AIG and the Nazis

[lakesailer_mi]

If AIG had been forced to file for receivership (e.g. Chpt 11) all labor contracts would have been re-negotiated. The only reason they did not have to file was the multi-billion dollar transfer (interestingly, it was a transfer much larger than an entire years worth of all welfare program transfers ever!).
It would seem to me that this bailout should be essentially a receivership and the same LEGAL rules should apply.

 

[unregistered]

 

[unregistered]

 

[Slowlane]

This just out (30 min ago)

http://news.yahoo.com/s/ap/20090318/ap_on_go_co/aig_outrage_115

WASHINGTON – The chairman and CEO of American International Group acknowledged Wednesday to congressional interrogators that some of the insurance giant's executive bonuses are "distasteful."

"We are meeting today at a high point of public anger," Edward Liddy, chairman and chief executive officer, conceded in testimony prepared for a hearing by a House Financial Services panel. "I share that anger," he said.

Liddy told lawmakers that the company grew into an internal hedge fund that became overexposed to market risks. AIG is the largest recipient of federal government emergency assistance. It has received $170 billion in bailout help and the government holds a nearly 80 percent stake in the company.

AIG is under fire for $220 million in retention bonuses paid to employees in its troubled financial products division. The most recent payment of $165 million began to be paid last Friday and caused a furor.

Liddy, who has led American International Group Inc. since last fall, has become the reluctant defender of princely employee bonuses that members of Congress — and much of the American public — find indefensible.

The retention payments — ranging from $1,000 to nearly $6.5 million — were not his idea. Liddy himself is not getting a bonus. The deals were cut early last year, long before then-Treasury Secretary Henry Paulson asked Liddy to take over the company.

In his prepared remarks Wednesday, Liddy said, "No one knows better than I that AIG has been the recipient of generous amounts of governmental financial aid. We have been the beneficiary of the American people's forbearance and patience."

But he also said that "we have to continue managing our business as a business — taking account of the cold realities of competition for customers, for revenues and for employees."

"Because of this, and because of certain legal obligations, AIG has recently made a set of compensation payments, some of which I find distasteful," Liddy said.

He told lawmakers, "I want to assure you that the people at AIG today are working as hard as we can to execute the restructuring plan that, we believe, offers America's taxpayers the best possible income."

 

[Lavared]

I don't imagine that the gov't stepping all over business or employment contracts would bode well for the future of trust in contracts and that wouldn't bode well for business. Oi. So much for my promise of 1000 widgits against your promise to pay for them.

As "distasteful" as it may be, a promise is a promise. If it can't be renegotiated it should be upheld.

 

[unregistered]

 

[off2bed]

Hey, I have to tell you. There's nothing like the sanctimonious hypocrisy of a Barney Frank, up for re-election soon, slobbering away in full fledged Buddy Hackett mode about the sins of AIG that he failed to regulate.

What a fucking leaf blower.

How can anyone watch him talk and take him seriously as a human being? What a cartoon character he is - makes Foghorn Leghorn seem honorable.

A judge friend of mine agrees that singling out the AIG bonuses is Bill of Attainder material.

 

[Lavared]

A bill of attainder was a legislative act that singled out one or more persons and imposed punishment on them, without benefit of trial. Such actions were regarded as odious by the framers of the Constitution ...

With good reason.

 

[Lavared]

What a cartoon character he is - makes Foghorn Leghorn seem honorable.

Hey! I like Foghorn Leghorn.

 

[off2bed]

Hey! I like Foghorn Leghorn.

Me too, but not for Senator.

 

[Lavared]

Wow. So now the head of the company is requesting that those receiving bonuses over one million return half of them.

I received a retention bonus once. You'd have to take a few zeros off to get from the AIG bonuses to what I received but, in theory, it's the same thing. I would have been livid if my ex-company had asked me to return half of what they paid me based on a contract where I promised to stay an extra six months and they promised to pay me for sticking around even though I knew my job was ending.

On a similar note, I wonder how easy it is for ex-AIG folks to pick up new jobs? Maybe it is fairly easy but I picture HR people looking at their resumes and laughing, "They think we'll hire them here?!"

 

[hogjack]

defend the Constitution..

The U.S. Constitution and Bill of Rights have been taking it up the ass for years and defenders have been called unpatriotic, naive and troublemakers.

But the AIG resolution will tip the balance profoundly. Ha! Double Ha Ha!

Gigglesnort and a plain snort.

 

[Ishmael]

Wow. So now the head of the company is requesting that those receiving bonuses over one million return half of them.

I received a retention bonus once. You'd have to take a few zeros off to get from the AIG bonuses to what I received but, in theory, it's the same thing. I would have been livid if my ex-company had asked me to return half of what they paid me based on a contract where I promised to stay an extra six months and they promised to pay me for sticking around even though I knew my job was ending.

On a similar note, I wonder how easy it is for ex-AIG folks to pick up new jobs? Maybe it is fairly easy but I picture HR people looking at their resumes and laughing, "They think we'll hire them here?!"

It's all shuck and jive. They're lying through their damned teeth. They're trying to make the case that the government should set all the rules regarding salaries, bounuses, etc. Now, is that going to apply to sports and entertainment figures as well? If not, why not?

It also distracts from the fact that little Timmy is incompetent and in WAY over his head. Or at least they're trying to make that case.

Ishmael

 

[off2bed]

They're trying to make the case that the government should set all the rules regarding salaries, bounuses, etc. Now, is that going to apply to sports and entertainment figures as well? If not, why not?

Especially if they play in a government funded stadium. There's also the interstate commerce clause.

