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US Treasury to reclaim AIG cash

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jujuman13

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BBC NEWS | Business | US Treasury to reclaim AIG cash

This would be almost laughable if it were not so serious.

The Obama administration is now saying they will deduct the amount paid in Bonus's from the amount AIG is to get from the US Obama Administration in the next bout of bail out.

And they call insane people 'Crazy'?:rofl:spin::confused:
 
This is starting to piss me off. Why do they keep giving them handouts without getting anything in return? Even some Republicans are starting to make noise about nationalizing companies like AIG. So when are Obama and Geithner going to grow some balls and do what needs to be done?
 
What I love is the feigned outrage by Obama and politicians. As if they didn't know. :roll:

"These bonuses are just shocking..." yeah right.

Whatever the government shouldn't be taking over AIG. I'd rather they fail then be nationalized.
 
All they need to do is act like regular private investors. If a venture capitalist sunk a ton of money into a firm and then it ran catastrophically into the red, he'd demand for the exec's heads on a plate.
 
talloulou said:
What I love is the feigned outrage by Obama and politicians. As if they didn't know. :roll:

"These bonuses are just shocking..." yeah right.

Whatever the government shouldn't be taking over AIG. I'd rather they fail then be nationalized.
Click to expand...

If they are nationalized, then all of the institutions to whom they owe money (including many banks already being propped up by the government or teetering on the brink of bankruptcy) would have those accounts receivable completely wiped out.

This, in turn, would cause many of them to go belly-up (unless the government bailed THEM out again...but I assume you don't want that). Then all of the institutions to whom THEY owe money would have those accounts receivable completely wiped out. Wash, rinse, repeat.

Our financial system is far too complex and interdependent to handle a major blow like this. If major institutions like AIG go under, it could very plausibly create a financial tsunami that could literally bankrupt the entire world. Think of the aftermath from Lehman Brothers going under...and Lehman was a lot smaller than AIG.
 
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Imagine if you were due a bonus from a contractual agreement and the government stepped in, took over the company you worked for, called you a bunch of names and threatened to take your bonus away.

On top of that imagine if the government knew all about the bonuses you were due and then feigned shock and surprise as if they were utterly flabbergasted.

Jezus.
 
Kandahar said:
If they are nationalized, then all of the institutions to whom they owe money (including many banks already being propped up by the government or teetering on the brink of bankruptcy) would have those accounts receivable completely wiped out.

This, in turn, would cause many of them to go belly-up (unless the government bailed THEM out again...but I assume you don't want that). Then all of the institutions to whom THEY owe money would have those accounts receivable completely wiped out. Wash, rinse, repeat.

Our financial system is far too complex and interdependent to handle a major blow like this. If major institutions like AIG go under, it could very plausibly create a financial tsunami that could literally bankrupt the entire world.
Click to expand...

I agree, which makes the ludicrous stupidity of AIG's decision to behave so flagrantly all the more repulsive. They're literally risking the world's financial system because they can't imagine the possibility that they don't get piles of money.

This is what needs to happen: send some black helicopters to land on these assholes lawns in the middle of the night, hood them, fly them to an undisclosed location and have a smoking man behind a bright light tell them that they'll be ****ING KILLED if they continue this ****.
 
talloulou said:
Imagine if you were due a bonus from a contractual agreement and the government stepped in, took over the company you worked for, called you a bunch of names and threatened to take your bonus away.

On top of that imagine if the government knew all about the bonuses you were due and then feigned shock and surprise as if they were utterly flabbergasted.

Jezus.
Click to expand...

If the government HADN'T stepped in, AIG would have gone bankrupt and those employees most certainly wouldn't have gotten any bonuses at all. I'm sorry if protecting their bonuses are not my top concern.
 
new coup for you said:
I agree, which makes the ludicrous stupidity of AIG's decision to behave so flagrantly all the more repulsive. They're literally risking the world's financial system because they can't imagine the possibility that they don't get piles of money.

This is what needs to happen: send some black helicopters to land on these assholes lawns in the middle of the night, hood them, fly them to an undisclosed location and have a smoking man behind a bright light tell them that they'll be ****ING KILLED if they continue this ****.
Click to expand...

Wasn't the onus on the government to stipulate "no bonuses" before agreeing to bail them out? Rather than act surprised and pretend to go nuts when the public caught wind of it?
 
AIG was doing great until the CEO was forced out by spitzer in 2005 to be replaced with Spitzer's friend. **** went downhill from there.
 
