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Thread: Obama tries to stop AIG bonuses: 'How do they justify this outrage?'

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    Obama tries to stop AIG bonuses: 'How do they justify this outrage?'

    Obama tries to stop AIG bonuses: 'How do they justify this outrage?' - CNN.com

    " WASHINGTON (CNN) -- President Obama said Monday he will attempt to block bonuses to executives at ailing insurance giant AIG, payments he described as an "outrage."
    President Obama says AIG "finds itself in financial distress due to recklessness and greed."

    "This is a corporation that finds itself in financial distress due to recklessness and greed," Obama told politicians and reporters in the Roosevelt Room of the White House, where he and Treasury Secretary Tim Geithner were unveiling a package to aid the nation's small businesses.

    The president expressed dismay and anger over the bonuses to executives at AIG, which has received $173 billion in U.S. government bailouts over the past six months."


    I like this move.
    "I do not underestimate the ability of fanatical groups of terrorists to kill and destroy, but they do not threaten the life of the nation. Whether we would survive Hitler hung in the balance, but there is no doubt that we shall survive al-Qa'ida." -- Lord Hoffmann

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    Re: Obama tries to stop AIG bonuses: 'How do they justify this outrage?'

    Well, for starters, the amount of money they're spending on those bonuses is less than two-tenths of a percent of the money they've received in bailout money. Let's keep that in perspective.

    And, more importantly, those bonuses are monies that AIG is contractually obligated to pay out. Attempting to not pay those bonuses would cost them more money, as they would have to pay for lawyers, and court costs, and then interest after being forced to pay the bonuses.

    There's really nothing that they can, or should, do to prevent this.

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    Re: Obama tries to stop AIG bonuses: 'How do they justify this outrage?'

    Quote Originally Posted by Korimyr the Rat View Post
    Well, for starters, the amount of money they're spending on those bonuses is less than two-tenths of a percent of the money they've received in bailout money. Let's keep that in perspective.

    And, more importantly, those bonuses are monies that AIG is contractually obligated to pay out. Attempting to not pay those bonuses would cost them more money, as they would have to pay for lawyers, and court costs, and then interest after being forced to pay the bonuses.

    There's really nothing that they can, or should, do to prevent this.
    Let's not also forget that they may have been hired to reduce the loss the company had projected.

    If the company had projected a 1.1 billion dollar loss and the new executives reduced that to less than 1 billion would they not deserve the bonus?
    I was discovering that life just simply isn't fair and bask in the unsung glory of knowing that each obstacle overcome along the way only adds to the satisfaction in the end. Nothing great, after all, was ever accomplished by anyone sulking in his or her misery.
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    Re: Obama tries to stop AIG bonuses: 'How do they justify this outrage?'

    Arch Enemy
    You are not as naive as you appear to be.
    Obama is a LAWYER, he knows that the Law when applied to a Legally drawn up contract, has to be observed in its entirety.

    When he spouts such as he is reported to have done, all he is doing is attempting to move blame for the inadequacies of both himself and his own administration.
    The Prime rule when ever any monies are to be loaned to any Company is to look at the books of that Company.
    It is patently obvious that neither Obama (who does not either have the time or the experience) nor anyone in his administration did what is called 'Due diligence'.
    Had they done so, it would have been apparent to them that a Contract that committed AIG legally to pay these Bonus's to their various executives existed.

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    Re: Obama tries to stop AIG bonuses: 'How do they justify this outrage?'

    Quote Originally Posted by Arch Enemy View Post
    Obama tries to stop AIG bonuses: 'How do they justify this outrage?' - CNN.com

    " WASHINGTON (CNN) -- President Obama said Monday he will attempt to block bonuses to executives at ailing insurance giant AIG, payments he described as an "outrage."
    President Obama says AIG "finds itself in financial distress due to recklessness and greed."

    "This is a corporation that finds itself in financial distress due to recklessness and greed," Obama told politicians and reporters in the Roosevelt Room of the White House, where he and Treasury Secretary Tim Geithner were unveiling a package to aid the nation's small businesses.

    The president expressed dismay and anger over the bonuses to executives at AIG, which has received $173 billion in U.S. government bailouts over the past six months."


    I like this move.
    Smoke and mirrors.
    Even CNN noted and quoted they can do nothing.
    AIG employees have contracts. Obama knew this long ago.
    Doing what Obama says he wants to do is pure smoke.

    That type of BS is reckless.
    His administration has been greedy.
    Using a climate of angst to aggressively expand government.

    Government shouldn't be telling a private business what to do.
    Government money or not.

    Unless they want to create a government board of Directors.

    165 million compared to 2 trillion.
    Freddie and Fannie. Dodd, Frank, Waters...

    This is all about nothing.

    The real thieves are in DC acting like victims.

