OUTRAGE! OUTRAGE!

[Perd Hapley]

Also, it is on the radio today that the one Congressman Dodd-D is the one who put in the loophole saying bonuses would not be affected by the CEO pay limits tacked on to that bill.

I also heard that (from Rush) but I believe that referred to the Porkulus bill, not the TARP.  The point remains, of course. 

[Northwoods]

What is even more "funny" a lot of these guys took their bonuses and ran.

Would you have stuck around that company?

[Perd Hapley]

I guess you could say those guys were looting the company.  But at least that way, some of them might start their own businesses, and the money will be used more efficiently, further stimulating economic growth. 

Or even if they stick around, the bonus money goes back into the economy anyway.  They're not stuffing that cash in a safe deposit box like Jason freakin' Bourne. 

[Strings]

>Ok, then can we have a civil war?<

Only after you finish your peas and carrots, young man!

[wquay]

I guess you could say those guys were looting the company.  But at least that way, some of them might start their own businesses, and the money will be used more efficiently, further stimulating economic growth.

These are the execs of a company that lost 180 BILLION DOLLARS. What makes you think that the money will be used "more efficiently"?

The possibility that these guys might "start their own businesses" should make the US taxpayer afraid. Very afraid.

[wacki]

The Stimulus Bill Explicitly Guarantees Executive Bonuses Contracted out Before February 11
http://campaignspot.nationalreview.com/post/?q=MjM0YTg5ZWVhZTk1NTFmMjI4NGFmZTMzMTEwMTk5MzM

Obama Administration: We Didn't Find Out About AIG Bonuses Until This Month
http://blogs.abcnews.com/politicalpunch/2009/03/obama-adminis-1.html

WaPost: "The payment plan had been no secret."  ...."Attorneys working for the Fed had been examining the matter for months and determined that the retention payments couldn't be touched because AIG would face costly lawsuits and be subject to penalties from states and foreign governments. Administration officials said over the weekend that they agreed with that assessment."
http://www.washingtonpost.com/wp-dyn/content/article/2009/03/16/AR2009031602961.html?hpid=topnews

Top 2 recipients of AIG money: Obama & Dodd
http://www.foxbusiness.com/story/markets/industries/finance/dodd-cracks-aig---time/

The rabbit hole goes deeper... but man this is a fun one to watch.

[grampster]

Could someone tell me how these bonuses are any different than the earmarks built into Omnibus crime Budget Bill?

Pork is evidently good for the goose, but not the gander.

Any bill written by congress to tax a few people with respect to these boni would be a violation of the Constitution, Article 1, Sec. 9, and should be immedietly struck down by the SCOTUS.

[Nitrogen]

What is even more "funny" a lot of these guys took their bonuses and ran.

I just read this, and if true, this would make me "grumpy" but not quite "outraged."

[Perd Hapley]

These are the execs of a company that lost 180 BILLION DOLLARS. What makes you think that the money will be used "more efficiently"?

The possibility that these guys might "start their own businesses" should make the US taxpayer afraid. Very afraid.

As I understand it, the bonuses were merit-based.  I.E., they were earned by those who had not been complete doofuses.  If I am incorrect, and they were just given out to all the guys at the top of a failing company, please indicate.

But let's just keep in mind that the politicians currently faking righteous indignation are the same people who gave our money to these failing companies with no oversight and who knew, or should have known, what the money could be used for. 


For the record, I have never supported any of the TARPs, Bail-Outs or Porkuli. 

[MechAg94]

http://www.examiner.com/x-268-Right-Side-Politics-Examiner~y2009m3d17-Obama-Received-a-101332-Bonus-from-AIG

Obama Received a $101,332 Bonus from AIG
March 17, 3:01 PM · 306 comments

Senator Barack Obama received a $101,332 bonus from American International Group in the form of political contributions according to Opensecrets.org. The two biggest Congressional recipients of bonuses from the A.I.G. are - Senators Chris Dodd and Senator Barack Obama.

The A.I.G. Financial Products affiliate of A.I.G. gave out $136,928, the most of any AIG affiliate, in the 2008 cycle.  I would note that A.I.G.’s financial products division is the unit that wrote trillions of dollars’ worth of credit-default swaps and "misjudged" the risk.

[makattak]

http://www.examiner.com/x-268-Right-Side-Politics-Examiner~y2009m3d17-Obama-Received-a-101332-Bonus-from-AIG

The A.I.G. Financial Products affiliate of A.I.G. gave out $136,928, the most of any AIG affiliate, in the 2008 cycle.  I would note that A.I.G.’s financial products division is the unit that wrote trillions of dollars’ worth of credit-default swaps and "misjudged" the risk

I'd say they didn't misjudge the risk.

Apparently there was a risk they might lose money AND have to bear the responsibility for losing it.

They don't.

Looks like good risk-assessment to me.

(Incidentally, this is WHY we, that is, the government, shouldn't bail out companies. A little thing called: moral hazard. )

[ronnyreagan]

The Stimulus Bill Explicitly Guarantees Executive Bonuses Contracted out Before February 11
http://campaignspot.nationalreview.com/post/?q=MjM0YTg5ZWVhZTk1NTFmMjI4NGFmZTMzMTEwMTk5MzM

Blaming Dodd for that "loophole" is entirely incorrect.