Kandahar said:
If the government HADN'T stepped in, AIG would have gone bankrupt and those employees most certainly wouldn't have gotten any bonuses at all. I'm sorry if protecting their bonuses are not my top concern.
Click to expand...

But the government didn't allow them to go bankrupt. Instead they stepped in and kept them afloat. If the company you work for owes you money, doesn't go out of business, then they need to pay you what was contractual agreed upon under the conditions of your employment. They can't just say, "Look you asshole you have tons of money and the villagers are going ape-**** over it so we're no longer honoring our contract."
 
If the bonuses were due to poor people nobody would say boo about it. In fact there would be outrage if the government took contractually agreed upon bonuses away from some poor people. The rich are just so hated.
 
talloulou said:
If the bonuses were due to poor people nobody would say boo about it. In fact there would be outrage if the government took contractually agreed upon bonuses away from some poor people. The rich are just so hated.
Click to expand...

That's a bit simplistic. I haven't heard one person express outrage that the already rich engineers over at Intel are getting richer because of their yearly bonus. The rich people at AIG who are getting a whole lot richer while making the rest of the nation a whole lot poorer, though, are indeed hated.

Still, this wave of popular justice is just plain silly
 
jujuman13 said:
Link
BBC NEWS | Business | US Treasury to reclaim AIG cash

This would be almost laughable if it were not so serious.

The Obama administration is now saying they will deduct the amount paid in Bonus's from the amount AIG is to get from the US Obama Administration in the next bout of bail out.

And they call insane people 'Crazy'?:rofl:spin::confused:
Click to expand...

K, sounds good to me, so now they'll quit bitching about bonuses right?
 
Uhm sorry Geitner you have to re-negotiate the Contract in order to do that.



"We will impose on AIG a contractual commitment to pay the Treasury from the operations of the company the amount of the retention awards just paid," Mr Geithner's letter said.

"In addition, we will deduct from the $30bn in assistance an amount equal to the amount of those payments."
Click to expand...

That is worse then the issue at hand. Its also illegal.
When you sign a contract you expect it to be upheld and legally binding..Not something one party can simply disregard.
Pretty sure it also would be unconstitutional.



And Senate Democrats wrote to AIG Chief Executive Edward Liddy on Tuesday calling on him to hand over the bonuses.

"If these contracts are not renegotiated immediately, we will take action to make American taxpayers whole by recouping all of the bonuses that AIG has paid out to its financial products unit," the letter stated.
Click to expand...

That is realistic. Because they can do such without ignoring the contracts already in effect. Even if its as simple as a cheesey new never before seen fine its not breaking the contract.


Someone will probably argue both the quotes say the same thing..they don't.
Key words are "Impose" and "Negotiate".


...

The BBC's James Coomarasamy, in Washington, says these are uncomfortable times for Mr Obama.

The president is trying to channel public anger over the bonuses without becoming the object of that anger himself, our correspondent says.
Click to expand...

He is correct. But while "channeling" Obama is being caught in BS.
Its almost become two issues now.
1. The AIG situation.
2. Obama, Geitner, etc lying for all intents.



I think Geitner is just blowing smoke and trying to continue using the subject to do what is remarked upon in the 3rd quote.
 
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These "executives" whom created the fraud should be jailed.
When you claim to have something you don't have and then sell it to a consumer, that's called fraud. I'm surprised the gov isn't persuing criminal charges on AIG employees.
 
Kernel Sanders said:
That's a bit simplistic. I haven't heard one person express outrage that the already rich engineers over at Intel are getting richer because of their yearly bonus. The rich people at AIG who are getting a whole lot richer while making the rest of the nation a whole lot poorer, though, are indeed hated.

Still, this wave of popular justice is just plain silly
Click to expand...
Intel isn't receiving governmental bailouts.
 
jfuh said:
These "executives" whom created the fraud should be jailed.
Click to expand...
You're right, but you think the House and Congress will impeach them? I don't.

jfuh said:
When you claim to have something you don't have and then sell it to a consumer, that's called fraud.
Click to expand...
WOAH Jfuh went right wing???

jfuh said:
I'm surprised the gov isn't persuing criminal charges on AIG employees.
Click to expand...
Oh... you were taking the talking points and talking about AIG....
 
talloulou said:
If the bonuses were due to poor people nobody would say boo about it. In fact there would be outrage if the government took contractually agreed upon bonuses away from some poor people. The rich are just so hated.
Click to expand...

Maybe if the "rich" did the responsible thing, they wouldn't be so "hated".



