Archive for the ‘Timothy Geithner’ Category

AIG’s excessive bonuses of $165 million infuriate Americans

March 18, 2009

It is if the world has to be reminded that greed is alive in the failing financial institutions bailed out by the US government. After American International Group Inc. (AIG) received its 170 billion rescue package, it has allotted $165 million to pay for company bonuses. This is very infuriating for the ordinary citizens who contribute tax dollars to help prop up the ailing economy.

“Fresh details pushed outrage over AIG ever higher: New York Attorney General Andrew Cuomo reported that 73 company employees received bonus checks of $1 million or more last Friday. This at a company that was failing so spectacularly that the government felt the need to prop it up with a $170 billion bailout… On Capitol Hill late Tuesday, House Democrats directed three powerful committees to come up with legislation this week to authorize Attorney General Eric Holder to recover massive bonus payments made by companies like the ones paid last week by American International Group Inc.” —–Yahoo News/ AP (03/17/09, Kellman, L)

Will the US government recover the bonuses? Who knows?

Republicans blamed the democrats for doing little in preventing this scandalous diversion of money. The giving away of hefty bonuses wasn’t done by AIG alone, but politicians in Washington are feigning outrage. Earlier Merrill Lynch paid $3.6 billion in bonuses to its executives while it negotiated its sale to Bank of America Corp., a big recipient of government bailout.

The rescue packages for ailing businesses and financial institutions which made bad decisions aren’t politically popular. It gives a bad rap on the Obama administration. Innocent people in the street are suffering for the big companies who take advantage of the bail-outs.

A growing number of irate Americans think Treasury secretary Timothy Geithner did little to prevent the giving of excessive bonuses to happen. It is believed that he knows about this bonuses early on. There are those who opine Geithner whose appointment by Obama was questioned because of failing to pay taxes must be fired.

Party supporters of Obama want the return of the bonus money to the government prompting democratic senate majority leader Harry Reid to say recipients will not be allowed to keep the money. Many Americans however are distraught to realize how untrustworthy the deals have been, compromising the taxes they give the government. They can’t fathom how leaders could be so arrogant,, extravagant, and callous to have these massive bonuses at the expense of American taxpayers—at a time when they are saddled by joblessness, loss of savings and pension plans, a slump in housing market, and bankruptcies of businesses and financial institutions. (Photo Credit: drugs crews 2)=0=


Obama gets a low grade from Wall Street economists

March 13, 2009

Midway thru Pres. Barack Obama’s post-election 100-day honeymoon period is an erosion of popularity. In spite of his “heroic” effort in trying to steer the US to the “right “ track, the new president gets a failing grade of 59% from majority of 49 Wall Street economists polled. According to the Wall Street Journal Survey, financial thinkers are dissatisfied with Obama’s economic policy. The Dow Jones fell close to ¼ of its value at the 7 weeks of his administration.

Treasury secretary Timothy Geithner who assumed his position in the Obama cabinet in spite of evading to pay taxes has a poor grade of 51%, while Federal Reserve Chairman Ben Bernanke scored better, with an average 71.

The changing result augurs badly for Obama who has enjoyed extraordinary popularity before and after the election. The high expectation is there, but he is tumbling down from the sky putting down his public approval to about 60%—quickly in just a few days. Considering the media’s slobbering love and public admiration for Obama, the downward trend of his approval rating is unexpected.

It’s a concern that Americans who disaprove of his policies are rising. The trend is a significant negative twist on how the public perceives his performance even if he was heralded as the hero who’ll deliver America and the world from economic woes. There is strong doubt if Americans can spend their way from bankruptcy by borrowing at the expense of current tax-payers and the next generation.(Photo Credit: tsevis) =0=

RELATED BLOG: “Fearless economic forecasts” Posted by mesiamd at 3/11/2009