It is with a great deal of cynicism and a bit of remorse that I announce this week's winner of the 'Swag Award,' but I think the actions taken by Treasury Secretary, Timothy Geithner, Senator Chris Dodd & AIG CEO Edward Liddy over the last few days warrant an award of some sort.
In my first post, I said that swag was a loosely used term which has a different interpretation depending on whom you ask. The First Swag Award went to Manny Ramirez for turning down a substantial contract with the Dodgers, despite the fact that no other team was bidding for his services. The following week, Kurt Warner won for doing the polar opposite; agreeing to take less money to finish his career with the Arizona Cardinals. Last week, the Syracuse Orange basketball team won due to the tremendous amount of heart they displayed winning 3 games in 4 nights, 2 in overtime, as they nearly walked out of New York City with another Big East Championship.
Tim Geithner, Chris Dodd, & Ed Liddy had that kind of swag this week that makes you say "I can't stand that ______(your choice of expletive). The kind of swag that makes you say "I can't believe they did that." Well guess what? They did it.
The backlash from that move was widespread and extremely vocal. Leaders on Captiol Hill and average Americans alike were outraged that AIG, which has received a substantial amount of government dollars to stay afloat would then turn around and give bonuses to members of its financial products division; the same division that made the decisions that ultimately lead to the demise of AIG's financial stability. Tim Geithner's capacity to do the job has come in question, and many ask if he is a liability to the Obama administration. There have been protests on Wall St., and AIG executives and their families have been accosted near their homes by furious citizens.
Treasury Secretary Tim Geithner has been taking heat since this news came out, because ultimately it is his job to make sure something like that does not happen. Prior to becoming Secretary of the Treasury, Geithner was President of the Federal Reserve Bank of New York where he made inroads and built relationships with all of the execs and firms he is now criticizing for their frivolous policies.
Senator Chris Dodd, (D) Connecticut, is the chair of the Senate Banking Committee, and his group along with Geithner's bunch worked together to draft and pass the huge spending bill that was signed into law a few weeks ago.
When journalists began to dig to find out who inserted the loophole to allow AIG to distribute bonuses, Chris Dodd's name surfaced as someone who may know more. When questioned originally, Chris Dodd denied having anything to do with it, saying when he left the bill that language about bonuses was not in the bill. The very next day, he recanted those statements and accepted responsibility for the loophole saying he did it at the behest of the "administration" which he qualified as the Treasury Dept (Tim Geither & Co.)
Watch Dodd's denial and correction here:
Chris Dodd is not the only one who has not been completely truthful this week. Originally Tim Geithner claimed that he was not made aware of the bonuses until last week, but we have since found out that the issue was raised on March 3 in a meeting with the House Ways & Means Committee.
As a result of all of this, President Obama has had to go on the defensive for Tim Geithner and his economic plans. He expressed his outrage over the bonuses earlier this week, and implored Congress to do what it could to try and recoup some of that money. Congress overwhelmingly passed a 90% tax on bonuses paid to execs at AIG and other rescued firms. Future rescues have also been placed in jeopardy as a result of Geithner & Dodd's actions, as congressional leaders may be wary of approving large amounts in the future.
I also have to bring Edward Liddy, CEO of AIG to the stage as well. After the bill had been signed into law, it was his decision to go ahead and approve doling bailout money for executive bonuses because they were contractual. Yes it was legal, but morally, was it really the right thing to do? The moral compasses of Geithner, Dodd and Liddy are about as accurate as Christopher Columbus' compass when he landed in the Dominican Republic & called it America.
As I said at the beginning of this post, I gave these guys the award with cynicism and remorse. There is a fine line between having swag and being an a$$ho!e. The brazenness, insensitivity, and irresponsibility Geithner, Dodd and Liddy have displayed over the last few days towards the American people is astonishing. Despite their shortcomings, every a$$ho!e has some redeeming qualities. America, and the rest of the world hopes that these men redeem themselves sooner rather than later.
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