can't be everywhere at once though people seem to think he should be. That is what he have cabinet members for. But he obviously can't trust Geithner and it has gotten him into hot water. Get rid of him.

Roy   March 19th, 2009 3:54 pm ET

The Real Message here:
-Democratic or Republican......there is a level of executive and management in this country today who are SPOILED SILLY......who think they deserve ridiculous salaries.....and on top of THAT, even more money to 'Keep Me Here'.....or they run crying to another big business to do the same thing.

This is DISGRACEFUL.......when we have almost 9% unemployment in this country....the greed of this stratified group of executives is SHAMEFUL........whether democratic or republican. These executives regard themselves (like Madoff) as above the rest of us, above the government, above the law...this MUST be stopped or business as we know it in this country will collapse regardless of what either party does.

Bridgette   March 19th, 2009 3:54 pm ET

I can't believe that people who have a felony on their record can't find jobs for the petty crimes that they usually committ but these crooks can go from company to company robbing and stealing everything in site. The blame here rest on AIG. They knew they should not have given those bonuses out. This is not all the politicians fault and believe me I am the last one to defend these idiots. But this mess is to the point where it is just ridiculous. These CEO's and there crews have gotten so use to doing this that they feel the money is their birth right.

Lou C   March 19th, 2009 3:54 pm ET

I thought the Government could only be sued when they agree to be sued. Why is the Govt afraid of 30 to 40 Ponzi Scammers ? This acceptance and payout of millions of dollars for failure has to stop somewhere. Come on, lets go to court with a jury of regular citizens !

Nana5   March 19th, 2009 3:54 pm ET

How sweet – everyone, even your President – is taking responsibility. Now just get rid of all those responsible. Duh – that's a no-brainer. If I make a mistake in my job that cost either the company or clients money, you can bet I'd be a gonner!! Get rid of the whole bunch of no-accounts. I don't care if they are democrat, republican or what. It's time to not only own up to what you've done – do the honorable thing – resign and do the American taxpayers a favor.

anne   March 19th, 2009 3:53 pm ET

Well, I think it's time for Geithner to go. I don't buy his explaination that he was afraid the govt would be sued. BOGUS. He obviously still works for Wallstreet and AIG and not for the people of this country. He needs to quit or be fired. I do wonder if Obama new about this. He does have a lot to do and seems to have left all this in Geithner hands. It wouldn't surprise me if he didn't know until last week. He can't be everywhere at once though people seem to think he should be. That is what he have cabinet members for. But he obviously can't trust Geithner and it has gotten him into hot water. Get rid of him.

anne   March 19th, 2009 3:53 pm ET

Well, I think it's time for Geithner to go. I don't buy his explaination that he was afraid the govt would be sued. BOGUS. He obviously still works for Wallstreet and AIG and not for the people of this country. He needs to quit or be fired. I do wonder if Obama new about this. He does have a lot to do and seems to have left all this in Geithner hands. It wouldn't surprise me if he didn't know until last week. He can't be everywhere at once though people seem to think he should be. That is what he have cabinet members for. But he obviously can't trust Geithner and it has gotten him into hot water. Get rid of him.

Tom in Delaware   March 19th, 2009 3:53 pm ET

Mr. Geithner, Mr. Geithner, your reservation underneath the Obama Bus has just been confirmed.

Norma   March 19th, 2009 3:53 pm ET

There is not one Politician that can be trusted, not one. It used to be an honer to represent your state, now you are no better than menbers of the crime syndicate, only difference being, you are able to get away with it.
Please find the few that voted against the stimulas packages, and those are the only ones that deserve any honor, they are the only ones that voted according to the peoples wishes, where were they in the November election?.
Our President panicked and acted in haste, this is the man that not only has power over our money, but also our lives, now we panic.
Very scarry and sad situation.

Lotta Muni   March 19th, 2009 3:52 pm ET

And while everyone focuses on the $165 million in the left hand, poof, the illusionist makes $700+ billion disappear from our pockets without us even noticing, just like magic!

Rivertrip   March 19th, 2009 3:52 pm ET

Wasn't Dodd the one that received the largest "contribution" from AIG?
Is this the change we can believe in?

My boss has been a life long democrat.

He now says he is a confirmed Independent.

Wake up everyone!! Do not march lockstep with either major party.

John G   March 19th, 2009 3:52 pm ET

This is like the third person to take responsibility! Fix it and stop talking about it!

gl, Pittsburgh   March 19th, 2009 3:52 pm ET

President Obama was in a no win situation becasue the Republicans was calling the President Socialis and nationalizing the banks.