    What Bull****... but the people eat it up.

    .
    Last edited by zimmer; 03-17-09 at 04:53 AM.
    The Clintons are what happens...
    when you have NO MORAL COMPASS.

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    Re: Obama tries to stop AIG bonuses: 'How do they justify this outrage?'

    Quote Originally Posted by Korimyr the Rat View Post
    Well, for starters, the amount of money they're spending on those bonuses is less than two-tenths of a percent of the money they've received in bailout money. Let's keep that in perspective.

    And, more importantly, those bonuses are monies that AIG is contractually obligated to pay out. Attempting to not pay those bonuses would cost them more money, as they would have to pay for lawyers, and court costs, and then interest after being forced to pay the bonuses.

    There's really nothing that they can, or should, do to prevent this.
    And in a practical sense, another thing that people fail to recognize is that in most cases, executive compensation is going to continue on whether they like it or not. There is an entire practice of law revolving around coming up with ways to compensate executives that get around regulations. Stock options, backdating, deferred compensation, etc.

    If this demonization of bonuses continues, we're just going to see Wall St shift away from more flexible bonus-based compensation to less flexible salary-based compensation. That's not a good thing.
    People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf.

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    Re: Obama tries to stop AIG bonuses: 'How do they justify this outrage?'

    Quote Originally Posted by RightinNYC View Post
    And in a practical sense, another thing that people fail to recognize is that in most cases, executive compensation is going to continue on whether they like it or not.
    Yep. And they're going to go right on convincing people who work for a living that these executives are somehow worth 1,000 times what they are, that asking them to pay more than ten percent of their income in taxes ain't fair, and that these exorbitant compensation packages are necessary to promote innovation.

    Some days, I swear the only way that politics makes sense to me is if I start from the theory that they've been putting lead in our beer since the day they repealed Prohibition.

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    Re: Obama tries to stop AIG bonuses: 'How do they justify this outrage?'

    Well I think it is hard for people to understand (me including) that in the US it is fully legal as a company to dump your pension obligations to your employees, but it is not fully legal to do the same with bonuses (in a time of crisis of course). Both are contracts after all.

    But yea in the big picture this is peanuts. Now what Obama could do, is say okay take your bonus money, but then you are fired for under preforming
    PeteEU

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    Re: Obama tries to stop AIG bonuses: 'How do they justify this outrage?'

    Quote Originally Posted by PeteEU View Post
    But yea in the big picture this is peanuts. Now what Obama could do, is say okay take your bonus money, but then you are fired for under preforming
    Do you mean Congress gets fired?
    They begged for TARP.
    Said it needed to be implemented to save the world... RIGHT NOW!
    No waiting.
    They made the deal.
    They cut the contracts.

    Will Obama scold Congress?
    LOL.
    The Clintons are what happens...
    when you have NO MORAL COMPASS.

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    Re: Obama tries to stop AIG bonuses: 'How do they justify this outrage?'

    Quote Originally Posted by zimmer View Post
    Do you mean Congress gets fired?
    They begged for TARP.
    Said it needed to be implemented to save the world... RIGHT NOW!
    No waiting.
    They made the deal.
    They cut the contracts.

    Will Obama scold Congress?
    LOL.
    And you do know the consequences for AIG going down right? That has figured into your partisan attacks right? You do know that most of the AIG bailout money has gone to pay off insurance that banks took out in AIG.. insurance taken out against the very assets in US homes that now are toxic?

    And you do remember that TARP was under the Republican administration right, promoted and put together by the Bush administration, a conservative right wing administration. Yea yea, I know they are not "real conservatives"... rats fleeing the sinking ship syndrome.. now we are libertarians and not conservatives..bla bla bla bs.

    And you do remember who and what created the whole mess right?

    I know your hatred for Obama and the Democrats is near fanatical state, but your "side" are just as much if not more to blame for the situation the US and world are in today. It is the right, the conservative/libertarian side of the political spectrum in the US that was at the forefront of the deregulation movement that in turn lead to this melt down.

    AIG got into trouble, thanks to legislation put in place and promoted by high ranking former and present Republicans, that allowed the whole derivative trading to explode. Thanks to Graham and his friends and the help of Clinton, AIG was allowed to not only trade in derivatives but to insure most of the banking world's own trading in mortgages that anyone with half a brain could see were not viable in a downward turning market. That is why AIG is in trouble.... it is Congress, AIG, Mortage lenders and lastly but not least, the American citizen.

    And like it or not, AIG does have a contract with these workers, and there is most likely not much anyone can do other than fire their asses. Which in turn brings up the hypocrisy of the US business world. You are an auto worker, kiss your pension goodbye... you are in AIG, BOA or other big financial institutions and nooo you cant touch our multi million dollar bonus or golden parachute.
    PeteEU

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