Rep. Maxine Waters asked Secretary Geithner about his connections to Goldman Sachs at a House banking hearing today. Goldman Sachs is known to have received bailout money given to A.I.G. Goldman may have participated in the government decision to provide the original bailout money to A.I.G.
Geithner told Waters that Goldman Sachs could help manage the new program to help banks remove toxic assets from their books. “It is possible, if they are qualified,” he said.
Former Treasury Secretary Hank Paulson was once chief of Goldman. “Neither did it look good when Geithner — himself a protégé of notorious Goldman alum John Thain, the Merrill Lynch chief who paid out billions in bonuses after the state spent billions bailing out his firm — picked a former Goldman lobbyist named Mark Patterson to be his top aide,” writes Matt Taibbi in Rolling Stone.
This video is from CNN’s Newsroom, broadcast Mar. 24, 2009.