Over the past ten days, as the furor over AIG retention plan
bonuses has focused on Sen. Chris Dodd and
Secretary of the Treasury Timothy Geithner, the
White House has undertaken a PR offensive to protect the highest
ranking Obama Administration official who was involved in the
House and Senate negotiations over the stimulus bill, in which
the AIG waiver language was inserted.
“Right now, you get the feeling this is all about protecting
[White House Chief of Staff] Rahm Emanuel,” says
a former Treasury Department lawyer, who worked in that
department’s counsel’s office on the Troubled Asset Relief
Program (TARP) before joining a D.C.-based law firm in February.
“At the time, we were led to believe there were basically three
or four people from the Administration at the table when the
final deals were cut and one of them was Emanuel.”
Informal advisers to Geithner are growing increasingly
frustrated, they say, that Geithner is being held up as the straw
man for the public anger over the bonuses. “Just over the weekend
you saw a new guy added to the target list, [White House
economics adviser Larry]
Summers,” says a longtime Geithner colleague at
the New York Fed. “You have Dodd, Geithner, Summers, but there
were other, more senior political people involved in this mess,
and their names aren’t being mentioned. Why isn’t anyone asking
Rahm Emanuel, ‘What meetings were you in?’ ‘What did you and the
President know and when did you know it?’ Tim has some
culpability, but he’s not the guy who signed off on the Dodd
language. He wasn’t that empowered to do something like that.”
Yesterday, Obama supporter and New York Times columnist
Frank Rich fingered
Summers as a key player in the AIG bonus mess. “Summers is so
tone-deaf that he makes Geithner seem like Bobby Kennedy,” Rich
wrote.
Summers currently serves as head of the National Economic Council
in the White House, and has been mentioned as someone who might
be forced to return to the Secretary of the Treasury post he once
held in the Clinton Administration should Geithner not survive
the political storm he finds himself in.
It isn’t just Rich, though, who has placed Summers in the center
of the controversy. Last week, Sen. Ron Wyden,
who was led to believe that language he was inserting into the
stimulus bill, which would have heavily taxed such payouts as the
retention bonuses, told reporters that it was the “Obama economic
team” that stripped his and Sen. Olympia Snowe’s
provision from the bill. When he was asked about who he dealt
with during the February negotiations over his language, he said,
“Secretary Geithner, Larry Summers, and I’ll leave it at that.”
He declined to name other names, though he indicated to reporters
present that he was aware of others in the negotiations.
Senior Democrat leadership aides in both the House and Senate,
however, insist that both Emanuel and Office of Management and
Budget Director Peter Orszag were present at the
meetings where the decision was made to strip out the bonus
taxation language and insert the Dodd waiver.
Further complicating the situation is that at the time of the
negotiations, Geithner had in his possession Treasury Department
memorandums outlining November negotiations between the
department’s counsel’s office and AIG officials over the very
retention bonuses that were preserved in the final bill.
As early as November 5, 2008, AIG lawyers and senior executives
and Treasury officials were in negotiations over just which
bonuses and retention-plan payouts could and could not take
place. “We indicated that UST wants to put in place a limitation
on annual bonuses that assure that AIG executives/employees will
not be enriched out of TARP funds,” wrote a Treasury official to
colleagues involved in the negotiations.
In preparing Geithner for the stimulus negotiations, Treasury
staff provided him, as well as Obama Administration officials,
detailed memorandums outlining the extensive negotiations the
agency had had with AIG, among other financial institutions,
about bonus payouts, and recommending steps that could be taken
legislatively to at least limit taxpayer exposure.
“[Geithner] had the information,” says the former Treasury
lawyer. “What he did with it we don’t know. But our input didn’t
seem to make much of a difference in the room when it mattered.”
Neither did Republican input; no Republicans were present in the
negotiations in the Speaker’s office. Both Nancy
Pelosi and Harry Reid, who served as a
conference manager on the bill, barred Republicans from the
negotiation table.
And, surprisingly, neither was Chris Dodd, who was not one of the
three Senate managers for the conference negotiations.
