Archive for the ‘Shelby’ Category

Shelby: Geithner Needs “180 Degree Change” To Stay At Treasury

March 22, 2009

“We are on a fast road to financial destruction,” Senator Richard Shelby (R-AL) said today.

Shelby, speaking on “Fox News Sunday,” said Mr. Obama was going to have to scale back his budget in light of the new estimates: “He’s going to have to. We’re on a — on the fast road to financial destruction, and I see a 20 billion — a $20 trillion deficit in the few years to come,” he said.


The top Republican on the Senate banking panel says he doesn’t think the treasury secretary can survive in his job without a 180-degree turnaround.

Treasury Secretary Timothy Geithner is on “shaky grounds” these days with Congress and many in the country, according to the Senate Banking Committee’s top Republican.

Sen. Richard Shelby said Sunday he doesn’t think Geithner will last long unless he starts doing a better job.

Shelby, who voted to confirm Geithner, said he has less confidence in the treasury secretary each day — over the AIG bonus mess, solving the nation’s financial troubles and helping turn around the economy.

“I said competence brings confidence to anything. I don’t see a lot of things positively thus far that Timothy Geithner’s been involved in,” Shelby said Sunday on “Fox News Sunday.”

“He’s going to have to do a 180-degree turnaround, I believe, to be a successful treasury secretary,” he said.

But President Barack Obama has faith in Geithner. The president tells CBS’ “60 Minutes” that if Geithner offered to resign, the answer would be, “Sorry buddy, you’ve still got the job.”

While Shelby did not specifically call for Geithner to resign, at least two Republicans — Reps. Connie Mack of Florida and Darrell Issa of California — did.

White House economic adviser Christina Romer said those calls are “silly.”

“I think all of this discussion is — is really silly. Tim Geithner is an excellent secretary of the treasury. He has been dealt an unbelievably difficult hand to deal with. But he’s actually doing a fantastic job,” Romer said on “FOX News Sunday.”

From Fox News

Related from the New York Times:

In AIG flap, it’s not just about bonuses anymore

March 19, 2009
Scrutiny of bailout terms expands as critics question federal officials’ longtime ties to aid recipients.
By Tom Hamburger and Janet Hook
The Los Angeles Times
March 19, 2009
Reporting from Washington — The firestorm over American International Group is spreading beyond executive bonuses, with lawmakers and policy experts now questioning virtually all aspects of the taxpayer-financed rescue package for the insurance giant.

Among other issues, critics are asking why AIG was allowed to use federal bailout money to repay $13 billion in debt obligations to Wall Street powerhouse Goldman Sachs, as well as debts to foreign banks.

Prominent Republicans, joined by some Democrats, suggested that the answer could be found in longtime ties linking Washington to Wall Street.

Former Treasury Secretary Henry M. Paulson was once chief executive of Goldman Sachs, for example, while AIG’s chief executive, Edward M. Liddy, was a member of Goldman’s board. The Treasury official who is in charge of the bailout, Neel Kashkari, is a former Goldman executive.

“Look at where the money went: Goldman Sachs, Paulson’s firm, foreign banks,” Sen. Jim Webb (D-Va.) said Wednesday. “AIG gave more money to foreign banks than we gave in loans to the auto industry.”

“The real outrage over the AIG bailout isn’t executive bonuses, it’s that billions in taxpayer funds intended for AIG have been passed through to benefit foreign banks and Wall Street behemoths like Goldman Sachs,” former House Speaker Newt Gingrich wrote in an e-mail letter to conservatives Wednesday morning.

Gingrich and Republicans on Capitol Hill unleashed their anger on the current Treasury Secretary, Timothy F. Geithner, saying he bore responsibility for being overly generous in providing aid to failed companies like AIG.

Two outspoken House Republicans — Darrell Issa of California and Connie Mack of Florida — called for Geithner’s resignation, saying the AIG bonus controversy on top of existing doubts about the bailout made such a move necessary.

Other Republicans, including the ranking member of the Senate Banking Committee, Alabama’s Richard C. Shelby, offered caustic criticism of Geithner but stopped short of calling for his resignation.

Read the rest:

Obama White House Issues “Lamest” Confidence Statement Ever for Geithner

March 17, 2009

  President Barack Obama has “complete confidence” in Treasury Secretary Timothy Geithner, and any suggestion he bungled over the AIG bonuses storm is “unfair” the White House said Tuesday.