Al   March 19th, 2009 3:52 pm ET

BONUSGATE

For the good of the new administration, Mr. Geitner should step down immediately. The President needs to investigate what happened, particularly Senator Dodd's role, and give full disclosure to the American people. Most Americans, like me, have great hope for our new President, but he must get all of the bonus money back, and tell the American people what really happened. We don't need more senate hearings, special prosecutors, or wasted money, we need the transparency and honesty that Barack Obama promised. Mr. President, don't let us down.

Wolf-Woman Palin Charlotte, NC   March 19th, 2009 3:52 pm ET

The dang thing about this is the Repubs are having an orgasm in that these bonuses take the ligt off those who brought this recession in the first place... they did!

Los   March 19th, 2009 3:51 pm ET

OK, all you people calling for his resignation, how about you offer some solutions instead of just gripes: WHO SHOULD TAKE HIS PLACE THEN?

sharon   March 19th, 2009 3:51 pm ET

The partial solution is enough pressure on the president to start cl eaning house....before things get too far out of control, and Obama needs to start monitoring his group more closely, instead of making excuses. I am convinced that his lack of experience is causing him problems. I also think that instead of his junkets perhaps he needs to stay at the office and do what he was elected to do. As for Dodd and the others we will have another election and I hope Americans will remember what has happened , when they vote!

an american first   March 19th, 2009 3:51 pm ET

So all economists are now agreeing that "We have avoided a Great Depression-2 scenario". Instead of naming Geithner as the "Person of the Year" because of this quick 8 weeks turnaround, we are all outraged about this $165 millions in bonuses. This may be the biggest distraction ever. This is exactly why we haven't yet fixed our healthcare, education, and social security issues. Because we are all distracted by the next story.

Think about this – $165 millions is actually 1/10th of 1% of the $161billions that are given out to AIG so far. Let me repeat, it is 0.10% of total money handed out to AIG. Stop this emotional nonsense yall and let's get this economy fixed with some real debates.

CC   March 19th, 2009 3:50 pm ET

Don't let the door hit you on your way out you lying little twit!

candian pov   March 19th, 2009 3:50 pm ET

Oh but Joe Average can have his collective bargaining agreement tossed out so the Big Three can survive but the cheats that got the world into this mess are bound by their iron clad agreements? A den of thieves is what they are.

slickingdom   March 19th, 2009 3:49 pm ET

Let's not go crooked, here Timmy.....So far it's:

Timothy Geithner
Roland Burris

Any other Democrats care to sign up with these two ??

Proud Soldeirs Mom   March 19th, 2009 3:49 pm ET

Bush didn’t bail out AIG the first time, the Federal Reserve did, without Congress or the President’s approval. The guy who signed off on that bailout was the head of the New York Federal Reserve at the time, Timothy Geithner.

AndyB   March 19th, 2009 3:49 pm ET

ha ha This is funny. All the righties are calling for a resignation LOL They want their pound of flesh and they want it now. Well toooo bad.
What goes around comes around.

Proud Soldeirs Mom   March 19th, 2009 3:48 pm ET

For those that blame Bush for the first AIG bail out, Bush didn’t bail out AIG the first time, the Federal Reserve did, without Congress or the President’s approval. The guy who signed off on that bailout was the head of the New York Federal Reserve at the time, Timothy Geithner.

Richard Wilson   March 19th, 2009 3:47 pm ET

They basically stole money. Legally, unfortunately. However extremely unethically, leaving the only reasonable option as the resignation of both Geithner and Dodd.

Eric   March 19th, 2009 3:47 pm ET

Well at least they admitted to it-unlike Bush/Cheney. I mean they aren't hiding anything-we know what's going on. I honestly believe them.

Susan from Scotts Valley, CA   March 19th, 2009 3:47 pm ET

The bonuses are BS but that's AIG's fault to structure bonuses for individuals who do not benefit the company. And as a tax payer, I certainly would prefer not to give money to such a poorly run company. But we had to bail out AIG. And the bonuses are part of contracts. People seem to forget that in all of this outrage. The only way AIG could get out of the contracts (and maybe not even then because they're related to employment) would be to file bankruptcy.

As an employee, if I had a contract to be paid a certain amount of money, I wouldn't want the government to come in six months or one year after I signed that contract and strike my contract down.

brett   March 19th, 2009 3:47 pm ET

how can we trust Obama to pick him? what is next? that is alot of people who has LOOPHOLE... geez!

