AIG bonus flap

What the fuck are we talking about here? $165 million? A flap over a mere $165 million in cash is bringing our executive and legislative branches of government to a halt while the people of the USofA are losing their jobs, homes and hope. What a shame that this AIG triviality has become issue one. A crying shame.

As I understand it the series of events goes something like this:
Last year the Bush Treasury Department and Federal Reserve, with the very active participation of Tim Geithner acted to prop up AIG with TARP money requested by Bush and approved by Congress. There were virtually no strings attached to this cash by Congress, the Fed or the Treasury at that time. The billions 'bailout' cash was paid out in exchange for a large stake in the company but with no specific directives on how that cash must be spent/invested. AIG management (which was left almost entirely in place) decided to pay themselves some hefty bonuses.

After the inauguration the Obama Administration and the Congress considered putting some restrictions on bonuses in the 'stimulus' bill, later dubbed the American Recovery Act (or something like that). This act is separate from the TARP legislation signed by Bush. Geithner (together with Senate leaders) agreed to take the restrictions out for expediency and because it would likely be challenged in court as an illegal override of TARP.

Now that the press echo chamber has made these bonuses the dramatic storyline of this week, the Congress and the Administration stopped nearly all other action to express indignation and pass some likely illegal legislation to tax the bonuses and recoup the few million dollars.

Enough already! This money is peanuts. The money is gone. Say goodbye to it and move on, please. Secretary Geithener and President Obama ought to be focusing on reforming, re-regulating and re-capitalizing our crumbling financial system. Republicans are shameless but they should be ashamed of themselves for making an mountain of this molehill. The press and the American public shouldn't be expected to know better, because....well....they are sheep.