March 19th, 2009
08:20 PM ET

Geithner informed about bonuses

Timothy Geithner explains when he knew about the bonuses paid to AIG executives. To see more of Ali Velshi's interview tune in to AC360° at 10pm ET tonight.

Filed under: AIG • Ali Velshi • Economy • Raw Politics • T1
soundoff (16 Responses)
  1. Justin N

    Geithner should not be held liable for the bonuses from the bail out money. If CCN consulted a legal expert on the legislation process, CNN could easily point to the liable party. Geithner may know about the bonus or recommend the change, he does not have the final saying in this matter. So the bottom line is the party who, has the LEGAL final saying.

    March 23, 2009 at 6:06 pm |
  2. RLWellman

    Since the economy is bad and companies are laying off, cutting back on spending, and watching what they are buying, don't you think the Government should be doing the same? They are spending more money then ever before. Trying to become larger, not smaller. Spending so much money no one knows where and what it is going for!
    They must think all Americans are stupid!

    March 23, 2009 at 9:52 am |
  3. RLWellman

    Why are we worried about the AIG bonuses? The Government is in the process of spending more and more money. This should be stopped. Some one should be reading the stimulis bills to see what else has been missed and who is going to get the money.

    March 23, 2009 at 9:46 am |
  4. Ray Ellen - Lake Tahoe, California

    While sharing the outrage with the rest of the American people in regards to the AIG bonuses, tough times call for tough decisions and if the US Treasury really felt that there were some legal issues involved in the bail-out plan for AIG (as was amended to include corporate bonuses prior to February 2009), why doesn't the White House and US Treasury key figures become proactive instead of reactive – they obviously know the media is going to break the story – why don't they speak to the American people and let them know that something (in this case the bonuses) is coming down the pike and simply make the people aware that they are indeed in touch with the real situation, give their reasoning, and why we need to move forward? This makes more sense than all of the resulting public outcry. Am I not alone in my thinking when we have to turn yet another page on this continuing crisis? Proactive – not reactive is the key here to all honest people wanting to make a change.

    March 20, 2009 at 9:00 pm |
  5. Frank Wren

    What the hell is going on! All of these corporations, we the tax pays, are bailing out with the money we could be using to better educate our children, advance health care, help the poor and take better care of our veteran actually believe that they are not required to be held accountable for their lies and deceit. AIG management believes that they are "entitled" to bonus for sucking billions from the tax pays and now, while I'm watching college basketball, I see GM offering scholarships to colleges. Only in American could a poorly managed company, like GM, give away college scholarships with my tax dollars and I couldn't even afford to send my sons to college! One of them had to join the Navy and the other joined AmeriCorps in order to go to college. I'm sure that the children of these CEO(s) didn't have to take years out of their lives to go to college. You think maybe, just maybe, when we the tax pays, like these corporations, should stop paying our taxes also!

    Frank Wren, St. Louis MO

    March 19, 2009 at 9:41 pm |
  6. alfred

    Just curious. What happened to all the money in the world?

    March 19, 2009 at 9:27 pm |
  7. AG

    Why don't we peel the layers of the onion on this? Dodd wrote the amendment with consultation from Treasury and the Obama administration. The amendment inserted into the Stimuls Bill that no one read and passes without review. Dodd and Obama both have received over $200K combined in campagin contributions from AIG. AIG is used a clearing house to pay back foreign banks who were in-eligible for TARP funds. This is just the tip of the iceberg here and the public expects the media to hold these public officials accountable. ASK THE HARD QUESTIONS!!!

    March 19, 2009 at 9:27 pm |
  8. Terry Sams

    So. My question is, aren't most of the people who got the bonuses living in London? Possible British citizens? Is it possible we saw a good portion of the $165 million go to foreign citizen's who won't pay the income tax in the proposal working its way through Congress?

