AIG bonuses
#1
03-19-2009, 12:43 PM
AIG bonuses
Mr. Liddy volunteered to become CEO of AIG after they announced the need for federal assistance to avoid bankruptcy in October of 2008. At that time, contracts were in place to pay million dollar bonuses to many at AIG. Then came the stimulus bill in February of 2009. A bill that was passed with extreme urgency, a day before Pelosi left for Italy, and four days before Obama decided to sign it at a carefully chosen photo op. Obama broke his promise to allow the public four days to review the bill before congress would vote on it, even though he waited just as long to sign it into law. Now it appears that Sen, Dodd allowed a provision to slip into the bill at the last moment that protected the AIG bonuses. The bonuses were legally binding, thanks to Dodd, and were paid last week. A few days ago Barney Frank, Barack Obama, and Tim Geithner were shocked and outrage that these bonuses were given to AIG employees. Geithner was shocked even though he has been dealing with AIG since Liddy took over 6 months ago. Obama was shocked even though he signed the bill with the provision in it. Whoops! To make matters worse, Mr. Liddy volunteered to come to congress yesterday to speak with them about the bonuses. Many of the congressional memebers ripped into Liddy for allowing these bonuses to go through, and demanded to know the names of those who recieved them. Many who received the bonuses had nothing to do with the collapse of AIG and have even been instrumental in the recovery effort.
So now the democratic congress feels outrage over something that they voted for. Outrage directed at AIG and not at themselves for letting this happen. Obama is outraged and he signed the bill. It is no suprise that Obama, Dodd, and Frank were among the top receivers of AIG political contributions. Dodd's defense is that others forced him put the provision into the bill. But he is not giving names. Frank is demanding that AIG release the names of people who recieved bonuses, at risk to their welfare. Geithner is pleading ignorance, along with Obama. And everyone wants the money returned "to the tax payers." The money that the tax payers give to AIG will never be returned to the people. Congress has no shame when they lie to the people. They pretend to stand for the peoples rights, but all they worry about is money and elections. Dont let congress distract you from what is really important.
So now the democratic congress feels outrage over something that they voted for. Outrage directed at AIG and not at themselves for letting this happen. Obama is outraged and he signed the bill. It is no suprise that Obama, Dodd, and Frank were among the top receivers of AIG political contributions. Dodd's defense is that others forced him put the provision into the bill. But he is not giving names. Frank is demanding that AIG release the names of people who recieved bonuses, at risk to their welfare. Geithner is pleading ignorance, along with Obama. And everyone wants the money returned "to the tax payers." The money that the tax payers give to AIG will never be returned to the people. Congress has no shame when they lie to the people. They pretend to stand for the peoples rights, but all they worry about is money and elections. Dont let congress distract you from what is really important.
#2
03-19-2009, 01:50 PM
#3
03-19-2009, 02:37 PM
The whole thing smells.
The knee jerk reaction of Congress to tax the hell out of the bonuses - I don't like. If they pass it - what's stopping them from taxing bonuses some other way? Bonuses already get slammed at 40% straight off.
As for who's to blame? The initial $80 billion was done Sept 17th during the Bush administration - everyone had a hand - even Bush who signed it into action.
So pointing the finger only at President Obama is not an accurate call, mate. What I can say is now that he's the head guy, the heat from all this is on him now - Bush is out of the picture and AIG is going to be an issue that we, as taxpayers, now own 80% of.
The knee jerk reaction of Congress to tax the hell out of the bonuses - I don't like. If they pass it - what's stopping them from taxing bonuses some other way? Bonuses already get slammed at 40% straight off.
As for who's to blame? The initial $80 billion was done Sept 17th during the Bush administration - everyone had a hand - even Bush who signed it into action.
So pointing the finger only at President Obama is not an accurate call, mate. What I can say is now that he's the head guy, the heat from all this is on him now - Bush is out of the picture and AIG is going to be an issue that we, as taxpayers, now own 80% of.
