It seems that the first bombshell of the afternoon is that Liddy has just stated that Fed Chairman Ben Bernanke knew about the bonuses and approved the decision to pay them.
So far the focus has been on Geitner, what he knew and when he knew it.
Now it seems that the chain of information is from Bernanke to Geitner.
It will be very interesting to see what else is uncovered concerning the back and forth over these bonus payments over the course of the last few months.
It seems that Liddy's defense is going to be that he kept Bernanke fully apprised of these bonuses and the other actions he has taken. This is going to get ugly.
The hearing is live now on MSNBC and C-SPAN 3.
Live blog it here if you want...