    March 19, 2009 at 9:15 pm |
  9. David Lawhorn

    I would like to write to you a plan I have for the economy. Instead of pouring money into a money pit as we have been doing. Would it not be the simpler thing to give the stimulus money to the American people? Give every home owner $100,000.00 that must be applied to your mortgage. That would be a load of help to people who are in default. This would also in my case give us a nice payment on our home. We are not in debt and good standings. This would be fair all around. As all people I fear losing my job. Putting this kind of money in our economy in this way would guarantee a direct response. This would really get the peoples morale up. I could see hope in that. The banks in turn would have this money to lend. AIG has showed us over and over what they do with the cash. Giving money directly to the people on their mortgage would give the people so much more hope. With the kind of money that has been dealt. We could afford that. With $100,000.00 on my home and it’s paid off in 3-5 years. This would seem to me a simple to the point plan. I have heard a few people say the same thing. Please consider this or something similar.

    David In VA

    March 19, 2009 at 9:14 pm |
  10. Michael

    Ok, so the treasury secretary knew that there were employment contracts (retention) that compelled AIG to pay bonuses. Where's the story in that? Retention packages are commonplace in many sectors of the economy and although common sense would have dictated that retention in this case was not a good idea, the fact is that the company was contractually bound to pay them.

    I think the real story is how many idiots we have in Congress that think a tax on these bonuses isn't going to be challenged in court and Congress will be on the losing end of the lawsuit. Maybe they do know it and this is all political show as usual.

    March 19, 2009 at 9:02 pm |
  11. Dave

    Each day that goes by, the madder i become. I unfortunately received an overdraft from my bank today. It took half my wage check!!!! Then see this crap on tv again with these losers. AIG, congress, and others involved should be put in prison. If any of us would have embezzled etc wed be in jail now. Whats wrong with these people. Maybe we should take back our Country and put these law breakers behind bars or do like in the old west-hang em. We struggle day by day and these butt holes pull the wool over these idiots in washington. Why not let us not pay income tax for a whole year. They get by with it!! Congress etc are just putting on a show for us like they always do. Just a big put on. I dont believe it and havent in the past either.

    March 19, 2009 at 9:00 pm |
  12. P.Smith

    I have no idea what the big fuss is about. Treasury secretary Geither and the Obama Administration has just laid down the biggest political master stroke of the last 8 years in giving AIG additional bail-out money. Can you think of a better way to flush out AIG's greed clan?

    March 19, 2009 at 8:59 pm |
  13. Julia - San Antonio TX

    Why are we surprised this blatant ‘bonus’ activity is still happening? It’s the same old cronyism, or quid quo pro, or I’ll cover your back behavior that has progressing gotten worse in both parties. The stench of foul play by our lawmaker politicians is unbearable. Congress is incapable of fixing the problem. The Obama administration has already said -it happened, now let's move on, thus far, it's a quid quo pro to me.
    Another point, what gives Obama the right to say in California “I know how you feel” when it’s the working poor that is paying his rent and buying his fuel, etc.

    March 19, 2009 at 8:58 pm |
  14. Joe G. (Illinois)

    So.. if the Treasury Secretary can basically do the same job of the Press Secretary without the fan fare of all them offensive and derogatory put me/you down analogies..? What’s the purpose of either one of them..? And just what is the bill we are footing here? “Aside from all the Trillions of dollars in Collateral's?”

    March 19, 2009 at 8:50 pm |
  15. Bar

    It is very entertaining to hear all these politicians complain about this clause in the bailout legislation that allowed AIG to pay the bonuses. As outrageous as the bonus payments are, I would argue that equally outrageous is the fact that the same people that are complaining about this (Congress members) are the ones that were supposed to adjudicate the legislation before it became law.

    It is obvious that the majority of the members did not even read the document which is the real outrageous point here. All of the members are to blame for this!

    This is the angle that this news topic should be reported. Every member that voted in favor of this legislation also voted in favor of the clause that allowed AIG to pay the bonuses.

    March 19, 2009 at 8:46 pm |
  16. Annie Kate

    From this small segment of the interview it sounds like that legally we could not block what had already been agreed to contractually. But we could go in after the fact to try to recoup those payments and that is what Geithner and others in Treasury and Justice were going to try to do. If that is correct and not a misrepresentation then it sounds like they did the only thing legally open for them to do and we should let the situation play out and see how much we can get back. No one seems to like these bonuses except for the people who received them.

    March 19, 2009 at 8:29 pm |

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