[charby]

[Angel Eyes]

Blaming Dodd for that "loophole" is entirely incorrect.

O RLY?

Dodd: I added the bonus provision

http://www.cnn.com/2009/POLITICS/03/18/aig.bonuses.congress/index.html

[doczinn]

It seems to me that the Dem.'s (both the politicians and the media) are trying to manufacture outrage about this non-issue. 

It's their SOP. It's the Two-Minute Hate.

if they wanted the execs to not receive their contractual pay they should have made that a provision of funding them

In fact, they did precisely the opposite:

http://attackmachine.com/blog/2009/03/18/misquoted-in-their-own-autobiography/

Who in their right mind would codify in law that bonus payments to executives at bailed-out companies could not be prohibited?

Well, Chris Dodd.

From page H1412 of the Final Stimulus Bill, “SEC. 111. EXECUTIVE COMPENSATION AND CORPORATE GOVERNANCE:

‘(iii) The prohibition required under clause (i) shall not be construed to prohibit any bonus payment required to be paid pursuant to a written employment contract executed on or before February 11, 2009, as such valid employment contracts are determined by the Secretary or the designee of the Secretary.”

This amendment provides an exception for contractually obligated bonuses agreed on before Feb. 11, 2009, which exempts the very AIG bonuses Obama is condemning every single chance he gets. The amendment is in the final version and is law.

That’s the amendment that Dodd got placed in the Obama stimulus bill. You know, the one that passed with no House Republican votes, and only three Senate Republican votes.

Way to go, guys.

[Monkeyleg]

So, the government will now decide which contracts are to be honored and which are not? What about your mortgage? Can the government decide that the lender was wrong, and you should give up your house?

[makattak]

So, the government will now decide which contracts are to be honored and which are not? What about your mortgage? Can the government decide that the lender was wrong, and you should give up your house?

No, but they've already talked about saying the seller was wrong and just lowering the amount of money you owe on your mortgage.

WHEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE!!!!!

More uncertainty!!!!!!!!!!

[ronnyreagan]

O RLY?
Dodd: I added the bonus provision
http://www.cnn.com/2009/POLITICS/03/18/aig.bonuses.congress/index.html

Yes really. Dodd added a provision limiting bonuses. Treasury officials demanded exemptions from the limits which appeared in the bill that came out of the conference committee. It makes no sense to blame the man who added the amendment to limit the bonuses even though it got warped into something else. The amendment as he wrote it did pretty much the opposite of the end result.

[Balog]

We can't blame the guy who wrote it, cause he really had good intentions? Pardon me while I laugh in disgust. I plan on holding every slimy little bastard policritter accountable for their actions, regardless of how pure of heart you think they are.

[makattak]

We can't blame the guy who wrote it, cause he really had good intentions? Pardon me while I laugh in disgust. I plan on holding every slimy little bastard policritter accountable for their actions, regardless of how pure of heart you think they are.

THAT'S EXACTLY IT!

That's the argument from every liberal politician: You can't blame us for the bad results, we had good intentions in what we did.

These people cannot see beyond the first result of their actions and are surpised when something more or something else happens.

They are blind and yet people still elect them. (Perhaps because they are blind as well?)

[ronnyreagan]

We can't blame the guy who wrote it, cause he really had good intentions? Pardon me while I laugh in disgust. I plan on holding every slimy little bastard policritter accountable for their actions, regardless of how pure of heart you think they are.

If I write a bill that says "All citizens are exempt from future tax increases" but it comes out of committee as "All citizens born before 1850 are exempt from future tax increases" do you see the difference? Do you blame me or the person who added the extra language for you being exposed to future tax increases?

Dodd's amendment would have prevented bonuses. The version that came out of committee allowed bonuses already agreed upon but prevented new bonuses. He still voted for it, so he's as accountable as everyone else who voted for the bill - but he doesn't deserve to be specifically blamed for adding a "loophole" to allow these AIG bonuses. It would appear that came from some treasury officials.

[guns and more]

Sadly, Bush pushed the first waste of money. And fast tracked the second so Obama could sign it as soon as he took office. The republicans are just as bad as the democrats. Neither cares what the voter thinks, because they have achieved the tipping point where 50% of voters don't pay taxes. Why should they care?

[Nitrogen]

Now they are looking to pass a bill to tax any bonuses over $250k for any company that got tarp funds.

I'm not a big fan of TARP, or the fact that these people got bonuses, but come on already.  This is getting dumber and dumber.

[Nick1911]

Sadly, Bush pushed the first waste of money. And fast tracked the second so Obama could sign it as soon as he took office. The republicans are just as bad as the democrats. Neither cares what the voter thinks, because they have achieved the tipping point where 50% of voters don't pay taxes. Why should they care?

Citation, please.

[RoadKingLarry]

Heard on the radio (Hannity) that Geithner has aknowledged that his office was behind the bonus protection amendment.
Have yet to find a citation from another source.