news Millions in AIG bonuses fuel political storm

**rwilli1** · #1 03-15-2009

Millions in AIG bonuses fuel political storm

1 hour, 28 minutes ago

WASHINGTON (AFP) - President Barack Obama's top economic adviser Sunday blasted "outrageous" conduct at AIG as the bailed-out insurance giant readied to hand out millions in bonuses to top executives.

Lawrence Summers, director of the White House's National Economic Council, said the Obama administration had "scaled back" the bonuses but said its hands were tied by contract law in how far it can go.
"There are a lot of terrible things that have happened in the last 18 months, but what's happened at AIG is the most outrageous, what that company did," he said on ABC program "This Week."
But Summers added: "We are a country of law. There are contracts. The government cannot just abrogate contracts.
"Every legal step possible to limit those bonuses is being taken by (Treasury) Secretary (Timothy) Geithner and by the Federal Reserve system. And they have, as a result of Secretary Geithner's efforts, been scaled back."
The Wall Street Journal said Sunday that AIG boss Edward Liddy was planning to shell out 450 million dollars to executives at a London-based financial products division blamed for the company's fall from grace.
Liddy has reportedly told Geithner that the bonuses cannot be cancelled due to a risk of lawsuits for breach of employment contracts, and that AIG risks an exodus of senior employees if it does not pay out bonuses.
Summers appeared to lend some credence to that argument.
He said "there is one other reality we have to recognize, which is that these companies have to be enabled to function, if the government is going to maximize the prospect of getting its money back."
Massive losses at the division in London have forced the US government to pump some 150 billion dollars into crippled AIG, and it is planning another emergency injection of 30 billion dollars.
Condemnation of the planned bonuses came from both sides of the political aisle.
"It is an outrageous situation," Senate Republican leader Mitch McConnell said on the ABC show, while accusing the Obama administration of dodging its own culpability.
"And for them to simply sit there and blame it on the previous administration or claim contract -- we all know that contracts are valid in this country. But they need to be looked at," he said.

**samson** · #2 03-16-2009

Insurance companies---you gotta love them! They are the single most corrupt organization in the history of the World. They make the Cosa Nostra, Mafia, big city gangs and terrorists look like rank amateurs. Have you ever seen a small insurance building struggling to make ends meet? Anywhere? I doubt it. They are no less than legal thieves--legal only because they have the money to lobby our elected officials into passing their own laws with the accompanying loopholes. Ask those in New Orleans and the like, nevermind those of us that pay & pay as a result of their collusion and when we, the peons, have any claim--enter the loophole or worse we are threatened the claim will 'GO ON OUR RECORD" and we`ll pay for that claim 10X over it`s amount. The worst part of this is that we have to have it to drive a car(or anything for that matter), own a house(or anything for that matter) etc. etc. etc.---This is the law--This is also collusion at it`s best. So why are we surprised when AIG gives our tax $$ (bailout) to it`s execs---we`ve all seen 20/20 and the like running their exposes on all insurance companies---who got the big raises? the agents, doctors etc who DENY claims. Denying claims and charging astronomical rates are what built their skyscrapers, gave them 7 figure paychecks and unlimited expense accounts---all on us !! But that`s not good enough----now they want our tax dollars too. Negotiated raises my ass---they make an idiot like Madoff look like a rank amateur and an old fool for getting caught. Greed begets greed and until we as the rank can pay our politicians the lobby that the insurance companies can---bend over and enjoy the ride. JMO------ I`m tired.

**samson** · #3 03-17-2009

And yet more political bull-**** stuffed into the gaping mouths of the American taxpayers by our great no-bull, the buck stops here politicians. NOW the great new idea that Obama has is to tax the crap out of these "bonuses" if all else fails to recoup some of our money that HE gave them and save himself some face. Good idea, you say? Let`s say he can tax them 90% for the he**of it. GREAT IDEA, you say? Well it would be if most of these "bonuses" were handed out to those in the U.S.. Truth is that most of them were handed out overseas, almost 70% to be exact---AIG is nobody`s fool. How you gonna tax them Obama? Answer--you can`t. So when he taxes the crap out of these bonuses ignore the percentages, see if they publish the actual $$ amounts they recover against the amounts that slipped thru their fingers via non-taxable revenues that were immediately shipped overseas. Politicians trying to save face at our expense---more bull. JMO

**greenweed** · #4 03-18-2009

bro i feel the same as you!! even the profanity part! what can we do about it? every one would surly like to know! there going to get ya one way or another!!

**samson** · #5 03-18-2009

I knew you had to get in on this feces weed, sorry about the profanity, Ttoys already gave me feces, didn`t think it was used in that context. You`re right tho, we may all feel free to assume the position but it is going to be funny to see just how the politicians will try to yap their way out of this & make it look like they actually accomplished something. By the way AIG alone kicked over $100,000 to Obama`s campaign alone nevermind the others it greased along the way. Funny to see how many tough talkers in the senate right now jumping on the bandwagon of yet another fashionable issue. You gotta luv `em.

**greenweed** · #6 03-18-2009

no i will NEVER luv them!! i do think one way or another it will end!! and when it does there wont be any life on earth!! that is the ONLY way it will end. sad news but its the truth!

**samson** · #7 03-18-2009

so true my friend----greed begets greed--when one gets caught 2 replace him. Really quite sad statement for us humans-------------come on, comet.

**samson** · #8 03-18-2009

Yet on the lighter side of it---today is another day and I`m sure there will be yet another hilarious episode of Horsehockey Inc. bestowed on the public by Politicians & AIG. I`ll give them this ---they are entertaining when I`m not feeling up to par.

**samson** · #9 03-18-2009

Hey weed---if you`re around catch Ed Liddy (AIG CEO), he`s live this morn at Capitol Hill on HLN #202. Along with a full cast of politicians & an open mike this otta be a real assault on the senses. Let the finger pointing begin, just what I need while I`m nursing a sinus infection.

**samson** · #10 03-18-2009

If anyone is watching or following this appalling story you may want to check out Jeffrey Toobin (CNN legal analyst). Finally another great mind (besides mine)LOL . His idea, like mine, re the contract issues that surround these "bonuses" was for AIG to deny these said contractual bonuses and let the employee personally sue AIG on an individual basis. Being that AIG is supposedly almost bankrupt----what`s he going to get even if he wins his suit? Considering these executives great work performance they would never have dared going to court over any related issues. The name again was Jeffrey Toobin @ CNN, brilliant man.