Geithner’s Bonus Plan as Perplexing as His Other Proposals
Posted on Mar 17, 2009
Treasury Secretary Timothy Geithner has sent Congress an explanation of his plan to deal with the AIG bonus fiasco. Essentially, Treasury will dock the $165 million in bonuses from AIG’s next bailout payment. Here’s a question: If AIG can do without that $165 million, why were we giving it to the company in the first place?
Isn’t the whole idea that this company is too big to fail and we have to hand over our hard-borrowed funny money or the world will implode?
In a letter to congressmen, Timothy Geithner said $165m (£116m) would be taken from $30bn the firm is due to get as part of its government bail-out.
The plan comes after Mr Geithner faced heavy criticism for his handling of the increasingly controversial issue.
Geithner image from Presidencia de la Nación Argentina