That according to AFP.A twenty eight word article.

My years in government tell me this: Geithner: pack your desk.

House Minority Whip Eric Cantor (R-VA) said the administration is in “disarray.” 

Democratic Senator Chuck Schumer wants the AIG bonus money back.

“My colleagues and I are sending a letter to [AIG CEO Edward] Liddy informing him that he can go right ahead and tell the employees that are scheduled to get bonuses that they should voluntarily return them,” Sen. Charles Schumer said on the Senate floor. “Because if they don’t, we plan to tax virtually all of [the money] … so it is returned to its rightful owners, the taxpayers.”

We have been told that “a big hunk” of the bonus money was paid by AIG to people that are not Americans and not subject to U.S. tax law….

Sen. Sherrod Brown, D- Ohio, pauses in the elevator after arriving on Capitol

Obama, Geithner Ties Go Way Back? People Are Talking….

AIG Bonus Flap: Lawsuit to Get Back $165 M Could Cost $300 M or More

Obama Dead Wrong On Stimulus, Caterpillar Company Jobs, Recovery

Amid AIG Furor, Dodd Tries to Undo Bonus Protections He and Geithner Put In

Fox News:



By PHILLIP ELLIOT, Associated Press Writer

The top Republican on the Senate Banking Committee is questioning whether Treasury Secretary Timothy Geithner responded appropriately to American Insurance Group’s payment of millions in executive bonuses.

Sen. Richard Shelby says that $165 million in bonuses have already been paid out by AIG and asks, “Will we ever get the money back.”

The Alabama Republican, interviewed Tuesday on CBS’s “The Early Show,” stopped short of calling for Geithner’s resignation. But he did say: “What I want to ask, where was the secretary of the Treasury? Where was Treasury before this money was paid out? Why did not Treasury step in and let the American people know, just try to block it.”

Read the rest:

 Obama: Fire Geithner

Dodd Allowed AIG To Thrive in His State, Approved Bonuses: Now Throws Them Under The Bus

March 17, 2009

This is now a major Democratic integrity issue:  Chris Dodd allowed AIG to rake in billions of dollars in his home state, allowed the bonuses now so famous, and he is saying he’ll work his tail off for the Citizens of America to recoup every dollar.


He doesn’t have the stones to tell the President: “We screwed up, Mister President.  Better we  own up to the American people.”

And neither does Tim Geithner.  He knew about the AIG bonuses, and he allowed the president to go on a rant yesterday.  Geithner knew about AIG’s bonuses, he allowed them, and he allowed the president to grandstand yesterday in a self-righteous speech about “outrage.”

Or faux outrage.

Inside the Piñata At AIG: Death Threats and Disappointment in Elected Leaders

 Obama, Congress, Treasury, Fed: Shameful Mismanagement of Your Money, Recovery

“Dodd The Dodge” — Senator Weasels Away The Truth; And Not Artfully

The president knew abut the AIG bonus money last week and faked the big outrage event yesterday.

AIG Bonus Money Is Not The Problem: Government Is The Problem
Obama’s AIG Outrage: All Talk, No Action

And most of the mainstream media has swallowed this BS — like CNN.  That’s a real outrage.

What is outrageous here is Obama, Geithner, Obama and Dodd.  And most of the media which is silent and “outraged.”

Few know more about the bailout of AIG than Senator Chistopher Dodd (D-Conn), chairman of the Committee on Banking, Housing and Urban Affairs.

Senate staffers tell us he allowed the AIG contracts that provide the bonus money now at issue — and now he has joined the fight to get that same money back.

Dodd suggested a tax provision to recoup the bonuses — which he should have never allowed.

Much of the bonus money will be paid to AIG people who are not American citizens and work overseas — so the horse has already left the barn in many respects….

Dodd allowed AIG to prosper in his home state and now he has thrown them under the bus.

The Washington Post said today that hired guards stood watch outside the suburban Connecticut offices of AIG Financial Products, the division whose exotic derivatives brought the insurance giant to the brink of collapse last year.

Senator Richard Shelby is saying Treasury Secretary Geithner also knew about the bonuses and allowed them to be paid….