So the mystery remains: who had final sign-off on the Dodd
language insertion on AIG’s retention bonuses? One thing seems
certain, Rahm Emanuel isn’t talking, and neither are Pelosi or
Reid, who were also in the room with Emanuel, Orszag, and Summers
when the final language was worked out.
jack| 3.23.09 @ 6:34AM
Still would like to know if Emanuel was involved in the looting of Freddie when he was on that BOD.
Would also like to know how he made 16 million his first year out of clinton admin?
Isnt Dodd one of the Countrywide 6? Why arent they being prosecuted for taking bribes from the Tan Man at Countrywide?
Deborah | 3.23.09 @ 6:37AM
Rahm (a four-letter word!!)
I'm sure his sticky fingers are everywhere. Nothing like bringing Chicago politics nation-wide -- where if you grease their palms, they'll grease yours. No matter what laws are broken, or destructive policy prescriptions.
Like I said in another post...politicians have to be sociopaths, otherwise they couldn't look at themselves in the mirror. No conscience, no problem.
Rocco| 3.23.09 @ 6:42AM
This administration is rapidly becoming a ship of fools with no one at the helm, and it is rapidly heading to the falls.
Once again I ask, where is the voice of the Republicans? (and to head off criticism from those with fragile egos, I mean the professional Repub, the supposed leadership of this party, not rank and file!) They seem to be as much asleep at the wheel.
drudge ette obama| 3.23.09 @ 7:48AM
Rocco, you are right to make this point. I want to see someone scream with a deadly stare that this is all wrong and then say why.
I want each and every Senator who swore to uphold the Constitution explain how the hell they could vote for a law that taxes ex post facto in nature. There are no legal bills of attainder in this country. And then I want the American people, whomever is left, to vote their sorry bottoms out of office.
And I want some serious journalist to demand from Obama, Pelowsi and Reid a yes or no answer whether Rahm was in on it. Definitely, he was. Again, this progressive behind-the-scener is not an Andy Card.
Luonne Dumak| 3.23.09 @ 9:14AM
The Republicans were not asleep. They were talking about the fact that they were not part of the deal and were locked out of any decision making. The trouble is the MSM does not report those facts. I happened to catch a Group of Republicans having a meeting with the media on C-span. Don't depend on the MSM to tell the whole truth or any truth what so ever.
Marc Jeric| 3.23.09 @ 9:26AM
Sir: Jamie Gorelick, when she was Assistant Attorney General in charge of the FBI, issued the order threatening jail for any FBI agent sharing terrorist information with the CIA. The result was the attack of 9/11. When she was a member if the 9/11 Connission she killed any mention of that memo; the Commission, however, re-established the cooperartion between the FBI and the CIA. Then she became executive with the Fannie May which she ran into the ground while giving houses to "underserved minorities". Just before Fannie May went into bankruptcy she collected the "performance" bonuses amounting to $24,700,000 - that is 24 million dollars plus! You talk about high crimes and treason! Those AIG executives did not leave us defenselees from the Islamo-fascist terrorists.
Marc Jeric, Las Vegas
Mike| 3.23.09 @ 9:44AM
Obama lied and liberty has died!! We need more Tea Paties to point out the Socialist movement Obama is foisting upon America!!
Robert Rosencrans| 3.23.09 @ 10:19AM
This article should be read on the floor of the House and Senate.
Trotter| 3.23.09 @ 10:40AM
With each passing day, the Barry O administration continues to prove just how compotent its incompotence is. And, as more information surfaces on the details of the bailouts, it will also prove that it has put together the largest collection of liars, cheats and frauds ever assembled in the WH.
Pingback| 3.23.09 @ 10:51AM
There’s More Room For Rahm In AIG Bonus Abomination « Peace and Freedom Global Future links to this page. Here’s an excerpt:
Rocco| 3.23.09 @ 1:12PM
Luonne, you are correct to make that point. No matter what the Republicans do that is constructive will be covered by Obama's press office, aka, the MSM. That's why I wrote "seem" rather than "are." But there are avenues for them to get their point across. CNN, PMSNBC and other such are so predictable in their coverage I quit bothering with them YEARS ago.
Cheers!
Dina| 3.23.09 @ 1:14PM
And Peter Orszag spends his time yucking it up with the liberal press on JournoLIST. Awesome!
