The head of AIG who came out of retirement for $1 to try to clean up the mess there tangled with congress yesterday and the result wasn’t pretty…for congress:
He also proved himself a cut above those who aimed to make cheap headlines at his expense. I’d pay to see him question Congress on its role in the economic mess.
Most important, he revealed the dirty little secret that much of Washington knew and approved of AIG’s promises to pay retention bonuses to members of its financial products unit. That revelation came early in Liddy’s testimony and punctured the hot air balloon.
Liddy’s matter-of-fact claim directly implicates the Federal Reserve, which he called the “gatekeeper” for the 80% of AIG owned by the taxpayers. He also said Treasury Secretary Tim Geithner knew of the bonus plan nearly two weeks before it became public.
Over to you, President Obama
Between this and the Dodd yes I did no I didn’t twist, the Fannie Mae Bonius’ and the questions about the actual congressional votes this is turning into a debacle and a half for the administration.
My economic plan is looking better and better.
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