United Auto Workers President Ron Gettelfinger said Wednesday the union will give up job protections and rework a retiree health-care trust in concessions aimed at helping automakers clinch billions in government loans to weather a severe downturn.
[...]
Gettelfinger told reporters in a news conference that the steps were the "responsible thing to do" and the union was currently engaged in discussions with the automakers to revise the contracts.

United Auto Workers Open To Contract Changes : NPR
Click to expand...
 
jujuman13 said:
Link
BBC NEWS | Business | US Treasury to reclaim AIG cash

This would be almost laughable if it were not so serious.

The Obama administration is now saying they will deduct the amount paid in Bonus's from the amount AIG is to get from the US Obama Administration in the next bout of bail out.

And they call insane people 'Crazy'?:rofl:spin::confused:
Click to expand...



So to show them, we are going to give them yet another bailout??????



:shock:


What an idiot.
 
BWG said:
Maybe if the "rich" did the responsible thing, they wouldn't be so "hated".
Click to expand...

I just think folks would be better off targeting their anger where it belongs rather than allowing themselves to be led. This bailout is absolutely INSANE. Who is responsible for that? This AIG bonus crap is nothing compared to the insanity of the bailout in general. Also, if you can't believe that AIG used the monies for bailouts should you be mad at AIG who stipulated they would do so before the bailout or mad at Obama and every single other supporter of the bailout who didn't give a crap about the bonuses till the rest of us tards got wind of it? And now they go on tv and PRETEND to be all outraged and all you people get all riled up at AIG.

AIG is not who I'm mad at. There are maddening things about the whole AIG business for sure. But it is our government that positively disgusts and scares the **** out of me. Anybody who voted for this bailout who is now parading around on tv acting like they can't believe this AIG nonsense is either a god damn liar or an absolute complete dumbass who has no business representing is.
 
Kandahar said:
If they are nationalized, then all of the institutions to whom they owe money (including many banks already being propped up by the government or teetering on the brink of bankruptcy) would have those accounts receivable completely wiped out.

This, in turn, would cause many of them to go belly-up (unless the government bailed THEM out again...but I assume you don't want that). Then all of the institutions to whom THEY owe money would have those accounts receivable completely wiped out. Wash, rinse, repeat.

Our financial system is far too complex and interdependent to handle a major blow like this. If major institutions like AIG go under, it could very plausibly create a financial tsunami that could literally bankrupt the entire world. Think of the aftermath from Lehman Brothers going under...and Lehman was a lot smaller than AIG.
Click to expand...

Sorry, I meant "If they are allowed to go bankrupt." Nationalization is the only logical course of action for AIG.
 
talloulou said:
What I love is the feigned outrage by Obama and politicians. As if they didn't know. :roll:

"These bonuses are just shocking..." yeah right.

Whatever the government shouldn't be taking over AIG. I'd rather they fail then be nationalized.
Click to expand...

Yes, thats a wonderful idea. From the WSJ:

The impact on Wall Street could be significant, as many financial institutions in the U.S., Europe and Asia bought credit default swaps from AIG tied to corporate debt and mortgage securities. These firms are counting on AIG to compensate them if the underlying assets default or decline in value. If AIG itself defaults or has trouble meeting its obligations, those market players may have to take write-downs or losses
Click to expand...

Crisis on Wall Street : Questions and Answers on AIG

Do you understand the economic implications if this were to happen? We cannot let them fail.
 
SouthernDemocrat said:
Yes, thats a wonderful idea. From the WSJ:



Crisis on Wall Street : Questions and Answers on AIG

Do you understand the economic implications if this were to happen? We cannot let them fail.
Click to expand...

You're missing the point entirely.

If it's decided that they need to be loaned the money, fine.

When politicians drum up a bunch of hype because 0.01% of the loaned money is going to contractual payroll, clearly we can see that this is nothing more than a class envy stunt.

Divide and concur.
 
IMO the entire problem boils down to a lack of due diligence by Geithner while he was heading up the NY Federal Reserve.
It was they that gave AIG the initial bail out.
He should have had his staff run due diligence.
Certainly he should take responsibility for the lack of due diligence being carried out.
Had due diligence been carried out they should have discovered that retention Bonus's were due to be paid.

It is to be hoped that those responsible for the Financial melt down within AIG FB Division are investigated and where fraud is found and can be proven to have taken place for them to be prosecuted.

Whether this will occur is questionable.
And now I read that both Fanny Mae as well as Feddy mac are going the same way with retention bonus's.
But folks you do need to remember one phrase
"Change we CAN believe in"
Yeah right.
 
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