Pingback| 3.23.09 @ 1:25PM
Did Rahm Know? "Right now, you get the feeling this is all about protecting [White Ho links to this page. Here’s an excerpt:
Commerce| 3.23.09 @ 2:54PM
The dems are drunk with power. Bambie outsourced all decisions and policy de jour to this handlers and Pelosi, et al. He has Zero understanding of the (free market) economy and affairs of State (and put Ma Hillary in there just to buy her off; she's equally unqualified). All decisions are made by others and then displayed to his teleprompter. "Empty suit" is being generous.
Our current troubles will surely get much worse. with Obama's juvenile and ego-driven mentality and self-serving assumptions.
As said above, we have the well documented Chicago political criminals running the WH.
For Obama and his clan, it's all about money and power. As our economy fails, all look to the Govt., for leadership. It is not there, nor will it ever be while this fraud is in office.
"Hope is a great falsifier of the truth."
Pingback| 3.23.09 @ 3:15PM
Commentary » Blog Archive » The Blame Game links to this page. Here’s an excerpt:
Karen| 3.23.09 @ 3:18PM
It doesn't matter who knew or did what ......NOBODY will be held accountable .... incredibly they just keep blaming Bush. The liberal loons on the net have already been brainwashed with that message. You should see the comments everywhere on this issue.
TrustNot| 3.23.09 @ 3:33PM
It's just pattern and practice for Ronnie the crook.
Nov., 2008
Emanuel tied to Freddie Mac collapse; Update: The numbers for Emanuel
posted at 11:30 am on November 7, 2008 by Ed Morrissey
During the campaign, Barack Obama had to fight off assertions that Freddie Mac and Fannie Mae had him in their pocket while the two GSEs committed fraud and declined to their collapse. Obama didn’t help that perception when he chose Jim Johnson, Fannie Mae’s former CEO and chair, as the leader of his VP search committee, a position Johnson resigned shortly afterwards. Now ABC reports that Obama’s new chief of staff, Rahm Emanuel, sat on the board of Freddie Mac during the critical period:
President-elect Barack Obama’s newly appointed chief of staff, Rahm Emanuel, served on the board of directors of the federal mortgage firm Freddie Mac at a time when scandal was brewing at the troubled agency and the board failed to spot “red flags,” according to government reports reviewed by ABCNews.com.
According to a complaint later filed by the Securities and Exchange Commission, Freddie Mac, known formally as the Federal Home Loan Mortgage Corporation, misreported profits by billions of dollars in order to deceive investors between the years 2000 and 2002.
Emanuel was not named in the SEC complaint but the entire board was later accused by the Office of Federal Housing Enterprise Oversight (OFHEO) of having “failed in its duty to follow up on matters brought to its attention.”
Emanuel’s action, or lack of it, came during a time when the SEC says Freddie Mac misrepresented its income to investors in order to maintain its price. In other words, they committed fraud. The SEC specifically notes that Freddie did this in 2000, 2001, and 2002, and Emanuel sat on the board in 2000-2001.
This is no small matter. Had this happened when Sarbanes-Oxley was in effect, Emanuel would have had to sign off on those numbers under penalty of perjury. He could be liable for criminal prosecution. As it is, his actions and omissions as a board member may still result in civil and criminal liability, if the SEC discovers that he had a hand in the fraud committed at Freddie Mac, or if Emanuel knew about it and failed to act to stop it.
For an incoming administration that ran on cleaning up the greed on Wall Street, the selection of Emanuel speaks a lot louder than any campaign promises. One might think that anyone who sat on the boards of Fannie Mae and Freddie Mac while the two GSEs cooked the books and set the stage for global financial collapse should at least be considered political poison for any appointment, let alone one as significant as White House Chief of Staff — if nothing else, then at least on the basis of competence. Instead, it looks like Obama is bringing the Chicago Way to Pennsylvania Avenue.
Osamas Pajamas | 3.23.09 @ 4:17PM
Well, the Republicans certainly are a grass-roots bottom-up party, as all the legit criticisms of OhBummerism are coming from the rank-&-file, becuz.....there is no leadership. I'm not talking about sticking a wuss at the top of the pile, I mean to say that a Reagan or a Goldwater or a Thatcher would do very nicely.
