Elphaba Posted March 17, 2009 Report Share Posted March 17, 2009 President Obama is trying to stop AIG from using the taxpayer's bailout money to stop the company from giving its executivres a total of $165 million in bonuses.He said he is looking for a legal way to do so, and I think it's possible there is no legal way, though I hope there is.YouTube - President Obama's Comments on AIG BonusesElphaba Quote Link to comment Share on other sites More sharing options...
Palerider Posted March 17, 2009 Report Share Posted March 17, 2009 He should forget about them and stop Congress from getting a raise.....they do less than AIG.... Quote Link to comment Share on other sites More sharing options...
jadams_4040 Posted March 17, 2009 Report Share Posted March 17, 2009 President Obama is trying to stop AIG from using the taxpayer's bailout money to stop the company from giving its executivres a total of $165 million in bonuses.He said he is looking for a legal way to do so, and I think it's possible there is no legal way, though I hope there is.YouTube - President Obama's Comments on AIG BonusesElphaba Well the government is now 85 percent dividend holder in this company because of the enourmous amounts of money we loaned them, SSOOO i would only beleive being 85 percent stock ownership {us taxpayers} we should be able to demand the "payees" of this 160 million of our tax dollars is not given to these greedy individuals as extra bonuses!???? Quote Link to comment Share on other sites More sharing options...
a-train Posted March 17, 2009 Report Share Posted March 17, 2009 As a shareholder, I vote to shut it down. Second for that motion? -a-train Quote Link to comment Share on other sites More sharing options...
Just_A_Guy Posted March 17, 2009 Report Share Posted March 17, 2009 Mixed feelings on this. My understanding is the bonus were distributed between about 400 middle-managers.Lots of these guys are probably the buffoons who got AIG where it is today, but they also (presumably) represent a lot of institutional knowledge and even (in rare cases) talent. Do we really want them to flee AIG en masse because AIG has not paid them what they were led to expect to be paid? Quote Link to comment Share on other sites More sharing options...
Just_A_Guy Posted March 17, 2009 Report Share Posted March 17, 2009 Here's an argument from Instapundit. It's probably technically an et tu fallacy, but interesting nonetheless:CONGRESSIONAL PORK APOLOGISTS TELL US THAT EARMARKS DON’T MATTER BECAUSE THEY’RE A TINY FRACTION OF THE BUDGET: So why all the excitement about those AIG bonuses that represent only a tiny fraction of the bailout money? It’s all taxpayer money, right? Quote Link to comment Share on other sites More sharing options...
RavinMaven Posted March 17, 2009 Report Share Posted March 17, 2009 I like Obama, but this seems like something that should have been addressed before he threw a bunch of cash at the company.I wish that his team would have approached the bailout with the same prudence and calculation that they used when they were running his campain. Quote Link to comment Share on other sites More sharing options...
Madriglace Posted March 17, 2009 Report Share Posted March 17, 2009 AIG had a contractual agreement to pay the bonus out of their money ... that is our money so it does not qualify. The only reason AIG got bailed out is because it is where alot of Congresses bennies are held. The radio station I listen to had a thing going the morning of the election ... they asked "If you were elected president what would be the first thing you would do?" One lady got my vote ... she said to put all of Congress, the senate and the pres and his buddies on minimum wage and see how fast they worked out the problems. Quote Link to comment Share on other sites More sharing options...
Wingnut Posted March 17, 2009 Report Share Posted March 17, 2009 Interesting article on the topic: How did the AIG executive "bonuses" become a legal obligation? - By Brian Palmer - Slate Magazine Quote Link to comment Share on other sites More sharing options...
Just_A_Guy Posted March 17, 2009 Report Share Posted March 17, 2009 The only reason AIG got bailed out is because it is where alot of Congresses bennies are held.My understanding was that AIG basically was the "insurer's insurer"--it underwrote insurance policies on all the mortgage and other securities deals that went south. AIG might legitimately have been the one financial entity that really was "too big to fail".But then, maybe I just believe that because the AIG bailout happened on Bush's watch. Quote Link to comment Share on other sites More sharing options...
bytor2112 Posted March 17, 2009 Report Share Posted March 17, 2009 A good article from the Wall Street Journal... Quote Link to comment Share on other sites More sharing options...
prospectmom Posted March 17, 2009 Report Share Posted March 17, 2009 CBS reported the money is going to many of the agents hogot AI in this mess... Contacts get cancelled every day... just an excuse to me. Quote Link to comment Share on other sites More sharing options...
bytor2112 Posted March 17, 2009 Report Share Posted March 17, 2009 One more good article about AIG.... Quote Link to comment Share on other sites More sharing options...
