Geithner Tells Goldman To Cut Bonuses, Says All Banks Would Have Failed
Even Timmy is slowly realizing that the Administration will need to find a way to deflect Main Steet's anger at Goldman and keep it focused exclusively on Wall Street instead of equating it with Obama et al. The problem is - you make some very serious, tentacled enemies in the process. Geithner also flip flops on his prior position on the transaction tax. While before he was more opposed to the transaction tax than even Marla, his new "windsocked" position on the topic may now provide a challenge even to Nitric Oxide inhibitors.
But here is the clincher for the horse head of the year award:
Q: Did Goldman Sachs need federal aid 14 months ago?
A: The entire US financial system, and all the major firms in the country, and even small banks across the country, were at that moment in the middle of a classic run. I think the system was at risk and none of the big institutions would have survived a situation in which we let that fire burn itself out.
And on record year end bonuses:
A. We have to end that era of irresponsibly high bonuses. Executives were paid for taking imprudent risks. It is very important we change the way these executives are paid, the form of compensation, this year.
And with that, Timmy can proceed to consider options outside of the public sector (but not at Goldman Sachs.)