Just Quit, Geithner: GOP Rep.

(NEWSER) - Treasury chief Tim Geithner said today that he asked Chris Dodd to add a stimulus loophole allowing AIG to dole out bonuses. Geithner told CNN he felt he had no choice because the government would have been vulnerable to lawsuits if it tried to stop them. "But we also worked with (Dodd) to strengthen the overall framework, and his bill has this very important provision we're relying on now to go back and see if we can recoup payments that were made that there was no legal ability to block." More»

Another Republican congressman calls for him to resign

(NEWSER) - As criticism of Treasury Secretary Timothy Geithner mounts, he is scheduled to take his place on the hot seat next week, the Wall Street Journal reports. Geithner will appear before Barney Frank's House panel—the same one grilling AIG chief Edward Lilly today—Tuesday and Thursday. Two Republican congressmen, Connie Mack and Darrell Issa, want Geithner to resign, calling the bonus scandal the last straw. More»

(NEWSER) - All the hubbub around AIG and its bonuses is “a complete farce,” Larry Kudlow writes in the National Review. No one should be surprised that those in charge have “completely bungled” the situation. “The government shouldn’t run anything, because it cannot run anything,” Kudlow writes. And the Obama administration was “undoubtedly informed” about the bonuses months ago. More»

(NEWSER) - The AIG fury grows. The White House today found itself defending Treasury chief Tim Geithner's handling of the bonus mess as congressional anger rose. Under siege by reporters about why the Obama administration didn't act sooner, spokesman Robert Gibbs said the president retains full confidence in Geithner, the Los Angeles Times reports. Meanwhile, Chuck Schumer said at least nine senators were writing a letter to AIG chief Edward Liddy warning him to recover the money. More»

Treasury pick has been at the table all along

(NEWSER) - Markets surged yesterday when Barack Obama announced that Timothy Geithner would become treasury secretary as part of an all-star economic team. But Wall Street actually harbors some skepticism about Geithner, writes Andrew Sorkin in the New York Times. As chair of the New York Fed, Geithner was the point man during the critical days when Lehman Brothers collapsed, which many on Wall Street say exacerbated the crisis. More»