Wednesday
Jan272010
Geithner Takes Heat, Defends AIG Bailout
Wednesday, January 27, 2010 at 1:06PM
By Monique Cala and Sofia Sanchez - University of New Mexico/Talk Radio News Service
U.S. Treasury Secretary Timothy Geithner felt the heat Wednesday while defending the government's $85 billion bailout of Americas Investment Group (AIG).
"Action was required. The world was watching, and the government did not have the luxury of time," he said.
During his prepared testimony, Geithner denied criticisms that the bailout was authorized to benefit Wall Street, arguing rather that it designed with only the bests interests of the American public in mind.
"Thousands of more factories would have closed their doors, millions of more Americans would have lost their jobs, the value of Americans' houses and savings would have fallen even further than they did at that time," said Geithner. "People would have rushed to take their money out of banks. It would have brought about utter collapse."
Geithner also denied any involvement in deciding what to disclose to the public regarding payments to bankrupt counterparties.
During Wednesday's hearing, Members of the House Oversight and Government Reform Committee presented Geithner with potentially incriminating e-mails, including one that read, "There were too many people involved in the deals- too many counterparties, too many lawyers and advisors, too many people from AIG to keep a determined Congress from information."
Shortly thereafter, John Mica (R-Fla.) told Geithner that he should resign from his role as Treasury Secretary. Geithner reassured his commitment to the President and to "repairing the damaged economy."
"You don't know me very well," said Geithner. "I was there, I know what I am responsible for. I take great pride in those judgements. People are entitled to their opinion."
U.S. Treasury Secretary Timothy Geithner felt the heat Wednesday while defending the government's $85 billion bailout of Americas Investment Group (AIG).
"Action was required. The world was watching, and the government did not have the luxury of time," he said.
During his prepared testimony, Geithner denied criticisms that the bailout was authorized to benefit Wall Street, arguing rather that it designed with only the bests interests of the American public in mind.
"Thousands of more factories would have closed their doors, millions of more Americans would have lost their jobs, the value of Americans' houses and savings would have fallen even further than they did at that time," said Geithner. "People would have rushed to take their money out of banks. It would have brought about utter collapse."
Geithner also denied any involvement in deciding what to disclose to the public regarding payments to bankrupt counterparties.
During Wednesday's hearing, Members of the House Oversight and Government Reform Committee presented Geithner with potentially incriminating e-mails, including one that read, "There were too many people involved in the deals- too many counterparties, too many lawyers and advisors, too many people from AIG to keep a determined Congress from information."
Shortly thereafter, John Mica (R-Fla.) told Geithner that he should resign from his role as Treasury Secretary. Geithner reassured his commitment to the President and to "repairing the damaged economy."
"You don't know me very well," said Geithner. "I was there, I know what I am responsible for. I take great pride in those judgements. People are entitled to their opinion."
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