Moksha Posted March 17, 2009 Report Share Posted March 17, 2009 I agree with Obama over not giving bonus money to these people who have contributed so much to their own failure. This is adding insult to our injury. Quote Link to comment Share on other sites More sharing options...
talisyn Posted March 17, 2009 Report Share Posted March 17, 2009 (edited) Mixed feelings on this. My understanding is the bonus were distributed between about 400 middle-managers.Lots of these guys are probably the buffoons who got AIG where it is today, but they also (presumably) represent a lot of institutional knowledge and even (in rare cases) talent. Do we really want them to flee AIG en masse because AIG has not paid them what they were led to expect to be paid?Where would they go?Quick question I've wondered....isn't a bonus a reward for profit-making? I know I don't get a bonus unless my factory makes the goals. How can a company that has received billions of dollars and is still in trouble give out bonuses??? So it was in the contract....what makes AIG's contracts so much more special than the ones held by autoworkers for Ford and GM? Edited March 17, 2009 by talisyn spelling Quote Link to comment Share on other sites More sharing options...
Just_A_Guy Posted March 18, 2009 Report Share Posted March 18, 2009 (edited) Do we really want them to flee AIG en masse because AIG has not paid them what they were led to expect to be paid?Where would they go?I yield.Edit: More from Instapundit:CHRIS DODD UPDATE: Amid AIG Furor, Dodd Tries To Undo Bonus Protections He Put In. “While the Senate was constructing the $787 billion stimulus last month, Dodd added an executive-compensation restriction to the bill. That amendment provides an ‘exception for contractually obligated bonuses agreed on before Feb. 11, 2009′ — which exempts the very AIG bonuses Dodd and others are now seeking to tax. . . . Separately, Sen. Dodd was AIG’s largest single recipient of campaign donations during the 2008 election cycle with $103,100, according to opensecrets.org.” Edited March 18, 2009 by Just_A_Guy Quote Link to comment Share on other sites More sharing options...
Palerider Posted March 18, 2009 Report Share Posted March 18, 2009 I wish more people would be as upset with our Congress getting a raise for doing nothing.....were all struggling and Nancy Pelosi and the rest get a raise.....now that I think about it...makes since to me....:) Quote Link to comment Share on other sites More sharing options...
beefche Posted March 18, 2009 Report Share Posted March 18, 2009 I agree, Pale. I was just talking to my Dad tonight about the Congress and their outrage over AIG bonuses--yet they are keeping their raise. If I don't perform well, I don't get a raise. Interesting.... Quote Link to comment Share on other sites More sharing options...
Palerider Posted March 18, 2009 Report Share Posted March 18, 2009 I agree, Pale. I was just talking to my Dad tonight about the Congress and their outrage over AIG bonuses--yet they are keeping their raise. If I don't perform well, I don't get a raise. Interesting.... and to think that Obama wants to base a Teachers salary off classroom results...but Congress still gets a raise... Quote Link to comment Share on other sites More sharing options...
Islander Posted March 18, 2009 Report Share Posted March 18, 2009 Trying to undo the performance bonuses could set a bad precedent. This is how foundational principles get eroded under the banner of "fairness." A department/division manager that had a goal to reduce operational costs in his/her division by, say 10%, and had a contracted performance bonus that had nothing to do with overall company performance. He/she met the goal so it is only logical that the company honor its internal legal contracts/obligations. Congress gave AIG a blank check for operational expenses. rent, utilities, salaries....compensation...get it? Yes, it does sound bad but it is the fault of congress for not attaching strings to the purse. Quote Link to comment Share on other sites More sharing options...
a-train Posted March 18, 2009 Report Share Posted March 18, 2009 It doesn't matter one lick whether the money went to bonuses at all. The real problem is that AIG is an entity that destroys wealth. It does NOT create it. It is a black hole and the more we throw into it, the more we lose. I don't care if they give it all to charity, every penny we give AIG is straight waste-100%. We desperately need the assets controlled by AIG to be redistributed to entities that will produce wealth. "Bailing out" AIG is simply preventing this redistribution and expanding the economic damage being inflicted by AIG. Bankruptcy and liquidation is necessary to put resources into productive use. -a-train Quote Link to comment Share on other sites More sharing options...
beefche Posted March 18, 2009 Report Share Posted March 18, 2009 Interesting article....if this is true (and I suspect that it is), then I want to fire Congress now.Washington knew AIG was preparing to pay bonuses Quote Link to comment Share on other sites More sharing options...
Palerider Posted March 18, 2009 Report Share Posted March 18, 2009 I heard yesterday that some Politicians knew a year ago that AIG was going to give a bonus ... Quote Link to comment Share on other sites More sharing options...
Just_A_Guy Posted March 18, 2009 Report Share Posted March 18, 2009 The real problem is that AIG is an entity that destroys wealth. It does NOT create it.Could you explain this a bit, please? Thanks. Quote Link to comment Share on other sites More sharing options...
beefche Posted March 19, 2009 Report Share Posted March 19, 2009 The more I hear about this mess, the more upset at Congress I'm becoming. They not only knew the bonuses would be paid....they put in a clause to allow it when the bailout money was given to them! Are you kidding me? I give you $$ to "save" your company from bankruptcy but you can then give it as bonuses???? Quote Link to comment Share on other sites More sharing options...
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