And they don’t intend to let the AIG crisis pass without using it to justify expanding the powers of the federal government.
“Our system failed in fundamental ways. To address this will require comprehensive reform. Not modest repairs at the margin, but new rules of the game.”
So said Treasury Secretary Timothy Geithner before the House Financial Services Committee.
“The days of light-touch regulation are over,” said Representative Barney Frank of Massachusetts, chairman of the House Financial Services Committee.
Mr. Frank said the financial and economic catastrophes of the last 18 months had created a new political consensus in favor of tighter financial supervision. Mr. Frank said he hoped to pass a bill “very soon” to give the federal government “resolution authority” to seize control, restructure and shut down troubled financial institutions.
The public has been worked up into a frenzied outrage over the AIG retention bonuses, resulting in protests and death threats, and is waiting for the government to remedy the injustice.
What a perfect opportunity to expand government’s power.
Even President Obama has expressed outrage over the AIG bonuses.
As it turns out, it was the Obama administration itself that requested language in an amendment that would allow for these bonuses to be paid after the company received a government bailout.
But we don’t know who knew what, and Treasury Secretary Geithner has already been caught lying about the matter to Congress.
Then we find out that some of the people getting these bonuses – people who were not involved with the credit default swaps that caused the crisis at AIG – have been putting in 14 hour days for no pay, despite other offers from more stable companies, with the understanding that these bonuses would come.
Don’t expect the mob to care. It’s time to hate the rich. They deserve whatever happens to them. They are greedy and responsible for all of your problems.
We’re in the middle of a crisis!
And you can be sure that your government will not waste it.