cap1kid

AIG- Bailout Bonuses!!

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Why is everyone upset with AIG? That's what businesses do- reward the employees- What did congress expect them to do with the money- give it to charity, hire the homeless, pay off a strangers house that is in foreclosure, buy health insurance for the unemployed?

The anger should be directed at the people who gave AIG our money.

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Exactly right. Reason #954 that bailout money is a bad idea. Do they realize that if they don't give out bonus money AIG will lose the employees that are keeping it afloat and will never pay back the US taxpayers? In addition, the payouts are contractual. If they withhold the bonus, they'll be SUED for TWO TIMES the amount owed plus attorney's fees. So they'll pay out roughly two and half times the amount of money and their most productive employees will jump ship anyway. How is that productive?

Another thing- Congress knew about the bonus structure when they voted to extend funds to AIG and determined that they were not going to place bonus limitations on the money (compare to the executive waivers required at Chrysler in exchange for bailout cash). This fake little "surprise" is no secret. Frank and Dodd are like OJ Simpson on the golf course looking for his wife's killer. :lol:

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Another thing- Congress knew about the bonus structure when they voted to extend funds to AIG and determined that they were not going to place bonus limitations on the money (compare to the executive waivers required at Chrysler in exchange for bailout cash).

That needs to be repeated : CONGRESS KNEW ABOUT THE BONUSES BEFORE THE BAILOUT.

And if they didn't know they should have. They are just grandstanding-The joke is on us.

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Keep watching my right hand, my left hand is not doing anything. I promise! ........... Really!!

http://fdralloveragain.blogspot.com/2009/03/obama-outraged-aig.html

Obama "Outraged" at AIG?

Apparently the president was "outraged" that AIG paid out $165M in pay and bonuses after his own congress forced $175B down their throats in the face of reported 10:1 to voter opposition (that was the low end).

I guess the president doesn't follow Goldman Sachs, which paid out $11B in pay and bonuses after grabbing $10B from taxpayers.

Gee, let's see...

$11B (GS) vs. $165M (AIG)

110% of taxpayer funds (GS) vs. 0.1% of taxpayer funds (AIG)

But isn't this the obvious problem with centrally managed Socialist/Marxist economies? A few people, especially those dumb enough to think they can manage the entire world economy in real time, cannot possibly understand a single company from an outsider's perspective, let alone the truly infinite complexity and often counter intuitive efficiencies of global capitalism, assuming it was ever tried.

It is also a shame the President of the United States feels the need to belittle his office by quarreling with the CEO of a penny stock, and apparently losing.

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How about we avoid this garbage altogether and agree never to use hard-earned taxpayer money to bailout certain individuals or businesses? Then we don't have to agree or disagree on whether or not someone is worthy or legally entitled to a bonus. Problem solved!

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So what are you two saying? That the government is trying to get us all riled up to further their own agenda? Creating a witchunt of some sort to distract us? Not exactly but kind of like my girls the Dixie Chicks?

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I'm just saying people are outraged at AIG-- the outrage should be directed at the people who gave them the $$$$. They knew the plans for the money. Now you got the President and all these Senators grandstanding- THEY KNEW!

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I'm just saying people are outraged at AIG-- the outrage should be directed at the people who gave them the $$$$. They knew the plans for the money. Now you got the President and all these Senators grandstanding- THEY KNEW

Damn right they knew, but is anyone surprised?:?:

http://www.politico.com/news/stories/0309/20108.html

Why AIG outrage rings hollow

By JIM VANDEHEI | 3/17/09 11:25 AM EDT Text Size:

President Barack Obama and everyone else in Washington is in a sprint for the microphones to express outrage at the big bonuses for the knuckleheads who screwed up American International Group and threaten to do the same to the rest of the economy.

Obama wants to take every legal step possible to kill the bonuses. Sen. Chuck Grassley (R-Iowa) wants the AIG executives to consider killing not just the bonuses but themselves, too.

Here’s something neither Obama nor Grassley answered in their bellicose remarks Monday: Why did it take so long for the president and senior lawmakers to get so worked up? More troubling, why did it take so long for them to discover AIG planned to give huge bonuses in the first place?

Watching the coverage the past 24 hours, it would seem AIG just made public its plans to give top employees big bonuses. Wrong.

