Following the AIG bonuses debacle, two prominent consumer advocates have called on Treasury Secretary Timothy Geithner to resign.
Harvey Rosenfield and Jim Donahue have written to President Obama to express their lack of confidence in Geithner’s ability to grapple with the ongoing financial crisis due to his previous association with Wall Street while chairman of the New York Federal Reserve Bank and an author of the first round of bailouts.
They believe the Treasury Department was aware of the controversial bonuses and retention payments but failed to act until after AIG paid some $180 million worth of them.
"It is clear that Treasury Secretary Timothy Geithner cannot provide the requisite independence that is required in an environment in which financial institutions and other businesses are demanding trillions of dollars of taxpayer money," the letter to the President states. "With respect, we urge you to ask for his resignation."
Recently, WallStreetWatch.org issued a report identifying policy decisions by the federal government that led to the current financial meltdown and how those policies were dictated by Wall Street through $5 billion in campaign donations and lobbying fees between 1998 and 2008.
It states that many of these firms are now receiving American taxpayer dollars.