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AIG time line. What Geithner knew when

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Below from the White House

TUESDAY
Secretary Geithner finds out about impending bonuses

WEDNESDAY
After 6pm, Geithner calls Liddy to express outrage and says payments are unacceptable and Liddy need to go back and renegotiate.

Secretary Geithner and Treasury lawyers look for legal solutions to not paying the bonuses.

THURSDAY
Secretary Geithner informs the White House. Later in the day, senior aides inform the President.

Secretary Geithner and Treasury lawyers continue looking for legal solutions to not paying the bonuses.

FRIDAY
Secretary Geithner and Treasury lawyers continue looking for legal solutions to not paying the bonuses until the last possible legal moment.

Secretary Geithner speaks with Liddy again and after some back and forth, AIG agrees to:

cut bonuses in half and to stretch the exec bonuses (that fall outside our contract with them and our FSP rules) out overtime, so that execs are more on the hook for the successful wind down of the company, which is the best way to protect taxpayers

[Rather than the Senior Partners (top approx. 50 people) getting an aggregate of $9.6M in bonus now, they will get 50% in cash now (avg. payment of approx. $112K), plus 25% on July 15 and 25% on September 15 (avg. payments of approx $56K each). However, both of the 25% payments will be contingent upon the Board finding that the steps in the disposition plan are being met at each payment date.]
renegotiate and reduce 2009 retention bonuses.
recoup the money in 30 billion AIG restructuring agreement
Following the conversation, Secretary Geithner asks for Liddy letter to codify the changes.

SATURDAY AND SUNDAY
Following deadline on Friday, treasury attorneys continue to look at legal solutions for recoupment.

SUNDAY EVENING
POTUS asks the economic and legal team to continue looking for ways to recoup the bonuses.


Below from the White House

TUESDAY
Secretary Geithner finds out about impending bonuses

WEDNESDAY
After 6pm, Geithner calls Liddy to express outrage and says payments are unacceptable and Liddy need to go back and renegotiate.

Secretary Geithner and Treasury lawyers look for legal solutions to not paying the bonuses.

THURSDAY
Secretary Geithner informs the White House. Later in the day, senior aides inform the President.

Secretary Geithner and Treasury lawyers continue looking for legal solutions to not paying the bonuses.

FRIDAY
Secretary Geithner and Treasury lawyers continue looking for legal solutions to not paying the bonuses until the last possible legal moment.

Secretary Geithner speaks with Liddy again and after some back and forth, AIG agrees to:

cut bonuses in half and to stretch the exec bonuses (that fall outside our contract with them and our FSP rules) out overtime, so that execs are more on the hook for the successful wind down of the company, which is the best way to protect taxpayers

[Rather than the Senior Partners (top approx. 50 people) getting an aggregate of $9.6M in bonus now, they will get 50% in cash now (avg. payment of approx. $112K), plus 25% on July 15 and 25% on September 15 (avg. payments of approx $56K each). However, both of the 25% payments will be contingent upon the Board finding that the steps in the disposition plan are being met at each payment date.]
renegotiate and reduce 2009 retention bonuses.
recoup the money in 30 billion AIG restructuring agreement
Following the conversation, Secretary Geithner asks for Liddy letter to codify the changes.

SATURDAY AND SUNDAY
Following deadline on Friday, treasury attorneys continue to look at legal solutions for recoupment.

SUNDAY EVENING
POTUS asks the economic and legal team to continue looking for ways to recoup the bonuses.


3 Comments

Personally, I detest being lied to...by anybody! And, the President's pathetic on-camera "choke"...(with "anger", or so he claimed)...has really made me see "red"! It seems as if Obama is a master salesman...but, a rancid "ham" of an actor...feigning "upset" at the "news" of the AIG bonuses! Instead of wading into the fray, and demanding an explanation, last week, it appears that he and Geithner decided to hide behind the couch, until stuff hit the fan!! No "Profiles in Courage", here, and I won't forget this insulting episode...

Geithner, to many Americans, carries a decided "stench" about him, as it is. This AIG thing has not been either his, or the President's "finest hour". Just when it appears that the Obama White House might have gotten its "sea-legs", here comes yet ANOTHER poorly-handled...sloppy...and, highly-charged controversy! And, it certainly doesn't help clear the air to have Press Secretary Robert Gibbs give his press briefing, yesterday, completely unable to answer most of the questions lobbed at him concerning the AIG bonuses! If it wasn't "uh...uh...uh...", while staring down at his podium, it was "duh...duh...duh...", becoming defensive with snide quips, and giving not a coherent, informed answer, in the bargain! Whether Gibbs and the President have become far too impressed with themselves to perform their jobs with the care and expertise that we expect from them, or they are both content to enjoy the accoutrement of the White House...for only ONE term! Challenging times demand a firm hand on the tiller, and not people who feign "anger" for the television cameras, or those who cannot address the press with as much background and information as can reasonably be expected...

If you thought it couldn’t get any worse than Bush. The dems are spending more and making grossly incompetent mistakes. Here is the latest (quite shocking) of their trillion dollar blunders:

Cap Schmap:
http://www.butasforme.com/2009/03/17/obamas-stimulus-bill-explicitly-grants-aig-the-legal-right-to-hand-out-bonuses/

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Lynn Sweet

Lynn Sweet is a columnist and the Washington Bureau Chief for the Chicago Sun-Times.

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This page contains a single entry by Lynn Sweet published on March 18, 2009 12:33 PM.

Michelle Obama--in major rollout--invites female stars, role models to talk to students was the previous entry in this blog.

Liddy, after resisting, tells House AIG panel he will ask for voluntary refunds of some bonus money is the next entry in this blog.

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