Gary| 3.23.09 @ 4:27PM
People keep saying how incompetent this administration is, and how ignorant they are. I don't buy that for a minute. They know exactly what they are doing and have been very successful at it so far. They just need to be stopped before their ultimate goal is accomplished.
Bill Hussein O'Stalin| 3.23.09 @ 5:43PM
As an avowed Communist I chuckle at chuckleheads and I do a lot of chuckling these days.
Here's a study that indicates that since 1980, massive government spending has benefited the wealthy, not the poor, and all political motivations are simply to fleece the sheeple, and continue the party in their honor.
http://www.lewrockwell.com/alston/alston52.html
Up until about 1980, the growth in real wages across economic classes seemed relatively uniform, that is, enjoyed by everyone. Thereafter, one can see that the growth in wages is skewed toward the upper income levels. In my view, this skewing exemplifies the transfer of wealth driven by inflation (and increased national debt) and to whom that money flows. That transfer continues today. My suspicion: The State, via the Federal Reserve, is the facilitator of that transfer. (I’m not alone in my suspicion, as a recent LRC podcast seems to indicate.) It strikes me as curiously ironic that the Monetary Control Act, which gave the Fed much broader powers, including the power to "monetize" sub-prime mortgages, was passed in 1980. Again, while I am certainly no economist and therefore cannot draw a firm conclusion, my suspicions are strong.
Either way the result is rather obvious. That result is the widening gap between the proverbial ends of the income spectrum that seemed to accelerate beginning around 1980. According to a well-researched and fascinating presentation on the economy by Chris Martenson, entitled, "The Crash Course," the Greek philosopher Plutarch stated, "An imbalance between rich and poor is the oldest and most fatal ailment of all republics." That this imbalance seems to be ever widening in the current U.S. society should be, in my view, cause for concern, no matter the amount of debt. This is not because it is inherently bad for some to be more proficient at making money than others. Differences in performance are both normal and expected. However, when the State facilitates that difference well, "Houston, we have a problem!" (FYI, Jim Davies has a wonderful essay that explains some of the caveats of the Crash Course, one of which is its Malthusian point-of-view. Davies’ essay very worthwhile; nearing required reading in my view.)
Make no mistake; the production of fiat money by a central banking scheme drives much of this widening gap between the ends of the socio-economic food chain. Libertarian philosopher and Austrian economist Roderick Long explains:
When the central bank creates money, the new money doesn’t propagate throughout the economy instantaneously; some sectors get the new money first, while they’re still facing the old, lower prices, while other sectors get the new money last, after they’ve already begun facing the higher prices. The result of such "Cantillon effects" is not only a systematic redistribution of wealth from those less to those more favoured by the banking-government complex, but an artificial stimulation of certain sectors of the economy, making them look more inherently profitable than they are and so directing economically unjustified levels of investment toward them.
Frosty| 3.23.09 @ 6:24PM
Obama's administration is corrupt AND incompetent: They just don't care. Why should they, when the media watchdog is dead?
MAS1916 | 3.23.09 @ 6:53PM
Commissar in Chief Emanuel is the one calling the shots. Just as in Stalin's day, you don't cross the Commissar or make him look bad. Even Dodd cowers before him.
Jeremiah| 3.23.09 @ 7:27PM
This is the dumbest non-issue I ever saw.
Anyone notice how today's market is responding to the White House's recovery plans?
Didn't think so. All you who've been saying "the market goes down every time Obama opens his mouth" are going to be wiping egg off your face very soon.