AIG disclosed its retention-bonus program more than a year ago, including bonuses directed to those handling the exotic derivatives that got the company and the country into this mess.

The bonuses were essentially a nonissue when AIG got its initial bailout money, almost $150 billion under President Bush in the two months surrounding the presidential election. Joe Biden, then the vice presidential nominee, came out strongly against the bailout. Obama did not.

Timothy Geithner, then at the New York branch of the Federal Reserve, was a huge proponent and architect of the AIG bailout. So if Obama had strong private opposition to the idea it did not affect his pick for the person who would oversee all bailouts.

The bonuses were again a nonissue when Obama himself increased the bailout to $173 billion last month.

It’s not like Republicans were any quicker to stop this impending “outrage.” Grassley might want AIG employees to seriously think about suicide now but the Iowa senator, who has been the senior Republican on the Senate Finance Committee for nearly a decade, was seemingly unaware of AIG’s publicly announced plans.

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Sen. Chuck Grassley (R-Iowa) wants the AIG executives to consider killing not just the bonuses but themselves, too....

but the Iowa senator, who has been the senior Republican on the Senate Finance Committee for nearly a decade, was seemingly unaware of AIG’s publicly announced plans.

ASLEEP AT THE WHEEL! Not only do they ignore the will of the people- they don't even know what they are approving.

It's a wonder politicians don't seem to care where tax money goes.... they seem to be the ones caught not paying taxes.

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Here's what I am saying: they let these bonuses through on purpose. Dodd himself attached the amendment to the bill disallowing limits on bonuses! Then they use this as an`excuse to control our economy even more from Washington (we're starting to look like the Kremlin). Its the perfect political move- now they're on "our side" as they now exert more force on private business. And its scary how fast the public is lapping this crap up. The point is they should have never received my taxpayer dollars in the first place. And they're unavoidable- owed to them. Now that they have it, they need to pay their contractual debts- to employees as well. Or face suit.

The ONLY good thing about this is that I think it'll backfire. The next request for a bailout may finally fail because the public is fed up. Its about time we stop stealing from the next generation. :evil::evil::evil::evil:

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Here's what I am saying: they let these bonuses through on purpose. Dodd himself attached the amendment to the bill disallowing limits on bonuses! Then they use this as an`excuse to control our economy even more from Washington (we're starting to look like the Kremlin). Its the perfect political move- now they're on "our side" as they now exert more force on private business. And its scary how fast the public is lapping this crap up. The point is they should have never received my taxpayer dollars in the first place. And they're unavoidable- owed to them. Now that they have it, they need to pay their contractual debts- to employees as well. Or face suit.

The next few years are going to be interesting!:shock:

http://www.examiner.com/x-268-Right-Side-Politics-Examiner~y2009m3d17-Obama-Received-a-101332-Bonus-from-AIG

Obama Received a $101,332 Bonus from AIG

March 17, 3:01 PM · 7 comments

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AP Photo/Ron Edmonds

Senator Barack Obama received a $101,332 bonus from American International Group in the form of political contributions according to Opensecrets.org. The two biggest Congressional recipients of bonuses from the A.I.G. are - Senators Chris Dodd and Senator Barack Obama.

The A.I.G. Financial Products affiliate of A.I.G. gave out $136,928, the most of any AIG affiliate, in the 2008 cycle. I would note that A.I.G.’s financial products division is the unit that wrote trillions of dollars’ worth of credit-default swaps and "misjudged" the risk.

The Washington Post reports a "mob effect" at A.I.G financial products division:

A tidal wave of public outrage over bonus payments swamped American International Group yesterday. Hired guards stood watch outside the suburban Connecticut offices of AIG Financial Products, the division whose exotic derivatives brought the insurance giant to the brink of collapse last year. Inside, death threats and angry letters flooded e-mail inboxes. Irate callers lit up the phone lines. Senior managers submitted their resignations. Some employees didn't show up at all.

With the anger and rage that is being exhibited against A.I.G., perhaps the bonuses Obama received from A.I.G. explain Obama's A.I.G crocodile tears.

Now that the Wall street Journal has revealed that A.I.G. paid bonuses of $1 million or more to 73 employees, it's time to ask if recipients of A.I.G. "bonuses," including President Obama, will give what now ought to be taxpayer money back?