He MUST RESIGN.

So Dodd, too!

That is why i dont support to have FULL government control.. only support to limit goverment control.. that is why they make the LAW to protect people's FREEDOM!

Full Control Goverment = NO FREEDOM!

History show proves! Do your homework from 1787 to 2009.

Think twice in 2012.

Brian Crooks   March 19th, 2009 3:46 pm ET

@ Paul from Phoenix:

What sense does that make? The White House would sacrifice Geithner for Dodd, who's already probably going to either lose his re-election bid or just plain retire? Your tinfoil hat is on crooked. Leave the conspiracy theories to the sweaty guys with ponytails who wear socks and flip flops.

Chris A   March 19th, 2009 3:46 pm ET

Resign immediately. Geithner can't pay has taxes and Dodd can't tell the truth! Is this change we can believe in?

Ray Chicago   March 19th, 2009 3:46 pm ET

People we have a big problem with the economy I’m sure he doing the best he can with all the problems he had to deal with. Obama said the buck that with him. Only 60 days

obama-mama   March 19th, 2009 3:46 pm ET

I don't want to be mean but he should wear a baseball cap in all pictures or get a bang.

JJ12345   March 19th, 2009 3:44 pm ET

He doesnt believe that TARP and the stimulus bill were rushed???? Well if no one had the chance to read it I would hate to see what happens if something is rushed. What a moron

IL Voter   March 19th, 2009 3:44 pm ET

come on people. stop this blame game now. everybody makes mistakes. Block those bonuses with constructive laws and move on. so much to be done on infrastructure development.

Virginia   March 19th, 2009 3:44 pm ET

Well, well–at least two of the crooks have owned up to what they did. What about the 3rd one–namely our prez??? But he won't do that; as the headline in the story on CNN says, Obama taking the blame means move on. Of course he wants to move on so he won't have to take REAL questions about REAL problems. He needs to stay in the White House and deal with the economic disaster before him instead of holding "campaign" town hall meetings and going on Leno. He isn't a movie star or a candidate anymore!!!

Chris   March 19th, 2009 3:44 pm ET

Who are you trying to kid?

As long as the crooks (executives) get to keep their precious anonymity, there will be no lawsuits from them.

Sandy   March 19th, 2009 3:44 pm ET

It is time real Americans come together to save this country....It is time to demand the resignation Of Christopher Dodd, Timothy Geithner, and Barack Obama.

Dodd and Geithner need to be removed from office for fraud. Isn't it convenient that Obama and Dodd were the two top recipients from AIG during their respective camapigns. They tried to defraud the American taxpayer and got caught. Now they are jumping over each other to "take responsibility".

If the three of you really want to take responsibility for this crime, then please resign and turn yourselves in to The Atty. General.

I am a Barack Obama voter...I truly am. This man lied to me....and he lied to each and everyone of us that voted for him. He lied to each and everyone of us that sent him contributions. He lied to all of us.

Based upon his penchant for being dishonest, this man, like the last one is not able to carry out the duties of President of The United States. This man attempted to perpetuate financial fraud against us all.

I hate to say this...I hate to see the over 700 dollars I wasted of my hard earned money to send to this man during his campaign. I hate to say this about the man I spent countless hours going door to door for....but I was duped.

Mr. Obama is a criminal. It is time for the honest members of Congress to begin discussions of impeachment for financial crimes.

Thatsnobull   March 19th, 2009 3:43 pm ET

Boot Geithner and his million dollars bonus team out the door to include YES MAN Dodd .
Its a no brainer this country deserves better.

souzan   March 19th, 2009 3:43 pm ET

cammon every one how much you like that you have contract with some one and you do the job no matter how good or bad you are and after you get the job done they tell you sue us or get lost what is that.
we are in the US the contry of law what happen what i am missing.
just every one have some deap breath and think if you are a contactor and you get that get lost instead of your money what you will feel yes every one be carfull what you with for what goes around comes around

Nelson Colorado Springs Co.   March 19th, 2009 3:43 pm ET

Treasury Secretary Timothy Geithner should be fired today,

Frank   March 19th, 2009 3:43 pm ET

I haven't read or heard anything that Geithner has done to be fired or forced to resign. His only problem is he's an account who comes off as a geek and please the tax thing isn't worth firing. Considering stats show that over 89% of Americans have mistakes made on their income tax.

an american first   March 19th, 2009 3:43 pm ET

I don't think Geithner did anything wrong at all. He is right. If the contracts were nullified by the company that is not bankrupt – yes as a result of the bailout money – there will be lawsuits and we will all be outraged and the term "Socialism" would be used in every other sentence.

