Geithner Gets Hammered from Both Sides

Mica Calls for Resignation
By Michael P. Tremoglie
Tremoglie's Tea Time Blog

Rep. John Mica (R.- Fla) and Rep. Steven Lynch (D.-Mass.) berated Treasury Secretary Timothy Geithner during his testimony this morning before the House Oversight Committee. Mica called for his resignation.

Geithner is being questioned from both Democrats and Republicans about his relationship to Wall Street. Mica and Lynch zeroed in on the AIG bailout.

Geithner's opening statement and his responses to a sympathetic Paul Kanjorski (D.-Pa.) contained a great degree of righteous indignation. It reminded one of New Jersey Senator Robert Torricelli's angry denial of wrongdoing when he was accused of corruption in office, allegations for which he was subsequently convicted.

However, Mr. Mica was not so sympathetic. He said he never wanted Geithner to be Treasury Secretary because he did not "pay his taxes."

Mica wanted Geithner to answer why they should not "ask for his resignation." He questioned Geithner's actions concerning the role of the New York Federal Reserve Bank - of which Geithner was president - in bailing out AIG.

Mica said believed that Geithner's responses " defied credulity."

Mr. Lynch said that he was convinced that Geithner did not act in the best interest of the American people. He cited that when Bear Stearns was going bankrupt the government negotiated a bailout of giving Bear Stearn shareholders " two cents on the dollar." Yet, AIG was given "one hundred cents on the dollar" and that this money was merely a " pass through" to Goldman Sachs, which was the ultimate recipient of the funds.

Geithner repeated that he acted in the best interest of the public. However, Lynch was not buying it and said that Geithner's actions were more indicative of someone working for the interest of wealthy influential people.