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The Washington Post reports a "mob effect" at A.I.G financial products division:

A tidal wave of public outrage over bonus payments swamped American International Group yesterday. Hired guards stood watch outside the suburban Connecticut offices of AIG Financial Products........

The mob should be at Capitol Hill- they gave OUR money away, and knew what was going to happen with it.

Spare the tar and feathers..... spoil the politician.

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...

why did it take so long for them to discover AIG planned to give huge bonuses in the first place?

...

AIG disclosed its retention-bonus program more than a year ago, including bonuses directed to those handling the exotic derivatives that got the company and the country into this mess.

It's my understanding, from listening to the various talking heads:

1) These are retention or recruitment bonus. Not performance bonuses. I suspect many of us have taken a job where we were given some sort of signing bonus in the form of a signed contract. We agree to go work for company X, we get a check, and if we stay for at least Y months/years we don't have to pay it back. Again, signed contracts.

2) It's been known since the U.S. taxpayer took ownership of AIG. Apparently, the gumint looked into whether there were opt out clauses in the contracts, and even showed the contracts to private law firms and law school professors. All concluded the contracts were rock solid and that if the gumint tried to back out there would be a lawsuit and the bonus recipients would win in court, plus their legal fees. In short, fighting the bonuses would be even MORE costly to the U.S. taxpayer.

Since the contracts appear solid, the gumint appears it's going to try and villify 'em.

What's next? Namen? Papers?

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Look, nothings going to change until we vote the critters out. CONgress had a, roughly, 10% approval rating yet all but 6 or 7 of them got re-elected! It's the best of both worlds for them, get paid big bucks by the lobbyists to do their bidding, and get re-elected by the rubes back home.

Get informed (really informed, not just sound bites from TV or newspaper headlines), vote against them, actively campaign against them, tell others to vote against them. Meanwhile, call and write the dirtbags in office and tell them how you feel.

They are not going to see the light 'til they feel the heat!!:evil:

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Chris Dodd was a major contributor to the crisis we currently find this country in. He then makes sure that those bailed out can have their bonuses.

Now they want their cake and eat it too! Those in power want us to believe that they didn't know and that they are just as angry, but THEY did this! THEY have no right to be angry.

The only issue I have is that AIG is stating that these were "retention" bonuses while 11 of them have already left the company and they STILL got bonuses.

Another issue raised by others.....they are giving bonuses to "keep the talent" that drove AIG into the ground in the first place!

Here is the main driver folks.....

The current administration/senate/congress are changing things too fast for even the media to keep up. They then focus the average american on hating those greedy selfish fatherless-children (;)) - aka: hate the rich.....to get us focusing on the 'rightness' of a socialistic society. In the meantime, ''The administration and congressional Democrats are debating whether to use a parliamentary procedure called reconciliation to advance some of the biggest items on the president’s agenda. The move would allow Democrats to approve plans to raise taxes by $1 trillion, create a cap-and-trade system to rein in greenhouse-gas emissions, and overhaul health care without a single Republican vote. "

http://www.bloomberg.com/apps/news?pid=20601087&sid=aI5mX_2Yfz7s&refer=worldwide

It seems that the powers that be want what they want and they want it done before anything can be done to stop them!

We, Americans, need to wake up and vote the entire lot of them out of office and take control of this country!

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Dateline: Connecticut/ Washington DC 2008- Chris Dodd receives at least $103,000 in political contributions from AIG!

Tuesday 03/17/09 - Chris Dodd has 'no idea' how the provision allowing huge AIG bonuses with bailout money became law.

Wednesday 03/18/09- Chris Dodd admits he added provision: "I agreed reluctantly," Dodd said. "I was changing the amendment because others were insistent."

OTHERS WERE INSISTENT???? WHOSE PULLING THIS PUPPETS STRINGS???? certainly not the American Public

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Goldbug hit the proverbial nail on the proverbial head. If we want change.... we have to make sure that those in congress who aren't doing their jobs, DON'T have jobs to come back to when they go up for re-election.

We have no right to complain about this (or any) situation if we continually vote the same vermin back into the offices they shouldn't be in.

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