#4
03-19-2009, 03:11 PM
Increasing the tax rate to 90% is, by most estimates, unconstitutional since it singles out a very small group of people under the law.
I dont doubt that Bush initiated the rescue of AIG. I am simply pointing out the fact that either 1) Obama is lying and he knew that these bonuses were coming, or 2) He signed the stimulus bill withoput understanding what exactly was in it
It was Obama's plan from the very begining to pass the stimulus before some predetermined date. It was also his plan to give the public 4 days to read the bill before it was voted on. He talked down the economy the whole time to get his agenda rushed through congress. Now that the bills have passed, he has changed his tone. He also critisized the republicans for being the party of "no", when in fact many republicans just wanted more time to read the stimulus to prevent mistakes like this from happening.
The Obama administration is acting like it is AIGs fault for honoring their contracts when it was the democratic congress that protected the bonuses in the stimulus bill.
I dont doubt that Bush initiated the rescue of AIG. I am simply pointing out the fact that either 1) Obama is lying and he knew that these bonuses were coming, or 2) He signed the stimulus bill withoput understanding what exactly was in it
It was Obama's plan from the very begining to pass the stimulus before some predetermined date. It was also his plan to give the public 4 days to read the bill before it was voted on. He talked down the economy the whole time to get his agenda rushed through congress. Now that the bills have passed, he has changed his tone. He also critisized the republicans for being the party of "no", when in fact many republicans just wanted more time to read the stimulus to prevent mistakes like this from happening.
The Obama administration is acting like it is AIGs fault for honoring their contracts when it was the democratic congress that protected the bonuses in the stimulus bill.
#5
03-19-2009, 03:21 PM
Honestly, I'd like to know what happened to the initial $700 billion that Bernanke proposed and everyone pushed through to "save" the banks.
Everyone here is to blame, mate. No one was manning the station when this train wreck began to gain steam. So to point fingers at those that now man the helm is rather pointless. I just hope that Obama holds true to his word that the buck stops with him.
As for the taxation - that's untrue. Show me where bonuses are a constitutional right? As for it being a small portion - perhaps - but bonuses get handed down all over the country (even I get them). But here's the rub - taxation without representation was the key cry from founding fathers thus causing the infamous Boston Tea Party.
But it is now our "representatives" in both houses of Congress that's up to this new round of Don Quixote political shenanigans that has me concerned.
Everyone here is to blame, mate. No one was manning the station when this train wreck began to gain steam. So to point fingers at those that now man the helm is rather pointless. I just hope that Obama holds true to his word that the buck stops with him.
As for the taxation - that's untrue. Show me where bonuses are a constitutional right? As for it being a small portion - perhaps - but bonuses get handed down all over the country (even I get them). But here's the rub - taxation without representation was the key cry from founding fathers thus causing the infamous Boston Tea Party.
But it is now our "representatives" in both houses of Congress that's up to this new round of Don Quixote political shenanigans that has me concerned.
#6
03-19-2009, 03:40 PM
Man, who needs a million dollar bonus anyways!? All of washington has put a sour taste in my mouth these last few months. I just hope that Obama can get a grip on whats going on with congress and these companies. Politics gives me a headache...
#7
03-19-2009, 03:53 PM
Seems they just passed the 90% tax on bonuses - if you're company has received any bailout money.
Let's hope the rule stays that way and doesn't expand any further...
Let's hope the rule stays that way and doesn't expand any further...
#8
03-19-2009, 04:27 PM
I do not support the 90% tax and do beleive it infringes upon the intentions of the constitution. Some of these companies were forced to take bailout money and now, after the fact, they may be forced to give their bonuses to the government. I dont know the details of the bill so I cant really comment to much on the subject.
I am not blaming the Obama administration for the bailout. But when he sold the stimulus bill to the American people, he was basically signing off on these bonuses. You cant sell people crap, then be shocked about the smell.
I am not blaming the Obama administration for the bailout. But when he sold the stimulus bill to the American people, he was basically signing off on these bonuses. You cant sell people crap, then be shocked about the smell.
#9
03-19-2009, 04:57 PM