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Welcome To Socialism: Obama Will Use Bailouts As Leverage To Dictate Executive Pay, Bonuses
Say Anything —
Forget that these companies are in the private sector, and that the government has no more business dictating compensation than it has business dictating product prices. The public is outrageously outraged about these bailed out companies paying big bonuses and salaries and so Obama is going to do something about it.
President Obama vowed to try to stop the faltering insurance giant American International Group from paying out hundreds of millions of dollars in bonuses to executives, as the administration scrambled to avert a populist backlash against banks and Wall Street that could complicate Mr. ...
Obama Tells Geithner to Block A.I.G. Bonuses
Democratic Underground Latest Breaking News —
... whole. In strongly-worded remarks to be delivered in the White House East Room before small business owners, Mr. Obama called A.I.G. a corporation that finds itself in financial distress due to recklessness and greed. Under these circumstances, its hard to understand how derivative traders at A.I.G. warranted any bonuses, much less $165 million in extra pay, Mr. Obama said. How do they justify this outrage to the taxpayers who are keeping the company afloat? Read more: http://www.nytimes.com/2009/03/17/us/politics/17obama.h...
Obama's Statement on A.I.G.
The Caucus —
... from Main Street to Wall Street to Washington, play by the same rules. That is an ethic we must demand. What this situation also underscores is the need for overall financial regulatory reform, so we don’t find ourselves in this position again, and for some form of resolution mechanism in dealing with troubled financial institutions, so we have greater authority to protect the American taxpayer and our financial system in cases such as this. We will work with Congress to that end. Helene Cooper has more here.
Economic Credibility Gap: Obama Defies His Own Economic Team, Demands Move to Block AIG Bonuses
Open Left - Front Page —
... , Summers specifically "suggested that there was little if anything the government could do to stop [AIG's bonuses], seconding the conclusion of Treasury Secretary Timothy F. Geithner." Now, President Obama has publicly contradicted them, signaling a major schism in the new administration: ...
Obama Also Very Angry at AIG
Weekly Standard Blog —
... and adapt accordingly. (One possible exception to this rule: his handling of his former pastor.) So Obama announced today that he has ordered everyone's favorite Treasury Secretary, Timothy Geithner, to "pursue every single legal avenue to block these bonuses" that AIG plans to hand out to executives. ...
Obama Aiming to Block AIG Bonuses
Truthdig: Drilling Beneath the Headlines —
Dishing out $165 million in bonuses to AIG executives who played a part in bringing their company to near ruin is an “outrage,” according to President Barack Obama, who pledged to do whatever he can to stop the payouts at the bailed-out insurance giant.
The New York Times:
“In the last ...
Wow. Let's Play "Double Or Nothing".
JustOneMinute —
The Race To Stupid in discussion of the AIG bonus debacle has been won by Michael Crowley of TNR :, who endorses Marc Ambinder's suggestion that AIG force the bonus recipients to publicly sue: Yeah, let's just burn their houses down. I can't even believe I am reading this. And do note the utter lack of outrage over the larger losses in the boring, low glamour securities lending area. People who want to believe we need more regulators are determined to look past that glaring regulatory failure, and people who would rather wring their hands than think are wringing their hands. First of all, as I wasted my breath explaining , AIG FP is ...
No More Mister Nice Blog — PLEASE, RIGHTIES, MORE LIKE THIS President Obama wants his administration to find a way to claw back those AIG bonuses ... and Rob at Say Anything is horrified at the prospect: Welcome To Socialism: Obama Will Use Bailouts As Leverage To Dictate Executive Pay, Bonuses Forget that these companies are in the private sector, and that the government has no more business dictating compensation than it has business dictating product prices.... ... in order to deflect that anger from the people who supported giving these companies ...
David Sirota: Economic Credibility Gap: Obama Defies His Own Economic Team, Demands Move to Block AIG Bonuses
Politics on HuffingtonPost.com —
... , Summers specifically "suggested that there was little if anything the government could do to stop [AIG's bonuses], seconding the conclusion of Treasury Secretary Timothy F. Geithner." Now, President Obama has publicly contradicted them, signaling a major schism in the new administration: ...
Remember Who ELSE got paid by AIG?
Patterico's Pontifications —
[Posted by Karl]
As Pres. Obama tries to lead the “outrage” over bonuses paid to execs at troubled insurance giant AIG — and AIG’s payments to foreign banks, etc. — with the taxpayers’ money, let’s take a moment to remember which taxpayer employees got paid by AIG:
Over time, AIG hasn’t shown an especially partisan streak, splitting evenly the $9.3 million it has contributed since 1989. In the last election cycle, though, 68 percent of contributions associated with the company went to Democrats. Two senators who chair committees charged with overseeing AIG and ...
Why Are AIG’s Contracts Sacrosanct But Not Union Workers’ Contracts?
