Sunday, March 15, 2009

Taxpayer money going toward AIG bonuses

Bankers complained about mortgage relief for homeowners, but now we learn that AIG, which received $170 billion in federal bailout money intended on paying $165 million in bonuses and compensation to its officers.

Under government pressure, AIG said it would cut bonuses by at least 30 percent, but many in Washington are calling for legal action.

In a letter Sunday to Treasury Secretary Timothy Geithner, U.S. Sen. Russ Feingold called on the Obama administration to explore "legal options" to stop the payments.

"I write to ask why any bonuses would be legally required, given the company's abysmal performance," says Feingold, D-Wisconsin.

Rep. Barney Frank, D-Massachusetts, told Fox News that bailout recipients should follow stricter compensation rules, called on Congress to see if the payouts are "legally recoverable."

"We can't just violate legal obligations, I understand that," Frank said. "But I do want to find out at what point these legal obligations were incurred. Who said, and at what point, 'We're going to give these bonuses no matter what?' And I do think it's inappropriate for those people to stay in power at that company."

Widespread Backlash Over AIG Bonuses

ABC News - ‎44 minutes ago‎
By JOHN HENDREN The Obama administration had one word today for insurance giant AIG's plans to award senior executives hundreds of millions of dollars in bonuses and retention pay: "outrageous.

3 comments:

Steve said...

So apparently everyone's surprised? It's as if AIG asked "who can we make fools of?", and our Congress jumped up and raised their hands and said "pick me, pick me". Doesn't anyone think that a lot of this AIG debacle could have been avoided if anyone in Congress had thought to ask some questions, to do some homework, to lay down some stipulations? But no, as long as they're throwing money - ANYWHERE - Congress thinks they're doing their job.

Pro said...

AIG = Allowing Irreversible Greed.
AIG = All in Greed.
AIG = Arn't I Greedy.
AIG = A$#holes, in general.

This is sick. Why in the world are we helping these companies that keep sending millions to people who do not know how to run a company? They cry yet get paid millions on the "average joes" taxes. Furthermore, I fear this is just the tip of the iceberg. Look what Enterprise rent-a-car did to get bailout funds:

http://www.butasforme.com/2009/02/25/alert-enterprise-rent-a-car-may-have-fired-employees-as-fake-evidence-when-lobbing-for-bailout-money/

Not to make excuses for these people, but the bailouts are making crooks out of everyone that touches the money.

Anonymous said...

The bonus payout excesses at AIG are just the tip of the iceberg of what is happening with the other Wall Street bailouts including Bank of America. Working productive Americans are bailing out the same crooks that destroyed our economy along with 45% of the wealth in the world and now the American taxpayers and our children will be forced to live a far lower standard of living with reduced prosperity and opportunities due to this but only we pay the price.

Washington has bailed out the banks, Wall Street & their Washington special interests and much of the cost is added to the national debt to by paid by this and future generations while real estate and investments continue to fall. Find out what a growing repudiate the debt movement could mean for treasuries, the dollar, gold and the stock market and how this is a better alternative than Washington’s plans to monetize the debt in future years and tax and destroy our remaining wealth by depreciating the dollar.

The Campaign to Cancel the Washington National Debt By 12/21/2012 Constitutional Amendment is starting now in the U.S. See: http://www.facebook.com/group.php?gid=67594690498&ref=ts

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