The thus far untold part of this story:
“Right now, you get the feeling this is all about protecting [White House Chief of Staff] Rahm Emanuel,” says a former Treasury Department lawyer, who worked in that department’s counsel’s office on the Troubled Asset Relief Program (TARP) before joining a D.C.-based law firm in February. “At the time, we were led to believe there were basically three or four people from the Administration at the table when the final deals were cut and one of them was Emanuel.”
Informal advisers to Geithner are growing increasingly frustrated, they say, that Geithner is being held up as the straw man for the public anger over the bonuses. “Just over the weekend you saw a new guy added to the target list, [White House economics adviser Larry] Summers,” says a longtime Geithner colleague at the New York Fed. “You have Dodd, Geithner, Summers, but there were other, more senior political people involved in this mess, and their names aren’t being mentioned. Why isn’t anyone asking Rahm Emanuel, ‘What meetings were you in?’ ‘What did you and the President know and when did you know it?’ Tim has some culpability, but he’s not the guy who signed off on the Dodd language. He wasn’t that empowered to do something like that.”
They have to protect Emanuel because the fall of Emanuel would be the domino closest to Obama, and it would be hard to keep Obama clean in the AIG mess if Emanuel was forced out over the scandal. The circumstantial evidence is already very strong that the sign-off on the AIG bonuses was the result of “pay for play”, Chicago-style politics; Obama can’t afford “what did the President know and when did he know it” questions about AIG. But this means that, at least for a while, Emanuel has to survive…thus the apparent tossing of Geithner and Summers under the bus.
We must keep in mind the depth upon depth of corruption we’re going to have here – we have a hopelessly corrupt Democratic party leadership which feels that an Obama Administration means a free pass. They aren’t worried about the Justice Department coming down on them, they know they can stymie any Congressional ethics probes and they figure the MSM has gotten itself too highly invested in Obama to really play the role of investigative watchdog. But the lynch pin of all this is Obama – as long as he’s safe and popular, everything else comes together, and so they have to keep the muck as far away from him as possible.