ts| 3.23.09 @ 10:30PM
The dumbest non-issue is the fact that the previous poster who has been posting here trying to get a rise out of conservative like-minded people isn't working. We are a group of people who believe Liberty, Freedom, and the Pursuit of Happiness in our short lives here is all that matters.. I for one, only care about watching a beautiful sunrise... or, sunset... without worrying about how the people in power are destroying the ability of our children to make an honest living in this country that I love.. The liberals can preach all they want about equality, we are destroying the planet, etc... but, at the end of the day...What will they take with them...? The glorious appreciation that they destroyed our way of life because of fairness and equality for all? This old earth has survived volcanic eruptions that were more severe than anything we could ever do...! When was the last time you saw a poor homeless man give 10 people a job to assemble widgets...? There is the key... Punish by taxation the people who have the wherewithall to create jobs and make a profit, and you destroy the American dream for everyone. Government has NEVER created or sustained any job, other than working for itself. It is really simple.. I find it amazing that so many people in our country now choose to look to government to create jobs and solve problems? What happens when there are no jobs left to pay the taxes that fund those government workers?? ! If you do not produce something or add value to something it a a negative drain on the economy...Extremely Simple!!.. Government has never done anything in it's history to promote, or further the tenets placed forth in the Constitution or Bill of Rights ... Everything they ever attempt is an utter failure... Because, NO ONE IN ELECTED OFFICE IS ACCOUNTABLE.....! Amazing to me...! Yes, I know, accountable at the ballot box..? How is it that Ted Kennedy, John Kerry, and others are still elected to office? Are the people that live in those states braindead? This is absolutely something I cannot understand...I, for one, am ready to die for the country I believe in..It saddens me to think that there aren't enough people who believe in this country enough to die for it. Our Armed Forces are the shining example of duty. I would love to be able to be at their side defending our freedom. I fear that the only way we can ever fix our country is through force. I will be the first in line! At the end of our lives all we have is the absolute TRUTH ...We all WILL ANSWER to our Creator...! God Bless All of you who care for our country and protect it...!
Signed, A fed up Patriot...!
Oh yeah, Rahm Emanuel is an absolute low-life Chicago politician who trained under Bill Clinton... very scary now that he is pulling Obama's strings...!
Yes, I noticed the market moved into positive territory today. But, watch your portfolio.. or do what the rich guys do... short all the blue chips.. the dollar is tanking.. it will be worthless in 2 years... just my 2 cents..
kathrynf| 3.23.09 @ 10:49PM
Rahm Emmanuel is to Barack Obama what Howard K. Stern was to Anna-Nicole Smith. Blind ambition meets pathological narcissism. Another human tragedy in the making.
JHarp| 3.23.09 @ 10:52PM
Unfortunately for us, a national tragedy in the making.
Pingback| 3.23.09 @ 11:48PM
Daily Pundit » Who Was That Masked (E)Man(uel)? links to this page. Here’s an excerpt:
Leslie Jo| 3.24.09 @ 12:29AM
What about the separation of powers? Congress is supposed to be WRITING the bills and the Executive Branch signs them or vetoes them. The Executive Branch and Legislative Branch are separate. Read the Constitution, Barry!!!
marial| 3.24.09 @ 12:44AM
If you bothered to do your homework, you would know that 1) Geithner is on record saying it was someone at the Treasury Dept. who delivered the message to Dodd, and 2) both the Wall Street Journal and New York Times had articles back in early February stating Emanuel and Axelrod wanted to crack down on the bonuses, while Geithner and Summers wanted to leave them as is, and Obama went with the Geithner-Summers plan. Who delivered the message may be unknown, but where it came from is pretty clear.
Pingback| 3.24.09 @ 1:16AM
Blogs For Victory » Blog Archive » Rahm Emanuel and AIG links to this page. Here’s an excerpt:
Pingback| 3.24.09 @ 1:20AM
popurls.com // popular today links to this page. Here’s an excerpt:
Pingback| 3.24.09 @ 2:28AM
Belmont Club » Widening gyre links to this page. Here’s an excerpt:
Pingback| 3.24.09 @ 4:32AM
Belmont Club » Loss of lift links to this page. Here’s an excerpt:
Pingback| 3.24.09 @ 7:03AM
Plenty of Rahm at the AIG Table - Southern Maryland Community Forums links to this page. Here’s an excerpt:
John Davis| 3.24.09 @ 7:13AM
Wow, thats some really cool stuff dude!
RT
www.online-privacy.pro.tc
Alexx | 3.24.09 @ 12:37PM
What about the separation of powers? Congress is supposed to be WRITING the bills and the Executive Branch signs them or vetoes them. The Executive Branch and Legislative Branch are separate. Read the Constitution, Barry!!!!
