Sen. Kit Bond is blaming the Obama administration for not blocking bonuses to AIG when it approved the release of an additional $30 billion dollars for the company earlier this month.
"AIG’s intention to pay these bonuses has been no secret, and the Administration was completely aware of the payments," reads the release from the senior Senator's office. "When the Administration gave AIG an additional $30 billion in taxpayer funds earlier this month, Treasury Secretary Geithner could have ensured taxpayer dollars wouldn’t be used to pay the some $170 million in bonuses," the Bond release continues.
WATCH VIDEO OF BOND HERE
Bond called this latest misstep by Secretary Geithner just another example of his failed leadership, but said the greater problem is the administration's "knee-jerk" reaction to the crisis.
Bond said President Obama should focus on the toxic assets clogging the credit system by 1) identifying the failing institutions 2) removing the toxic assets and "failed leadership" and 3) returning healthy banks to the private sector.
At the White House Daily briefing Tuesday, spokesman Robert Gibbs was pelted with questions about the AIG bonuses and Geithner.
Gibbs said that President Barack Obama has confidence in Geithner and the Treasury Department's oversight. But Gibbs underscored that Obama is working as quickly as possible with Congress to find ways to block the bonuses at the American International Group Inc. or recoup that money.