Tuesday, December 22, 2009, 6:49AM ET - U.S. Markets open in 2 hours and 41 minutes.
Updated from 11:34 a.m. ET
Update: President Obama has instructed Tim Geithner to "pursue every legal avenue to block these bonuses" planned for AIG executive. It's "hard to warrant any bonuses" at AIG and there is no way to "justify this outrage," the President said midday at the White House. After tripping over his words at one point, the President said, "I am choked up with anger," a familiar feeling in America today.
Earlier: Every time AIG is in the news, it's almost guaranteed to provoke a gag reaction from American taxpayers and policymakers. This weekend was no different as two stories of bailout abuse and outrageous behavior came to light:
First, AIG was lambasted as disclosures of its $1.2 billion bonus pool came to light. About $450 million of the bonuses were planned for employees of its financial services unit, the rogue hedge fund insider the insurer, which lost $40.5 billion later year. The Wall Street Journal reports at least seven individuals at that unit were due bonus payments of $3 million each.
AIG CEO Edward Liddy says "the firm's hands are tied" because those bonus payments are "contractual commitments"; apparently, both he and regulators fear the fallout of trying to abrogate contracts, which may be legally binding but were signed before AIG became a ward of the state.
Second, in part to quell the outrage over the bonus revelations - which apparently only came to light because a $165 million payment was due on Sunday - AIG released the names of its counterparties who, thus far, have received at least $90 billion of the $173 billion of government funds the firm has received in what amounts to a backdoor bailout of Wall Street firms, banks and foreign institutions. (Reports vary but Bloomberg says the counterparties got $105 billion of AIG bailout funds.)
Along with Merrill Lynch, Bank of America and Citigroup, the prime beneficiaries of the AIG bailout bonanza include European banking giants Societe Generale, Deustche Bank and Barclays.
But at $12.9 billion to date, Goldman Sachs is at the top of the list AIG bailout beneficiaries. This only reinforces the perception the AIG bailout was really a bailout of Hank Paulson's former firm. And, by the way, AIG's Liddy had to resign from Goldman's board in order to take the AIG job last fall.
Are you outraged yet? The good news is you're not alone: Ben Bernanke, Tim Geithner, Larry Summers, NY Fed President (and ex-Goldman economist) William Dudley, Rep. Barney Frank, Sen. Bob Corker and others have each expressed anger and outrage over the AIG bonuses and payments to counterparties.
The real question is what they, and President Barack Obama, are going to do about it? The really scary thing is there's no end in sight to these AIG outrages, unless we make a major change of course - pronto.
Cripes, just take over the company! We the taxpayers already own 80%! We ARE the board. We should put it in a controlled bankruptcy, which immediately allows you to void all contracts and obligations, fire the management, then offer to hire back ONLY the ones we need, at 1/2 the rate they were paid. If they don't like it let them walk - they can get one of those many great jobs they were paid to be retained from getting.
your AIG video isnt playing right. it plays the Jon Stewart video
This is robbing of tax payer's money, pure and simple. Our children and children's children have been robbed to pay for all of these bonuses, bailouts, and 'stimuluses'. It makes me angry and sad beyond words. Who is the voice of the people?
I was against the bailouts from the start. If the businesses were allowed to fail, we wouldn't be talking about this now. Once again, mismanagement of almost everything in this country is being rewarded and the responsible don't get anything extra, unlike the irresponsible. I love this country and the US Constitution, but hate the way our country is being managed. How do we eliminate those in power for treason against the American people?
Hey CBS, why do we need Ed Bernanke on “60 Minutes” to tell us what we already know. Yogi Berra told it best through his immortal words, “It's like deja-vu, all over again” ------- Or, we could have just tuned into one of our favorite tunes. Like DAVID BYRNE’s, “Lie to Me” If nothin's right, what's wrong? It's a beautiful world and a beautiful dream, and you know I don't care if things are not what they seem. I wanna be happy, I can't stand the pain. I wanna believe, so tell me again. You can lie to me ------- Or, Tom Waits’, "Lie To Me" Whip me baby, lie like a dog. I really don't care if you do. Slap me baby, give me all of your grief. I have no use for the truth. Never stop telling me lies. Lie to me baby ------- Or, Madonna’s, "Devil Wouldn't Recognize You" It's like over and over, you're pushing me right down to the floor. I should just walk away. Over and over I keep on coming back for more. I play into your fantasy. And now that it's over you can lie to me right through your smile… even the devil wouldn't recognize you, I do
So, I hear you losers are miffed about our bonuses here at AIG. Sheesh! Get a life, will you? I only got a crummy five million this time! What is that? POCKET CHANGE! What a RIP-OFF! I’ve got a good mind to just up and quit this job! Then you’ll REALLY be sorry!