B H O | 3.24.09 @ 5:54PM
PLEASE WATCH
http://www.youtube.com/watch?v=eAaQNACwaLw
THIS IS ACTUALLY HAPPENING
Pingback| 3.24.09 @ 6:46PM
Handpicked Headlines (03-24-09) :: Daily Uprising links to this page. Here’s an excerpt:
paul| 3.24.09 @ 6:48PM
It is about time we started to call a spade a spade,we have a "commie " in the white house!
Pingback| 3.24.09 @ 7:00PM
Aaron's (Mostly) Business Blog: Plenty of Rahm at the AIG Table links to this page. Here’s an excerpt:
kathrynf| 3.24.09 @ 10:36PM
to pingback: "Some can see at a glance what others cannot see with a search light and a telescope."
AirForce71| 3.25.09 @ 12:57AM
Today Obama did not use is teleprompter but changed to a large screen monitor positioned behind the press (see FreeRepublic.com for pics).
Regardless, Obama is, and will always be a fraud. But "...don't take my word for it...." This fact is well known, even with his phony friends, the Clintons (just replay Hillary's campaign statements) .
Fact: Obama & His Tribe, LLP, are knockoff political Chicago crooks who are laughing their way to the bank (this is well known and doc'ed).
Obama & Co., have one supreme objective - INCREASE POWER - in all aspects of your life (more power = more money for them). And 'they' will try to obtain this additional power by any means. For example, OB's fraud cartel created the massive FALSE outrage re AIG bonus pay. As most know, the dems, OB personally and his functionaries, reviewed, redrafted and them passed the AIG "bailout" into law -with the bonus provisions carefully crafted. They just thought you wouldn't notice (or care). The TRUTH WILL COME OUT.
Obama's Cartel will exploit and manipulate all; everyone possible and especially those inclined to fall into his hate-driven class warfare mindset. This is Obama's stock and trade.
Mr. President, if possible - at least try to be HONEST - then recompute your "proposed " leadership.
Liberty Lad| 3.25.09 @ 12:58PM
Tired of elephants & asses?
Vote libertarian!
Chris| 3.25.09 @ 3:44PM
Why hasn't any media outlet asked Obama these question?
1. Did you know about the AIG bonuses before they were handed out?
2. If not, how could you sign your stimulas bill with such "loopholes" in it and how many more "loopholes" are there? Has anyone read the whole thing?
3. If so, why would you fuel this public anger over them when it was you that signed them in law?
This hypocrocy is insane! I live in Alb,NM and have yet to meet a true Obama supporter. Yet the media proclaims his high approval ratings without giving any number. When will end?
Pingback| 3.26.09 @ 8:03AM
Rolling Stone: “The Big Takeover” — AIG Bailout as Political Revolution by Wall Stree links to this page. Here’s an excerpt:
Pingback| 3.26.09 @ 10:45AM
TheTraderBlog.com » Links 3/26 links to this page. Here’s an excerpt:
Virginia Freeman| 3.26.09 @ 2:33PM
I have been warning people for months - even before Obama was elected - that he would ruin the United States. He is a Socialist and more. Someone in the Republican Party or the more conservative Democrats need to find some "balls" and stop this madness. It breaks my heart to see what is happening or could happen to the U.S. For those of us nearing retirement, we are so scared that we will never recover the losses we have experienced in our retirement money. It makes me sad that somehow Obama was able to fool so many people and now we all have to suffer the consequences. The administration DOES NOT CARE about anyone but themselves. They are so corrupt that I don't think we know half of what is going on. With James Carvill, Rahm Emmanuel and others calling the shots, we should all shudder. Someone help!
Angel| 3.26.09 @ 3:01PM
Virginia, you and I are the help you're seeking. We're gonna have to grow a pair, girl. Massive tea-party in D.C., July 4, 2009!
Pingback| 3.28.09 @ 9:22AM
A Primer on Crapweasels, Punks and Parasites [Dan Collins] links to this page. Here’s an excerpt:
Pingback| 8.28.09 @ 2:47PM
Twitter Trackbacks for The American Spectator : Plenty of Rahm at the AIG Table [spe links to this page. Here’s an excerpt:
Pengamat | 1.12.10 @ 11:49AM
big conspiracies in a big corporate... Let's Think Out of The Box|Astaga.com Portal Lifestyle On The Net