So it was a lose-lose scenario for Geithner, but he did the right thing by establishing a balance between "limiting" the executive compensation on taxpayers' behalf and avoiding to outrage wallstreet in general which would have resulted into lawsuits and more distractions from the real problem.

Ted - Ohio   March 19th, 2009 3:41 pm ET

We see something here that we've never seen in the last eight years. 1. An administration that owns a mistake (did anyone listen to Dick Cheney this past Sunday?)
2. A congress that actually does something to correct the mistake

If that is not change we can believe in, then nothing will ever be. Mistakes will happen, but the key is how you deal with them when they do happen. Good job guys, it's clear that change is happening.

Julie   March 19th, 2009 3:41 pm ET

I think what Liddy is calling for, a voluntary give back on the part of AIG executives, is far and away the best solution. It doesn't leave us open to expensive lawsuits down the line. It's what Geitner should have been pushing for to begin with. But, he probably wouldn't have gotten it without the public outcry. But, I'm with Obama, let's move on already.

Kpawlak   March 19th, 2009 3:41 pm ET

This is just another manufactured issue. The American people are being played like fiddles. The message — corporate America is bad, more government is good. Government is the good guy that is looking out for you and protect you from all those evil, greedy, rich executives.
Government will take care of all your problems...

They will also take your liberties too!

Obama Victim   March 19th, 2009 3:40 pm ET

a sleazy demorat.........who would have thought??

Jim   March 19th, 2009 3:40 pm ET

Bad move but at least they are taking resonsibility. That's somethimg the lat administration never did in 8 years. Fix it and move on.

roy   March 19th, 2009 3:40 pm ET

Obama, Dodd , Geithner, have all lied about this, so im guessing that this is the change we can believe in. If this was Bush and co. the liberals would be screaming for thier heads. Hypocrites!

meh   March 19th, 2009 3:40 pm ET

ray ray> Why be partisan about it? Why mention that they are Democrat? I don't get it.

JJ12345   March 19th, 2009 3:39 pm ET

Maybe now everyone will realize that all POLITICIANS are liars and cheats. It is not restricted to party affilation.

ranjit   March 19th, 2009 3:39 pm ET

Do we need any more proof that Tim Giethner is not just ready for being a treasury secretary? When is everyone is going to understand that, he was one of the architects responsible for AIG bail out under Bush Administration. So far, he has not done one thing right.

RahmAxleRod SuperTroopers   March 19th, 2009 3:39 pm ET

This is rediclous... I guess you shouldeve added a clause in your loophole: "if the public finds out, give back half"

Objective thinking   March 19th, 2009 3:39 pm ET

Obama is too popular for this to matter in a couple weeks. Even now, people are calling for the heads of everyone around Obama, but not Obama himself. People just refuse to think bad about him. Geithner, as Obama's chosen Sec. of Treasury, will end up keeping his position. If him breaking tax laws couldn't keep him out, then other execs at companies taking money in a distasteful but legal fashion won't keep him out.

Marcia, Marcia, Marcia in CA   March 19th, 2009 3:39 pm ET

All of these dirty politicians that we continue to elect over and over again need to GO!

Me   March 19th, 2009 3:39 pm ET

Does Richard Dreyfuss think Geithner belongs in jail too? What about Dodd? What about all the other tax cheats in Obama's administration?

Just curious.

flybyshoeing   March 19th, 2009 3:38 pm ET

I have no problem with this as the changed language still allows to go after the bonuses based on public interest. Why don't they just explain this stuff before it blows up in the media ? They are smarter than this.

Matt in MN   March 19th, 2009 3:37 pm ET

So if he takes full responsibility for this loop-hole, and given all the other issues, concerns he has already faced, in addition to the fact that he appears to be in so far over his head, he really should resign.

Ken   March 19th, 2009 3:37 pm ET

It does not matter if Geithner did or did not ask Dodd; Dodd should have said NO! Saying or asking it is one thing, but the action to do it is another!

The real criminals here are the AIG Executives and their own GREED!

