WASHINGTON (CNNMoney.com) – Treasury Secretary Tim Geithner said on Thursday that he had no choice but to pay top dollar to business partners of troubled insurer AIG to avert a deeper financial panic last year.
Geithner defended regulators' actions to prop up American International Group (AIG, Fortune 500) with $62.1 billion that was essentially funneled to 16 banks that were counterparties to AIG insurance contracts.
"I don't understand why this is so complicated," Geithner told the Congressional Oversight Panel at a hearing on Capitol Hill. "You either prevent default, because default would be cataclysmic – or you don't. If you selectively default on any, the thing will come crashing down."
Which is worse aig failing or the government destroying our republic?
shouild have baile dout he american people and reduced thier debt.
Dodd said it was a good thing so it has to be true...........
"I don't understand why this is so complicated"
He'd understand if he DID pay his taxes.
Interesting choice of word "default". When it looks like this country might default on the deficit by exceeding the debt ceiling what is Nancy Pelonsi's solution? Let's rais the ceiling. I have a better idea. Let's curb the spending. Then maybe we could actually start lowering the ceiling.
This is ridiculous. If we hadn't propped up AIG it would have defaulted on its huge collection of CDS (Credit Default Swaps). Several thousand major financial deals would have been automatically voided upon such a default. The dominos would have fallen, and it would have been 1928 all over again.
I didn't like the bailouts, but I had sense enough to recognize that they were the only option we had. Now that we're back from the edge of the abyss the people who largely caused the disaster are second-guessing the people who saved all our hides.
What Mr. Geithner actually doesn't understand is not "why this is so complicated" but rather why it is so simple. Allow me to try and explain it to him: after ripping off non-wealthy, non-ruling class for decades, wealthy, ruling class steals even more cash from non-wealthy, non-ruling class, which results in wealthy, ruling class becoming even wealthier and rulier, and non-wealthy, non-ruling class becoming even non-wealthier and non-rulier.
Any questions, Mr. G?
This guy is one of the biggest crooks ever to hit Washington...
Geithner needs to be indicted and convicted for abusing the public trust and using taxpayer funds to pay off his political and financial allies AT TAXPAYER EXPENSE. He's a crook and a thief of the worst kind. I'd seek the death penalty for his financial crimes against humanity.
I didn't cause their problems so why should I help bail them out.
I wish everyone of would stop spending my tax dollars and balance the budget like we have to with our own.
Pwm we need a raise in are social security im working on a job and my pension we had to cut backjust to make it
Pkm the bosses will still get a hugh bonus