But Hollywood will somehow be exempt.

 

[Slowlane]

Wow. So now the head of the company is requesting that those receiving bonuses over one million return half of them.

I received a retention bonus once. You'd have to take a few zeros off to get from the AIG bonuses to what I received but, in theory, it's the same thing. I would have been livid if my ex-company had asked me to return half of what they paid me based on a contract where I promised to stay an extra six months and they promised to pay me for sticking around even though I knew my job was ending.

On a similar note, I wonder how easy it is for ex-AIG folks to pick up new jobs? Maybe it is fairly easy but I picture HR people looking at their resumes and laughing, "They think we'll hire them here?!"

I seem to remember somebody saying that a lot of it was retention bonuses. And not all were large, some as small as five thousand dollars. (OK in my world that's large.

 

[Ishmael]

Sen. Dodd, famous for his 'sandwiches' with the soon to be late murderer, Edward Kennedy, has finally stepped forward and admitted the he was indeed responsible for the AIG bonus loophole. This was after categorically denying that he was and trying to pawn it off on some un-named treasury dweeb.

I suppose that it's safe to presume that he is also responsible for the loophole that is responsible for the bonuses that are gong to be paid to the Fannie Mae execs.

These fucking clowns couldn't run a washing machine and they want to run the economy?

Ishmael

 

[Lancecastor]

If you don't compensate the best and brightest properly...they'll all be in China soon enough.

Americans love the Blame Game...but one thing you're short of it top notch exec talent....so sure, drive them out of the country!

You can't have it both ways, Ish...you can't complain about the socialist government intervening and the compensation contracts at the same time.

 

[Sharon_]

If you don't compensate the best and brightest properly...they'll all be in China soon enough.

Dear God, let it be so....

What a maniacally evil plan to eliminate our trade deficit.

 

[unregistered]

 

[Ishmael]

If you don't compensate the best and brightest properly...they'll all be in China soon enough.

Americans love the Blame Game...but one thing you're short of it top notch exec talent....so sure, drive them out of the country!

You can't have it both ways, Ish...you can't complain about the socialist government intervening and the compensation contracts at the same time.

Lance, I think you better read back in the thread. I have NO problem with the compensation contracts. Never did. I don't suffer from wealth envy. You are making a very erroneous assumption, but that is one of your traits.

On the 'blame game', you're absolutley right. It's become a national fixation and has gotten to the point that we now punish the innocent. A-fucking mazing.

About the only thing that can be said for a Socialist state is 90% of our lawyers are going to look around one day and say, "What happened? Things seemed to be going so well for us once." It would be nice if we could put 90% of them on the street without going Socialist.

It appears that Obama & Companies 'rope-a-dope' is starting to backfire though. You can't keep up the bullshit forever and facts seem to leak out no matter how fast Fucky Shoemouth runs to the cameras.

The Fed just pumped another $1.2 trillion into the economy today. The market went up on the news, I guess they haven't figured in the inflation yet.

On a related subject, metals such as silver are now being sold at 'spot' plus a $2.50/oz. premium. An unheard of event just a year ago. And bullion is almost impossible to find, gold, silver, platinum, or palladium. I have to believe that Mason and Kerr are having a banner year. The point being is that is wealth that is disappearing from the economy, and at an unheard of rate.

Ishmael

 

[Medikated]

If you don't compensate the best and brightest properly...they'll all be in China soon enough.

Bull Shit! Let them leave....its a joke.

The real question is, when did Tim Geithner know about the bonuses and when will he be asked to resign. Hopefully soon.

 

[Sharon_]

On a related subject, metals such as silver are now being sold at 'spot' plus a $2.50/oz. premium. An unheard of event just a year ago. And bullion is almost impossible to find, gold, silver, platinum, or palladium. I have to believe that Mason and Kerr are having a banner year. The point being is that is wealth that is disappearing from the economy, and at an unheard of rate.

Ishmael

That would make two years in a row for them.

Last year's ethanol debacle on top of the drought on top of OPEC's shenanigans causing the huge spike in food prices drove their sales to highs not seen in decades due to return of the home gardener & canner. I saw shortages and out of stocks in several stores that I can't remember seeing in my lifetime.

 

[TurdFergeson]

It won't last much longer.

More predictions from the wrong wing.

You're all like the Wicked Witch. Gazing in your crystal balls and hoping something bad happens to Dorothy and her friends.

Get a grip.

http://www.stanford.edu/~lsmith36/Wicked%20Witch%20of%20the%20West.jpg

 

[Slowlane]

That would make two years in a row for them.

Last year's ethanol debacle on top of the drought on top of OPEC's shenanigans causing the huge spike in food prices drove their sales to highs not seen in decades due to return of the home gardener & canner. I saw shortages and out of stocks in several stores that I can't remember seeing in my lifetime.

I've noticed that too, jars, lid, rings, all hard to find sometimes. Which I find strange since most things freeze as well as they can, and much cheaper.

 

[Sharon_]

I've noticed that too, jars, lid, rings, all hard to find sometimes. Which I find strange since most things freeze as well as they can, and much cheaper.

Sure...till a freak hurricane in Kentucky takes your power out in the heat of summer

I was out of power for three or four days, but I keep my freezer full to the top with jugs of water if need be, and was able to use those to keep my refrigerator cold, so lost no food.

Other folks, not so much foresight and they lost their deep freeze contents as well as their refrigerator. And I think chest freezers have gone the way of the dinosaur in recent decades.

I prefer canning because it keeps longer; and only freeze the obvious things: broccoli, strawberries, corn, tomatoes whose lids didn't seal in the canner, etc.