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Looks like the USG will use the upcoming $30 billion infusion for AIG as leverage to get AIG to "pay back" the bonuses.
Something to bear in mind - when a lot of these Bank CEO's talk about the need to give out bonuses in order to "retain talent", that's a euphemism for "don't let that guy with his big portfolio of clients (investors) walk out of here, and wander over to one of our compe ors".
This is one of those rare instances where the euphemism is more damaging to their PR than the plain-spoken truth would have been.
Looks like the USG will use the upcoming $30 billion infusion for AIG as leverage to get AIG to "pay back" the bonuses.
these stimulus packages......a % of it will be funneled into dodgy accounts....
Seriously if you are not outraged by this I don't know what could get a rise out of you. 165 million dollars in bonuses after the goverment just gave you billions to help you keep ur jobs. Are you kidding me? What the do people think? I know they should be using every penny they got from the USA to make sure they are not in this position again. Bonuses! Absolutly no excuse for this.
While festering up some quality outrage let's be sure to save some for our government who has blindly given away billions and billions of dollars to AIG with no strings attached whatsoever and who only became "outraged" upon finding out that We The People were legitmately outraged.
seriously those books should be audited....
i wonder where most of that money is channeled too....
someone mentioned to me today at work that 90+ billion of the dollars the government gave AIG went to overseas banks ... they quoted their source as Rush Limbaugh, so take it or leave it, but that made me much more angry than the bonus bull . I've glanced over a few sites who just put that news out today and they don't mention any amounts, but the story is most definitely true.
Yep, its true, and that 60mil or whatever is a drop in the bucket compared to what they really ed up.
http://thesource.typepad.com/thesour...-overseas.html
The Politico reported late last night that billions of dollars used to bailout AIG has gone to secure the footing of banks overseas. This is a huge set-back to the Obama Administration and the Democrat party, as the sole purpose of these bailouts was to help American banks who will in-turn start making sound loans that will help revitalize the economy. Now, we are learning billions were pumped into the largest foreign banks across the globe instead of providing help to banks here in the United States.
From the Politico:
AIG ships billions in bailout abroad
By: Eamon Javers
March 15, 2009 07:40 PM EST
Billions of American taxpayer dollars used to bailout insurance giant AIG are flowing to some of the largest foreign banks in the world, according to new do ents released by beleaguered company Sunday.
The revelation seemed sure to cause political complications for President Barack Obama and his economic team, already on the defensive Sunday over why they couldn’t stop AIG from doling out $165 million in bonuses to some of its top corporate officials – even as the company was receiving a massive infusion of taxpayer funds.
The do ents AIG released account for some of the more than $180 billion in aid that AIG has received, and they detailed for the first time which financial firms are benefitting from the federal handout.
In all, AIG disclosed payments of $105.3 billion between September and December 2008. And some of the biggest recipients were European banks. Societe Generale, based in France, was the top foreign recipient at $11.9 billion, Deutsche Bank of Germany got $11.8 billion and Barclays, based in England, was paid $8.5 billion.
Here in the U.S. , Goldman Sachs received $12.9 billion. Edward Liddy, the government-installed CEO of AIG, sat on the board of directors of Goldman Sachs until he joined AIG.
He took the position while President Bush's Treasury Secretary, Henry Paulson—who until joining the administration had served as Goldman's Chairman and CEO—arranged the insurance company's initial government bailout.
The disclosure of US taxpayer money going to foreign banks rankled some analysts. “These revelations raise serious questions about the extent to which U.S. taxpayers are being asked to bail out foreign banks,” said James Rickards, the Senior Managing Director for Market Intelligence at Omnis, an applied research organization. “Why were French and German authorities not asked to pick up the tab for their portion of potential AIG losses?”
Political pressure is also building on AIG, as House Speaker Nancy Pelosi on Sunday called on AIG executives to “renounce” their bonuses and refuse retention pay, and said that House Financial Services Chairman Barney Frank would “examine options that are legally available to recover taxpayer funds of companies that abuse the privilege of taxpayer assistance.”
The House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises has called on Liddy to testify before the committee on Wednesday.
That’s information that members of Congress and media outlets have been trying to get either AIG or the federal government to divulge since last year. The U.S. government now holds a majority stake in the bank,
AIG has resisted disclosure of the so-called “counterparties” who were at the other end of the firm’s complicated financial transactions. The company argued that such information was proprietary and private. And the Bush and Obama administrations also declined to divulge the information. But some in Congress pushed hard for it, insisting that taxpayers had a right to know which companies were benefiting from bailout money.
“Our decision to disclose these transactions was made following conversations with the counterparties and the recognition of the extraordinary nature of these transactions,” said Liddy.
Additional reporting by Lisa Lerer.
The american government isn't even bailing out America anymore
Well, if that's who bought the CDSs, that's where the money goes. I'm more pissed off about the bonuses that that.
But isnt most of AIG international divisions are doing better than compared to the parent company....
doesnt really make sense when you have to consolidate accounts anyway
you don't mind at least 30 billion of the people's dollars went to overseas banks? This isn't about who bought what, this is huge amoutns of mine and your dollars being used to help banks in Europe.
