AIG $165M bonuses after a $170B bailout?

March 16, 2009

Today’s question is the same as yesterday’s: Does Timothy Geithner inspire confidence?

How hard is this AIG thing to figure out? And why wasn’t this in writing before they received any cash whatsoever?

AIG got $170B in bail out money and they are going to use $165M in bonuses. AIG lost $61.7B last quarter and yet the bonus deal was made in 2008 “before they were in serious financial trouble”. Wrong. And the government knew about the bonuses before the bailout but it is only now coming to light?

Why?

Where is this transparency barry’s always babbling about?

BARNEY FRANK: These people may have a right to their bonuses. They don’t have a right to their jobs forever.

I don’t know anything about business, but something about this seems straightforward and the rest of it scummy. It’s like standing in line at the food bank and saying you have nothing to eat and then refusing to accept anything but gourmet food. Or having no clothes and expecting a designer outfit. Or telling the bank thanks for rescuing me from foreclosure but I need a loan to go on vacation.

Where are these people’s names? Put them in every magazine. Put a website up with all these bailout companies and give a run down of how much money the people, who caused the problem, will profit from the bailout. Let The American People see the greed first hand. Also list the people who were part of the deal-making process and knew about the contracts. They all need to be shamed. Then do a background check on every single person getting a bonus. See if they have paid their taxes.

And this argument that if they don’t pay the bonuses they’ll lose”talented people”? These talented people are responsible for what happened and they knew no matter what happened their money was safe. That is why it happened.

Why not force whatever section is getting the bonuses into bankruptcy? Make them chose a job or no job and a bonus. Or tell them they won’t get their bonus unless x happens. That should be stimulus enough for things to turn around.

How many hardworking autoworkers were laid off? Will be laid off? $165M could save a lot of jobs and houses. How many AIG shareholders have lost their IRAs, jobs and homes? A percentage of those bonuses should go to tax payers.

If there is no way around these bonuses then make these people donate their time. Make them do community service. They must be held accountable.

BARRY:

In the last six months, AIG has received substantial sums from the U.S. Treasury. I’ve asked Secretary Geithner to use that leverage and pursue every legal avenue to block these bonuses and make the American taxpayers whole.

Six months?

Why is this only coming out now?

What else is going on behind the scenes?

It’s becoming clearer why no one wants to work with Geithner.

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AIG Timeline
Hardball: timeline of bonuses
Tim Geithner’s AIG Timeline
AIG $165M bonuses after $170B bailout
AIG bonus breakdown
barry on AIG (video)
AIG: Edward Liddy (video)
Tim Geithner on Charlie Rose (video)
Andrew Cuomo: $30M of AIG bonuses will be returned
Andrew Cuomo’s letter to AIG (10-28-08)
Chris Dodd: 33% approval rating