There is much ado over the recent news that AIG, the company which is now synonymous with the words “government bailout,” is going ahead with their contractual obligation to pay out tens of millions in bonuses to top executives.
While I will join the chorus condemning AIG for their terrible business practices and abuse of public money, I will also accuse the government of the exact same things.
A little on the story from Fox News:
President Obama’s economic advisers expressed outrage and anger Sunday over revelations that bailed-out insurance giant American International Group was going ahead with plans to pay executives tens of millions of dollars in new bonuses.
“I don’t know why they would follow a policy that’s really not sensible. It’s obviously going to ignite the ire of millions of people,” Austan Goolsbee, of the White House Council of Economic Advisers, told “FOX News Sunday.”
“It is outrageous,” chief economic adviser Larry Summers told ABC’s “This Week.”
Summers said these kinds of bonus payments should be a matter of future regulations.
AIG has gotten more than $170 billion in a public bailout. Just this month, the company reported a loss of $61.7 billion for the fourth quarter of last year — the largest corporate loss in history.
But AIG’s chairman said the company entered into the bonus agreements in early 2008 before getting into severe financial trouble. Summers said the government determined it could not break those contracts after the fact.
I am more angry at these fools in Washington who are still wasting our money and never should have bailed out AIG in the first place. It’s like bailing out a fox with chickens and then being upset the fox ate a chicken. Everyone knew it would happen but the government did it anyway.
What’s more infuriating to me is the list of incompetent government leaders chiding AIG while they try to pretend their guiltless in the issue:
Treasury Secretary Timothy Geithner was “really upset” by the pay-outs and “berated” representatives from AIG after hearing about the plans.
Obama advisers weren’t the only ones unleashing on AIG over the weekend.
Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, told “FOX News Sunday” that AIG was “abusing the system” and the government needs to find out what payments are “legally recoverable.”
Frank said it’s “inappropriate” for those behind the bonuses to “stay in power” at AIG.
Geithner has been a failure and is still running around with no plan other than to waste taxpayer money. He purposely didn’t pay thousands in taxes yet he now makes sure yours are collected on time. He should have been scrapped months ago.
Barney Frank should have resigned his position in disgrace for his role in the Fannie/Freddie mortgage collapse. He’s a self-righteous arrogant politician who typifies the absolute worst in Washington. In his eyes he does no wrong and has nothing but indignation for anyone who questions him.
However, these people feel they have the moral authority to lecture someone else on how they spend money. Perhaps you should pull the plank out of your own eye, Geithner and Frank, before you worry about the toothpick in someone else’s.
See, AIG isn’t entrusted to protect our money like these Washington politicians are which is why I blame them more than AIG. AIG never should have had the chance to be wasting taxpayer money. Furthermore, AIG can’t waste more of our money but the Obama administration sure can, and will.
Either way We The People are getting hosed when incompetent government officials who wasted our money to begin with start chiding an incompetent business who continues to waste our money.
All this and yet Obama continues entertaining more bailouts and stimulus packages. Sounds like a plan doomed for failure. Oh wait, it already has been a failure so never mind.
Blame Connecticut Senator Chris Dodd if you want to blame anyone.
Fox Business reports:
Senator Chris Dodd (D-Conn.) on Monday night floated the idea of taxing American International Group bonus recipients so the government could recoup some or all of the $450 million the company is paying to employees in its financial products unit. Within hours, the idea spread to both houses of Congress, with lawmakers proposing an AIG bonus tax.
The move represents somewhat of an about-face for the Senator.
While the Senate was constructing the $787 billion stimulus last month, Dodd added an executive-compensation restriction to the bill. That amendment provides an “exception for contractually obligated bonuses agreed on before Feb. 11, 2009” — which exempts the very AIG bonuses Dodd and others are now seeking to tax.
The amendment made it into the final version of the bill, and is law.
Separately, Sen. Dodd was AIG’s largest single recipient of campaign donations during the 2008 election cycle with $103,100, according to opensecrets.org.
Dodd’s office did not immediately return a request for comment.
One of AIG Financial Products’ largest offices is based in Connecticut.
So Dodd went out of his way to protect the very AIG bonuses in question today.
Once again, I will reiterate. These are government fools like Chris Dodd who are now mad that they personally screwed up and mis-spent our taxpayer dollars.
Feel free to contact Sen. Dodd, among others, and let him know how incompetent he is with our money. Remember, Dodd is another name who holds a lot of responsibility for the original Fannie/Freddie mortgage mess.
Isn’t it amazing that there is selective outrage over this issue only now. Dodd went out of his way to protect these bonuses back then and didn’t have an issue with it. Now he has righteous indignation for the bonuses he personally protected. This is the CHANGE you can believe in!
Speaking of Sen. Dodd, he seems to have a bit of a problem developing in keeping his senate seat in 2010. Perhaps he will be a short term problem for taxpayers after all. One can only “hope” for a “change”.
WASHINGTON (CNN) – The National Republican Senatorial Committee is celebrating St. Patrick’s Day at Christopher Dodd’s expense.
With a new Web ad out Tuesday — just one day after a prominent Connecticut Republican announced he will try to unseat Dodd in 2010 — the NRSC is hoping to further weaken the vulnerable Senate Democrat, who is of Irish descent.
Entitled “The Luck O’ The Dodd,” the animated video claims Dodd has lost touch with his constituents, in part because he owns a home in Ireland and moved to Iowa in 2007 during his failed presidential bid.
“Connecticut must not be good enough for the ol’ lad,” the video’s narrator says in an Irish lilt. “The whole Dodd clan even moved to Iowa. Home sweet home! But not as sweet as his sweetheart mortgage deal from his friend Angelo Mozilo! How lucky!”
Dodd, the chairman of the Senate Finance Committee, has seen his approval ratings tumble over the last year, thanks in part to a pair of mortgages he obtained from embattled mortgage lender Countrywide Financial, which is chaired by Mozilo.
A February Quinnipiac poll indicated that only 41 percent of Connecticut voters approve of the way Dodd is handling his job, with 48 percent disapproving.
The ad says Dodd’s poll numbers “are bottoming out like a pint of Guinness.”