Tim Geithner, who will be testifying before congress over his role in the AIG disclosure coverup, confirms that nothing has changed in the administration, and that were he to have to bail out AIG's counterparties at par all over again, he would. It appears Timmy does not realize still that Goldman in fact ended up pocketing about 125 cents on the dollar courtesy of its AIG CDS which it sold at the peak of the crisis to counterparties that may or may not have had the same level of insight into the government's desire to bail out the firm (which Paulson previously said was to be liquidated) as Goldman.
From Giethner's earlier interview on CNBC:
[A]t a centerpiece of the president's reform proposals is to give the government the tools to unwind, dismember, break up, sell these institutions without the taxpayer being put in the position of having to absorb their losses. That's one of the most important reasons why we have to get reform in place. We had no choice at the time other than to do this. And I'm, personally, very confident it was the right thing to do, and we did it in the best way possible for the American people.
Yet isn't it ironic that majority of these vary same American people have been calling for your resignation for months now Mr. Geithner? Not that that popular opinion would make any difference:
Harwood: Have you ever considered, in response to these calls, resigning your job?
Geithner: Oh, well, that's the judgment the president has to make. As long as I have the chance to help him do this, fix these problems, I'll be honored to do it.
Yes Tim, you better get on with fixing stuff. In other news, none of the proposed reform packages by Frank or any other clowns in D.C. comes anywhere close to providing a resolution authority that would make a comparable dismemberment of AIG now any different to that in 2008. We are no better/worse off than we were just after the crisis started.