New Powers for Geithner - Seizure of Companies | WHAT REALLY HAPPENED

New Powers for Geithner - Seizure of Companies

The Obama administration will ask Congress to give the Treasury secretary unprecedented powers to initiate the seizure of non-bank financial companies, such as large insurers, investment firms and hedge funds, whose collapse would damage the broader economy, White House spokesman Robert Gibbs said this morning.

Treasury Secretary Timothy F. Geithner is set to argue for the new powers at a hearing today on Capitol Hill that was scheduled to address the furor over bonuses paid to executives at American International Group, which the government has propped up with about $180 billion in federal aid. Administration officials say the proposed authority would have allowed them to seize AIG last fall and wind down its operations at less cost to taxpayers.

Webmaster's Commentary: 

Why is it the responsibility of the US Government to save AIG's counterparties form their own poor choices?

Why is it the responsibility of the US taxpayer to pick up the tab?

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