John E. Carey
Wakefield Chapel, Virginia

Senate Banking Committee Chairman Sen. Christopher Dodd, D-Conn., ... 
Senate Banking Committee Chairman Sen. Christopher Dodd, D-Conn., left, and the committee’s ranking Republican Sen. Richard Shelby, R-Ala., listen during a hearing on modernizing insurance regulations, Tuesday, March 17, 2009, on Capitol Hill in Washington.(AP Photo/Susan Walsh)

 Obama: Fire Geithner

Washington Post:


Sen. Chris Dodd said the government could apply a tax to the AIG bonuses.

Stimulus will lead to ‘disaster,’ Republican warns

February 9, 2009

Well, it sorta had to happen after President Barack Obama called the lack of his stimulus bill and the resultant cataclysm a “catastrophe.” 

Now a Republican Senator, Richard Shelby, Republican of Alabama, told CNN’s “State of the Union” that the stimulus and efforts to shore up the struggling banking system will put the United States on “a road to financial disaster.”

Hoisted on his own petard?

Speaking of the stimulus and the huge debt now anticipated for the United States, Shelby says we’ll be on “a road to financial disaster.”

“Everybody on the street in America understands that.  This is not the right road to go. We’ll pay dearly.”

Shelby is the ranking Republican on the Senate Banking Committee.

Senate Banking Committee Chairman Sen. Christopher Dodd, D-Conn., ... 
Senate Banking Committee Chairman Sen. Christopher Dodd, D-Conn., left, waves as he and the committee’s ranking Republican Sen. Richard Shelby, R-Ala., arrive on Capitol Hill in Washington, Thursday, Feb. 5, 2009, prior to the start of the committee’s hearing on the Troubled Asset Relief Program (TARP).(AP Photo/Susan Walsh)

Polls seem to shore up what Shelby said, with more than 50% of voters now against or unsure of the stimulus according to the Rasmussen Reports.

That’s why President Barack Obama is hitting the campaign trail today and tomorrow and has scheduled a prime time news conference tonight.  The president is working overtime in an effort to convince the American people that the stimulus, and the debt that goes with it, are needed and necessary.

Obama’s foes include the American people, who are largely against the stimulus, the Republicans who have a decades long commitment to fiscal responsibility and lower taxes, a flock of very bad spokesmen trying to peddle the presidents plan,  dozens of economists, Democratic leaders who have failed miserably to explain why this stimulus is so good and the Congressional Budget Office.

The CBO said, “CBO’s basic assumption is that, in the long run, each dollar of additional debt crowds out about a third of a dollar’s worth of private domestic capital.”

The CBO analysis was requested by Senator Chuck Grassley a Republican from Iowa.

Grassley was unable to deliver the facts on the Senate floor on Wednesday due to what one staffer called the “carnival atmosphere and overdrive speed” of the Senate during the stimulus debate.

Sunday morning talk shows featured talking heads on both sides of the stimulus issue.

“Those who presided over the last eight years — the eight years that brought us to the point where we inherit trillions of dollars of deficit, an economy that’s collapsing more rapidly than at any time in the last 50 years — don’t seem to me in a strong position to lecture about the lessons of history,” Obama economic advisor Larry Summers told ABC’s “This Week.

John McCain said, “We need to spend money on infrastructure and on other programs that will immediately put people to work. But this is not it.”

Sen. John McCain, R-Arizona, is last year’s GOP presidential nominee.

McCain appeared on the CBS program “Face the Nation.”

“We’re going to amass the largest debt in the history of this country, by any measurement, and we’re going to ask our kids and grandkids to pay for it,” McCain said.

But Shelby said we are doing the economic recovery effort backward.

“Until we straighten out our banking system, until there is trust in our banking system, until there’s investment there, this economy is going to continue to tank,” he said.

On the CBO:
 Stimulus Debt May Destroy U.S. Growth for 10 Years

Obama Economic Chief: House, Senate Stimulus Chasm Still Means Trouble

Stimulus? Senator Unleashes “Gay Insult” During Debate Tongue-Lashing

Obama, Dems Go To a Spa After Tough First Weeks But No Stimulus

 Senator Critical Of President for Not Leading on Stimulus; Calls Effort “Crazy,” Bill “Monstrosity”

Stimulus: Its All In His Hands; Spokesmen Fail To Explain

Stimulus: Democrats Exhibit Zero Convicing Arguments, Spokesmen