Steve (the real one)   March 19th, 2009 3:37 pm ET

Why is it so hard for Geithner to admit it was him?:

Home Educator in Texas   March 19th, 2009 3:37 pm ET

The President's Treasury secretary, who received bipartisan confirmation despite nonpayment of some taxes, seems confused, not unlike a deer caught in the headlights. To make matters worse, the new secretary works as a one-man band. Of the 18 important undersecretary positions, none has been filled, with only three nominations currently under consideration. Two highly regarded undersecretary nominees abruptly withdrew their names, including one who many felt possessed significant expertise necessary to help the Treasury secretary explain and implement the administration's policies.

CAL   March 19th, 2009 3:37 pm ET

No matter what is said and done here this man will be criticized. Most people won't hear that geitner told dodd to put in a loophole because if they didn't they would be sued, they only heard treasury knew about the bonuses before they went out. Think before judging people.

This man has a lot on his plate, now add this to and the repubs are going to have a field day.

ANGIE   March 19th, 2009 3:36 pm ET

both dodd & this crook need to resign. President Obama can do better.

Lisa, MA   March 19th, 2009 3:36 pm ET

This was a big mistake and one that he should not have done. He only has a few chances to show America his character.

Mississippi Mike   March 19th, 2009 3:36 pm ET

Wow, the incompetence in Washington right now is breathtaking. Is Geithner being Obama's useful idiot or is he just an idiot? What we are seeing here is one of the worst 60 days in American history and we have only one person to blame. (Hint: His middle initial isn't W.)

KC   March 19th, 2009 3:36 pm ET

Talking out of the side of his mouth. I'm tired of the lies, deceit and audacity of this administration. They think Americans are stupid. They believe we don't care and we are going to let them get by with all this manipulation. What else do you think they have done that we haven't heard about? Seems to me that the Attorney General has been very quiet and "absent" lately. No telling what he is doing behind our backs. Egotists all of them. So was Hitler.

phoenix86   March 19th, 2009 3:35 pm ET

Time to go. There is zero credibility left in this administration. If he doesn't believe the stimulus bill was rushed through congress than he is an idiot and shouldn't be in Treasury.

As for Pelosi, Dodd and Frank rushing to punish individuals because Pelosi, Dodd and Frank screwed up, this is the most absurd abuse of power I have ever heard of. We are becoming a developing nation.

Dan W.   March 19th, 2009 3:35 pm ET

Secretary Geithner obviously does not share President Obama's vision of transparency. I understand his concern about the bonus contracts and lawsuits, but what he should have done is come out, and gone on every network, and told the public that they might have to put this loophole into the bill because of fear of lawsuits, and express outrage over it. The public would have been all over the AIG executives, Geither would have looked like a hero for exposing them, and this would never have happened! And, not communicating this to the President...just bad practice!

Jennifer NY   March 19th, 2009 3:35 pm ET

Everyone needs to calm down here. The media and now the politicians are blowing this thing way out of proportion. Mr. Geithner did what he could legally. I would like everyone to shut up and let him do his job.

Gene   March 19th, 2009 3:34 pm ET

Geithner really dropped the ball on this one. Instead of a bonus loophole to protect against being sued for breach of contract.. there should've been a provision that any companies accepting bailout money would be relinquishing any bonuses as a condition of receiving the money.

Happy in Arizona   March 19th, 2009 3:33 pm ET

This is a bunch of bull. Chris Dodd and Geithner should resign. You know as well as I do that this administration gets kick backs from these companies and therefore protect them at the taxpayer's expense. I am tired of hearing it's imperative we do something or everything will collapse. Let it collapse! The American people will then put it all back together. We certainly don't need these crooks.

Mike   March 19th, 2009 3:29 pm ET

Resign!

ray ray   March 19th, 2009 3:29 pm ET

Gaithner needs to be fired!

Dodd needs to resign!

Both are lying sacks of democrat dung.

Paul from Phoenix   March 19th, 2009 3:29 pm ET

I am not buying it. This looks like the White House using Obama's popularity to protect Dodd.

HelloooOOOOO   March 19th, 2009 3:28 pm ET

Since he knew of all this, he should NOT have pushed for the so called loophole ! He needs to be fired !

Firth Davenport   March 19th, 2009 3:28 pm ET

What can be said? After defending the democrats it all boils down to the same thing – all politicians are corrupt. This system of government that we have cannot sustain itself by continually lying to the American public.

Fredrick   March 19th, 2009 3:27 pm ET

The government is certainly going to face lawsuits now, especially with what Congress recently did.

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