LOL, I can't believe you really think 163 million tax payer dollars in bonuses to Americans matters compared to 30 billion tax payer dollars to Europeans. We shouldnt have given AIG any bailout money, or much less, not just overlook the much more vast number of dollars that would be leaving the country.
werent AIG holding 1.4-1.6trillion debt?
umm i think the govt shouldve just let it fold and use the bailout money on something else....
If you didn't think AIG owed money to overseas interests, you aren't thinking properly.
We should just build a big ass great wall of America around our country too and stop dealing with anyone who's not in the 50 states. We don't need the rest of the world!you don't mind at least 30 billion of the people's dollars went to overseas banks? This isn't about who bought what, this is huge amoutns of mine and your dollars being used to help banks in Europe.
LOL, I can't believe you really think 163 million tax payer dollars in bonuses to Americans matters compared to 30 billion tax payer dollars to Europeans. We shouldnt have given AIG any bailout money, or much less, not just overlook the much more vast number of dollars that would be leaving the country.
Oh wait.
Yeah, I got a good grasp on who's thinking properly and who's not.
The American government should have let AIG collapse, not given them billions upon billions to pay off overseas debts.
You're not a fool, are you?
so you agree with sending tens of billions of mine, yours, and every american's dollars to europe?
i don't care what the US Government does generally, but indirectly giving at least (from the article) 30 billion dollars europe is morally, ethically, totally wrong. Last I checked, Germany's banks problems are Germany's problems, not America's or even AIG's, no matter how much money they owe them.
The bailout was a fait accompli. Nobody wanted to think about what would happen if AIG could not cover its obligations. Some like you are apparently unable to even think what may have happened. when guys like Bush and Paulson pull a complete 180 on government intervention like that, you have to know it serious.
Protectionism was what pulled us out of the Great Depression, wasn't it?
Let's hear it for bankruptcy, then, shall we?
It strikes me that this episode illustrates the inherent evils of a bailout...nevermind the irony of Congressional Democrats being "outraged" about 1/10 of 1% of the money they gave AIG when it was them that fostered this mess to begin with, bloviating blowhard Barney Frank being chief idiot.
There really are no rules; the government pumped many billions into AIG, but the company and its new "owners," the taxpayers, are making it up as they go along. AIG is likely right in saying it is contractually obligated to pay the bonuses, but the public is also right in believing a bailout shouldn't work this way. The problem is that we have no established rules to govern bailouts.
Which is one basic reason why bankruptcy is far preferable. Bankruptcy has reasonably clear rules that have been developed over many years. The bankrupt company is run for the benefit of its creditors, or, if appropriate, shut down. The creditors decide whether to keep existing management on. Executory contracts can be accepted or rejected; labor and supply agreements can be renegotiated. A judge presides so that disputes can be fairly resolved.
A bailout is an ill-defined procedure in which no one's rights are clear, and political calculation counts for more than fairness or transparency. The flap over AIG bonuses is just one of many that we can expect to arise if we continue down the path of endless bailouts, rather than allowing insolvent companies and their creditors and investors to pay the price of that insolvency.
I say the government demand AIG return either all or, at the least, 1/10 of 1% of the bailout funds. Then, it could be said the 165 million wasn't bailout funds and everyone can just shut the up already.
its a business, should just let it default.....
the american govt is just pouring in money where there is no possible future that AIG can pay back its loans and ....the bailout money is doing atm is just covering their asses for interest payments.....this is just getting worster by the day which has no cause
so what happen to american govts interest into this company or any other company it has bought shares into? how come they are not forcing meetings and change of pay scales/bonuses policys....im sure you dont have to wait for the AGM to start firing directors and , the govt holds enough % to force a emergency meeting if im not correct according to company law. The govt is just sitting still letting them company's continue the mess.
Let's Hear It For Bankruptcy!
March 16, 2009 Posted by John at 5:12 PM
The big news of the day is the AIG bonuses. Barack Obama, obviously worried about getting on the wrong side of the bailout backlash, berated AIG and directed Tim Geithner to do what he can to block their payment. Republicans weighed in too; John Boehner called the bonuses "outrageous" and demanded an "exit strategy" from AIG. The company, meanwhile, says it is contractually obligated to pay the bonuses and has no choice.
It strikes me that this episode illustrates the inherent evils of a bailout. There really are no rules; the government pumped many billions into AIG, but the company and its new "owners," the taxpayers, are making it up as they go along. AIG is likely right in saying it is obligated to pay the bonuses, but the public is also right in believing a bailout shouldn't work this way. The problem is that we have no established rules to govern bailouts.
Which is one basic reason why bankruptcy is far preferable. Bankruptcy has reasonably clear rules that have been developed over many years. The bankrupt company is run for the benefit of its creditors, or, if appropriate, shut down. The creditors decide whether to keep existing management on. Executory contracts can be accepted or rejected; labor and supply agreements can be renegotiated. A judge presides so that disputes can be fairly resolved.
A bailout is an ill-defined procedure in which no one's rights are clear, and political calculation counts for more than fairness or transparency. The flap over AIG bonuses is just one of many that we can expect to arise if we continue down the path of endless bailouts, rather than allowing insolvent companies and their creditors and investors to pay the price of that insolvency.
http://www.powerlineblog.com/archive.../03/023078.php
dude, you already made it clear you care more about principle than the actual money involved.
excuse the poor s like me who pay roughly every extra dime I have to goddamn europeans.
YOU MAKE ME ING SICK.
Then what?
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