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Tim Geithner Will Have To Ooze Out When He Goes

27 Jan

Remember a couple of years back when we were told that there would be
a $500k cap on pay packs for execs of companies that took massive
amounts of taxpayer provided bailout dollars?  Did you really believe
that there was going to be a $500k cap for execs of companies that took
massive amounts of taxpayer provided bailout dollars?  Well, if you did,
here’s your sign.

According to Juan Gonzales @ the New York Daily News, what
actually happened was exactly what anyone with half a brain should have
known would happen and the Headline says it all… or a lot of it
anyway.

Treasury Department approves huge paydays for execs at firms who received TARP bailout money.

Come on, really… is there anyone who didn’t see that coming?
 If you didn’t, then you’re a major part of the flipping problem in this
country and those of us with enough sense to know when our ass is on
fire would be better off if you just went ahead and moved to the
Confederate States of Retardia and let the Newt run your lives while we
get on with trying to put out the damned fire.

Time Geithner is simply a worm, a Wall Street tool and a card
carrying member of the one percent and I would bet anything the sucker
has never voted Democrat in his life.  Can I get an “amen” on that?
 Good, thank you.  Moving on to the actual numbers:

The Treasury Department approved pay packages
worth $5 million or more for 49 executives at a handful of firms that
received the biggest taxpayer bailouts between 2009 and 2011.
A scathing new audit this week by the inspector general for the
Troubled Asset Relief Program blasted those payments, all of which
occurred despite a $500,000 salary cap that President Obama and Congress
established in 2009 at firms receiving “exceptional assistance” under
TARP.

Treasury Department and Federal Reserve Bank of New York
officials joined behind the scenes with the bailed-out firms to
repeatedly pressure Kenneth Feinberg, the special federal master
overseeing the compensation packages, to approve higher salaries, the
audit found.

You can read Timmy’s bio if you don’t see the significance there.
 He came to Treasury from… three guesses and the first two don’t
count… the Federal Reserve Bank of New York.  And I have no doubt that
when he leaves… and I’m hearing now that he’s leaving next year, no
matter who wins… that it will only because he’s sucked up every easy
dollar he can reasonably expect to get for the people who actually
retain his allegiance and that ain’t you and me.

Feinberg had the power to allow waivers to the cash
cap, but the report found the program’s contradictory goals meant “he
could not effectively rein in excessive compensation.”
The CEO of one bailed-out firm, Ally Financial, actually complained
that one of his underlings, who was paying for private school for his
kids, would be “cash poor” if relegated to a salary of just $500,000.

The audit looked at seven of the biggest TARP recipients –
Citigroup, Bank of America, AIG, General Motors, Ally, Chrysler, and
Chrysler Financial.

Two of those, Citigroup and Bank of America, paid back their
government loans before the end of 2009, so they would be free to pay
their execs whatever they wanted.

Of the remaining companies, AIG repeatedly insisted on the
biggest pay packages and represented 80% of Feinberg’s “headaches,” the
audit said. The company received more than $180 billion in federal bailout money
in 2008, and even today, after paying back billions, it is still 70%
owned by the federal government.

But at the recession’s height in spring 2009, AIG had the
audacity to press Feinberg for raises ranging from 20% to 550% for its
top employees, the report said.  Backed by top Treasury aides, AIG argued that unless it got those raises, key people would leave and the government would not get its money back.

What’s more, AIG wanted those salaries in cash, not stock.

Company execs confided to Feinberg that the firm’s common stock was “essentially worthless,” the report said.

To his credit, Feinberg resisted the most outrageous salary
demands, but he still approved dozens above the government’s $500,000
cash cap.

In 2009, for instance, he approved a $10.5 million package for AIG
chief executive Robert Benmosch, which included $3 million in cash.

The following year, Feinberg approved another $10.5 million for
Benmosch, while signing off on packages of from $3 million to $7.6
million for 17 of AIG’s 22 top employees.

Ally CEO Michael Carpenter got approval for an $8.1 million
package. General Motors chief Fritz Henderson got $5.1 million.  AIG’s
Executive Vice President Michael Herr declined to comment Thursday.

As for those dire warnings that many execs would flee, it simply
didn’t happen.  The audit found that 85% of top employees covered by the
federal salary caps in 2009 were still working at the same company two
years later.

All that talk about limiting pay at companies the taxpayers bailed? It was just that – talk.

Well actually, a lot stronger words than “just talk” come to mind
but whatever.  Not only are these people never going to be prosecuted
for the crimes they’ve committed against this country and it’s people,
the bastards are being allowed to continue committing those crimes while
our government “watchdogs” stand in a corner shakin’ like a dog
shittin’ peach pits and allowing themselves to be… at best…
blackmailed or extorted into helping them and Tim Geithner is the bag
man for the Wall Street mob.

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Posted by on January 27, 2012 in Uncategorized

 

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