Think Progress —
Yesterday on ABC’s This Week, Larry Summers, head of President Obama’s National Economic Council, called insurance giant AIG’s plan to pay out $165 million in bonuses “outrageous” but insisted there was little the government could do about it. This despite the $170 billion in taxpayer funds that have been given to AIG. Summers cited the sanctity of contracts:
SUMMERS: We are a country of law. There are contracts. The government cannot just abrogate contracts. Every legal step possible to limit those bonuses is being taken by Secretary Geithner and by the Federal Reserve ...
Another Day, Another Town
Riehl World View —
Another day, another town. A circus must roll on in America if it is to be a real circus. There's not much adventure in running away from home to join the local Shriner's Club, after all.
There are two traveling circuses in America just now, which is not to say they are both un-serious and being provided for entertainment value alone. Though I suspect one is.
Some days it is the circus of Hope, other days it's the one of pessimism. Both having been staged for effect. Today there is outrage on display in the Big Tent. Apparently it will also offer up a side show Tonight. Sometimes it solicits large donations from big benefactors to build ...
Thuggishness
Blue Crab Boulevard —
Thuggishness Let’s be clear here. Do I think American International Group has a public relations nightmare on its hands right now? Yes, I do. Do I think the traders who are getting huge bonuses at taxpayer expense deserve those bonuses? No I do not. Hell, they are partly to blame for the mess the economy is in. But they do have valid contracts which require the money to be paid. I am quite sure AIG tried to find some way not to pay the money within the terms of the contracts. They are not totally stupid and know exactly how bad this was going to look. I think the traders in question are slitting their own throats, employment-wise in the long run. But. Regardless of ...
That's My Money You're Effing Around With, People...
Winds of Change.NET —
I will yield to few people in my tubthumping (great disc, btw) populism, and my belief that we're as screwed up as we are because of regulatory capture by the wealthy and powerful.
And yet I want to take most of the commentariat out behind the woodshed with my 1-3/4" Kramer horsehide belt and see that some attention is paid.
Why?
Because they are, collectively being idiots. And when I hear about Obama being "sick" over it, he's being an idiot too. Look, it's like this.
When you're doing a workout, you have two choices. Close the doors and let the creditors collect what they can, or do a workout. ...
Two Minutes Hate
the talking dog —
March 16, 2009, Two Minutes Hate The last time I have seen this kind of a coordinated assault was, dare I say it, during the run-up to the Iraq War. And now, alas, it's "my side," led by my college classmate, The President, who rails against the current enemy the State, Emmanuel Goldstein ... no wait... I mean... those greedy bastards at AIG's credit default group who are getting hundreds of millions in bonuses that the President wants back . The thing is, of course, that just as then Senator Obama railed against a $150,000 junket taken by AIG executives during the debates against Senator McCain, this is a sideshow... ...
Crooks and Thieves - All of Them
The Democratic Daily —
Today, President Barack Obama vowed to try to stop AIG from paying out hundreds of millions of dollars in bonuses to the very same executives that caused AIG’s problems.
Tonight there’s a new report from Reuters that shows that “Citigroup Inc awarded Chief Executive Vikram Pandit $10.82 million of compensation in 2008, a year when the government propped up the bank with $45 billion of capital.”
They are crooks and thieves… All of them. I’m mad as hell over all of this and everyone else should be too, but I got to say, Chuck Grassley’s an ass for making a statement like this on ...
Chaos and Opportunity
The Mahablog —
... over the AIG bonuses presents an opportunity. If the feds are ever going to nationalize failing financial institutions, now would be the time to do it. The public will understand.
Unfortunately, what this episode shows us is that the Obama Administration is being much too cautious — or much too something — in dealing with the financial crisis. Let us not be weenies, Mr. President. Although the President may be, as Glenn says, “sounding the right note,” talk ain’t gonna cut it.
See also the Talking Dog ...
Conservatives Suggest Torture Tactics For AIG Execs: ‘Exemplary Hanging,’ Guillotine Party, ‘Boiling In Oil’
Think Progress —
... at the recent news that bailed-out insurance giant AIG will be paying $165 million in bonuses to the same executives who “brought the company to the brink of collapse.” President Obama and members of Congress are trying to figure out a way to ...
Economic Credibility Gap: Admin Says It Can't Stop AIG Bonuses, Then Says It Can, Now Says It Can't
Open Left - Front Page —
First the Obama administration stretched the limits of credibility by saying it couldn't do anything to stop AIG's executive bonuses:
Even as Mr. Summers was denouncing A.I.G. for the bonuses, he suggested that there was little if anything the government could do to stop them, seconding the conclusion of Treasury Secretary Timothy F. Geithner.
Then, as public outrage simmered to a boil, the Obama administration admitted it could do something, and said it would do something:
President Obama vowed to try to stop the faltering ...
