When Incompetence Thundered

see By Michael Gerson Friday, March 20, 2009; Page A19 Washington Post:

AIG's November SEC filing set out its intention to provide more than $469 million in "retention payments" to employees, eliciting a smattering of congressional protest. Concerns on the broader compensation issue were serious enough to ensure unanimous Senate passage of an amendment to the stimulus bill sponsored by Sens. Olympia Snowe and Ron Wyden that penalized bailout bonuses in excess of $100,000.

But the Snowe-Wyden amendment disappeared into the misty bog of a House-Senate conference committee, only to be trumped by grandfathered language in AIG's retention bonuses. At first, this example of immaculate legislation -- miraculously fatherless seemed virtually spontaneous. Only after explicitly denying responsibility did Senate Banking Committee Chairman Christopher Dodd eventually admit to including the exception under administration pressure. But it doesn't sound like there was much of a fight. Administration input came from unnamed Treasury Department staffers, not high-level officials. Dodd said he viewed these as "innocent modifications."

The lack of focus, judgment and competence on the part of Congress and the administration has its explanations. But for those dealing in trillions, millions are like dirty pennies on the street. Hollow outrage and blame-shifting from Congress and the administration to the people is inexcusable, however.

"This is an example," thunders Rep. Barney Frank, "of people at the commanding heights of the economy misbehaving, abusing the system" -- which is completely true . . . of the conference committee that reshaped the stimulus bill in secret. Sen. Charles Grassley urged AIG executives to contemplate suicide. This combination of viciousness, shamelessness and cluelessness has consequences. It drains what little political will remains to confront the credit crisis -- an effort that may eventually require spending a trillion dollars or more to help purchase toxic debt. Thanks to AIG, Congress and the administration, Treasury Secretary Timothy Geithner may find his next round of necessary bailouts greeted by a revolt of left and right.

http://www.washingtonpost.com/wp-dyn/content/article/2009/03/19/AR2009031903039.html?wpisrc=newsletter&wpisrc=newsletter

So what else should we expect from Washington? Keep up the pressure, and force them to perform. Each and every one! The same lack of accountability can be seen in other places, where staffers make decisions and then decide to duck. Want me to start my list? I would start with some Commissioners and their managers at an agency, who avoid looking into problems that are readily corrected now, but fester as they go on....and on and on.