I have always believed "AMERICA IS A COUNTRY OF CROOKS."Everyday it is becoming evident that my theory is CORRECT. Look at the mess created by these so called CEO's. Our Congress is YOYO, they bark but don't bite. Laws are created to legally Screw US. No matter what we want, we will never get it. Under the Patroitic -phrase we got screwed by the Iraq war and now they want us to spend our money for the economic can get better. GO SCREW
I have always believed "AMERICA IS A COUNTRY OF CROOKS."Everyday it is becoming evident that my theory is CORRECT. Look at the mess created by these so called CEO's. Our Congress is YOYO, they bark but don't bite. Laws are created to legally Screw US. No matter what we want, we will never get it. Under the Patroitic -phrase we got screwed by the Iraq war and now they want us to spend our money for the economic can get better. GO SCREW
TELL ME... Why do we need Ed Bernanke on “60 Minutes” to tell us what we already know. Yogi Berra told it best through his immortal words, “It's like deja-vu, all over again” ------- or, any one of our favorite tunes... like DAVID BYRNE’s, “LIE TO ME” --- “…If nothin's right, what's wrong? It's a beautiful world and a beautiful dream, and you know I don't care if things are not what they seem. I wanna be happy, I can't stand the pain. I wanna believe, so tell me again. You can lie to me ------- or, TOM WAITS’, "LIE TO ME" --- “Whip me baby, lie like a dog. I really don't care if you do. Slap me baby, give me all of your grief. I have no use for the truth. Never stop telling me lies. Lie to me baby” ------- or, MADONNA’s, "DEVIL WOULDN'T RECOGNIZE YOU" --- “It's like over and over, you're pushing me right down to the floor. I should just walk away. Over and over I keep on coming back for more. I play into your fantasy. And now that it's over you can lie to me right through your smile… even the devil wouldn't recognize you, I do”
I 've got an idea. Since the Fed. Gov't owns 80% of AIG, this is as good as a fed. agency. Back in the RTC days of the 90's, the RTC could repudiate any contract as if it was never written. Well, that's what they need to do now...repudiate these bonus contracts as if they were never written and they can do this through their ownership of AIG. The contracts go away as do the contractual bonus obligations.
I think we should forget about the politicians, and just concentrate on SKEWERING all the fat cats. It's easier, and FAR more satisfying.
This is what everyone was thinking but don't want to say. The USA is the one that made all this happen.At less a few. Know we the people are going to be paying for it a very very long time.2010 should be the start of the change that everyone voted for last Nov..Remove all these people in DC.
I like happycampers idea. Let's take them over put them in bankruptcy and rewrite these contracts. These guys have such egos from living above the rest of us that they believe they will be get another high paying job. Let them look for a job while they are on unemployment.
I have always believed "AMERICA IS A COUNTRY OF CROOKS."Everyday it is becoming evident that my theory is CORRECT. Look at the mess created by these so called CEO's. Our Congress is YOYO, they bark but don't bite. Laws are created to legally Screw US. No matter what we want, we will never get it. Under the Patroitic -phrase we got screwed by the Iraq war and now they want us to spend our money for the economic can get better. GO SCREW these so called LEADERS.
"About $450 million of the bonuses were planned for employees of its financial services unit, the rogue hedge fund insider the insurer, which lost $40.5 billion later year." Who writes this stuff? --- lay off the scotch when you write people.
So its Goldman Sachs again ...Gee what a surprise!!!!!!! The people who brought you the crisis, profited handsomely from it ...and now want the American taxpayers they have ripped off for years pay for their overreaching!!!!!! (Our pension funds were not enough and had to be super-leveraged) Remember the long line of Goldman CEO's/alumni that have been or are US Treasury Secretaries.....Robert Rubin, Henry Paulson, Tim Geithner. The real danger is to thier 'shadow banking' systems and exposure of many of our politicians's complicity. (Dodd, Rangle, Schumer.$$$$$$$.. on and on) Hang 'em, hang em high.
Everyone is SOOOO outraged at AIG. WOW!! The stock is going up 76%. What a joke to the little people. Don't you get it. Any of you! The more outrage the more the little people dump AIG and the rich buy it up. This company cannot fail. AIG has a pipeline to FED money and nothing anybody says is going to change that. The lawmakers, Wall Street and other rich are going to laugh all the way to the bank buying up AIG stock. This is not a dead company. By my estimate it is worth $25 a share. It has been beaten up on bulls**t talk. You would be well advised to get on the gravy train. This is the best penny stock I have seen in decades. I'm in at .37.
There are members of the National Guard who have been repeatedly called to leave their jobs and families to serve in Iraq and Afghanistan. Some have been deployed for three and four tours of duty. These ordinary people know what it means to take one for team USA. That is not something that can be said for the executives and board members of AIG. During the most subversive fiscal crisis in the history of the country—a crisis that is at least partially of their own making—rather than voluntarily abrogate the bonus clauses of their employment contracts, the principals of the economic disaster have chosen to line their pockets with public money. These people have betrayed their country. They have not done it for ideological reasons or misguided belief in some higher order. They have done it for the basest of reasons: money. The American people are told that they have to pay bribes just to get these people to show up for work. Supposedly, that’s how good these thieves are. The truth is they are unworthy. They do not even deserve to be Americans. It is probably impossible to jail the traitors or to expel them from the country, but it might be possible to shun them. Let’s find out. Let’s tell them we do not want their money. We do not want their business. We do not want their company. We do not want to have anything to do with them, at all. They can go on living in America, but make no mistake. They are residents without a country. ……………. Yes, there is anger in this post. But there is something more too. There is cold, unforgiving hatred for the marginal members of the greater social structure who eagerly sold their country not for ideals but for personal gain and pleasure. Lion prides have a name for outcast rogues like our overinflated grifters. They’re called baby eaters.
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- Monday March 16, 2009 11:48AM EDT
we should not allow any more money go to aig .sorry if they fail they fail .