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Item: Outcry builds in Washington for recovery of A.I.G. bonuses/New York Times
More Info: Senate Democratic leaders demanded on Tuesday that the insurance giant American International Group reverse the $165 million in bonuses that the firm had paid to executives after receiving more than $170 billion in bailout money. Alternatively, lawmakers said they would seek to reclaim the money by adopting new tax legislation.
Question: The Obama administration, Congress, and the Federal Reserve are trying to avoid blame for this ridiculous situation. Who do you hold to blame?
D.F. Oliveria is a columnist and blogger for The Spokesman-Review. Huckleberries Online was judged the best 2008 Idaho newspaper blog by the Idaho Press Club. And the best 2007 news blog in the Pacific Northwest by the Society for Professional Journalist. Print Huckleberries is a past winner of the Herb Caen Memorial Column contest by the National Association of Newspaper Columnists. The Readership Institute of Northwestern University cited this blog as a good example of online community journalism.
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Charlie on March 17 at 6:34 p.m.
All the above. Various news sources today indicated the bonus situation was know for almost 1 year ago. Sen. Dodd and Cong. Frank seem to be covering their butts. There is more than enough blame to go around, line up fellows, the beatings will soon begin. Fire the whole bunch.
hhuseland on March 17 at 6:52 p.m.
I would think that given the circumstances, AIG has shown an unusual amount of Chutzpah, in reeling in those federal dollars, then fattening the wallets of those that caused the emergency to begin with. I see blood in the streets over this. Anyone that high in a corporate hierarchy should have the smarts to lay low. It appears that arrogance is not dead, but I predict AIG is. These executives are going to sack up the money and run. I just hope for their sakes that they can run far enough and hide well enough to stay outside the reach of an angry scammed administration.
hmoffsuite on March 17 at 7:00 p.m.
Timmy Geithner, the Sec of the Treas.
sue on March 17 at 7:16 p.m.
It’s been fascinating to see the spotlight shine on this obscene type of compensation. I guess I’ve known about it in the past, but the financial situation we find ourselves in, has put it front and center. I wonder how much these enormous bonuses have been affecting us all along. How much more do we pay for our car, for our insurance, for our health care, because of these pornographically obscene payouts to the financial market? We’ve been subsidizing them all along through higher costs in everything we buy. Maybe this will be the turning point, where huge financial windfalls for the elite will be stopped, and we can all have a little more. Nobody deserves that kind of salary for moving money around. My guess is that Geitner knew of the bonuses, as did Bush, but didn’t blink an eye because it’s the norm in that arena. It’s good to see the outrage, and I hope it continues and grows and changes this type of corruption.
Escapee on March 17 at 8:13 p.m.
Corporate greed, all the way.
Sam_Crawford on March 17 at 8:40 p.m.
Wrote both my Senators and both my Representatives last night to let them know my dissatisfaction with these bonuses.
Wonder if it will do any good?
hmoffsuite on March 17 at 8:45 p.m.
If the AIG execs do get the bonuses, Schumer said this afternoon that they woulld manufacture a new tax in the congress and go get the money back that way. That is a scary thought if they think they can selectively tax and seize from citizens. More Obama administration at work.
LukeB on March 18 at 7:26 a.m.
Actually, I blame CEO overcompensation and bonuses on a lot of things - but I want to point out that if consumers were more informed and REFUSED to purchase products made by corporations who overpay their management and let these corporations know that this is affecting their purchasing decisions, then things would change.
Additionally, stronger unions would help balance the power held by upper management and boards.
Cabbage Boy on March 18 at 8:02 a.m.
I love it when Congress complains about Execs getting overpaid. This after they raise their own pay and benefits over and over. Shumer wants to tax the execs, how about taxing congressional pay too?
This is not to defend AIG, just pointing out the lunacy of the politicians complaining about overpayment.
toadman on March 18 at 8:09 a.m.
If I was President, I’d order the Marines to ransack the AIG building for all it’s goods, sell them on eBay, give the money to the people AIG screwed over, then raze the damn building to the ground.
Actually, I’d do that with several Wall Street Investment firms.
This is why I’m not president.
toadman on March 18 at 8:12 a.m.
hmo, you’ve lost me.. how in hell can you be partisan about this? This b.s. transcends partisanship. This is corporate greed, plain and simple. Trying to blame the Obama administration on this is insane. This is TARP money that was mis-used. TARP money that was put in place by the previous president.
toadman on March 18 at 8:15 a.m.
Surprisingly enough, I’m siding with Herb on this one. STOP THE PRESSES! cuz that’s freakin’ rare.
hmoffsuite on March 18 at 8:22 a.m.
toad >> This is TARP money that was mis-used. TARP money that was put in place by the previous president.
It was, toad, but supported strongly by the dems, if you recall. Most repubs voted against it. The architect of the deal was Geithner. I’m not blaming the Obama administration but they are involved just as much as the former administration.
toadman on March 18 at 8:28 a.m.
Look.. h, from where I sit, this isn’t Geithner’s fault. It’s not Obama’s fault. It’s not even Bush’s fault. It’s not even the Demo congress’ fault (though hypocritical in their outrage, as Cabbage points out, I admit.). The *idea* of the TARP bailout was a good idea…IMO. This is a failing of moral character on the part of AIG. This is the pinnacle of arrogance and greed on the part of corporate CEO’s who’ve been allowed to run roughshod over this country for way too long. To suggest anything else is a bit of a stretch, and smacks of blind partisanship.
hmoffsuite on March 18 at 8:37 a.m.
Toad. I can’t and won’t argue with you. The problem with AIG is AIG. No doubt about it.
JBelle on March 18 at 9:00 a.m.
AIG makes a sterling case for stepped regulation. sigh. Hard to completely understand what due diligence would prevent the feds from knowing these bonuses were pending and bona fide contractual obligations. I wish Toad would storm the building and loot the place. BTW, Manchester United as dropped AIG as a sponsor. JBelle likes this.
Cabbage Boy on March 18 at 9:27 a.m.
Seems Sen Dodd is the premier recipient of donations from AIG
http://michellemalkin.com/2009/03/17/chris-dodd-for-aig-bonuses-before-he-was-against-them/
Funny how he amended the Stimulus to exempt them
(“exception for contractually obligated bonuses agreed on before Feb. 11, 2009.”) and is now howling because they qualify for that exemption.
http://www.time.com/time/politics/article/0,8599,1885977,00.html?cnn=yes
Politicians can’t hardly contain themselves when dealing with a crisis. What a deal, get cash donations AND get to publicly condemn such horrible actions.