Drudge Retort: Red Meat for Yellow Dogs

American International Group plans Wednesday to pay another round of employee bonuses worth about $100 million, said several people familiar with the matter, a year after similar payments at the bailed-out insurance giant infuriated many Americans and inflamed Washington. The Financial Products Division (the screwups who caused the mess) to receive money was the one that led to need for federal bailout.

Liberal Blog Advertising Network

Menu

Subscriptions

Author Info

AMERICANUNITY

MORE STORIES

Special Features

Comments

Admin's note: Participants in the discussion of this weblog entry should note the site's moderation policy.

What can anyone say but 'WTF'? Maybe they'll get cut off at the pass.

Ironic how this story is right above one beginning with "Rape Victim".

Ain't it?

"Government and AIG officials agreed last year that the bonuses at Financial Products, however unsavory they might seem in the wake of the company's multiple federal bailouts, were legally binding."

This is why AIG should have been left to sink or swim without government intervention. Basically us taxpayers are screwed out of more money because the government, instead of the private corporation, is on the hook for these legally binding bonuses. What really annoys me is that the $100 million is dedicated to about 200 people - or half a million bucks a person! What a bonus (beats the $700 bonus I got last year)!

The traders should be in jail instead of penthouses

Hmmm. An evil corporation story but no anti-Christian thread so far today. The kooks are slipping up.

so when will obama go after goldman sachs

OH I KNow

NEVER..........they give him too much money

Hows this...


Cryin won't help ya

...........Pryin won't do you no good


...............NNNnnnnnooooo

Funny to see people who I know I've seen cry over weatlth redistribution when it comes to giving to the poor appear on this thread, which is about wealth redistribution to the rich, and have nothing to contribute other than lame deflections.

If you're against wealth redistribution when the poor are at the receiving end but can't muster the same level of outrage when failed executives are paid bonuses by the taxpaer for ruining our economy, then you aren't really against wealth redistribution. You're just a stupid asshole.

The problem, Sully, is that most people who are against "wealth redistribution" were also against giving massive bailouts to AIG. When you buy a company, you take on all of its prior liabilities (including prior employment or bonus agreements) unless there is an agreement to the contrary. Acknowledging that fact is not the same as supporting the massive transfer of money to AIG in the first place.

#4 | Posted by bartimus
#7 | Posted by afkabl2

Are you two idiots? I mean...seriously, are you idiots? No one wanted to bail out AIG or other big banks. Bush did the right thing in pushing for TARP because he knew the danger. You can't let the banking industry fail without it taking down the rest of the economy with it. See the causes of the Great Depression. It's about quick liquid capital. Grow up or shut up, you stupid political hacks.

"so when will obama go after goldman sachs
OH I KNow
NEVER..........they give him too much money"


From a 2006 article

"When US President George W. Bush stepped forward to announce his new treasury secretary on May 30, a few Goldman Sachs friends likely knew Henry Paulson had the job.
Paulson was not the first Goldman executive to join the Bush administration from the 137-year-old investment bank described by the president as one of America's "most respected firms".
In fact, he was following in the well-heeled footsteps of three other former Goldman alumni who answered Bush's call, although Stephen Friedman who briefly headed the White House National Economic Council, has since returned to "the firm" as it is known on Wall Street.
Aside from running a billion-dollar bank, it is also likely that Paulson's political donations of tens of thousands of dollars to Republican senators added to his luster.
"It appears to be, for whatever reason, that Goldman Sachs sometimes has a disproportionate share of former employees in and out of government at any one time," said former White House spokesman Trent Duffy, who observed personnel decisions."
Oops!

Let me reiterate this part for blt2:

"described by the president (Bush) as one of America's "most respected firms"."

and this part:
"Aside from running a billion-dollar bank, it is also likely that Paulson's political donations of tens of thousands of dollars to Republican senators added to his luster."

So if Paulson is Bush's boy, why does he have Obama's support?

So if Paulson is Bush's boy, why does he have Obama's support?


You ask that as if there is any difference so far in how they govern.

Banks still broke
Homes still being foreclosed
Two wars still going on
Unemployment still rising
Spending still out of control
Partisan divide greater than ever before.

"Welcome to Wall Street - We Reward Our Worst Employees"

Way to go Obama

"Government and AIG officials agreed last year that the bonuses at Financial Products, however unsavory they might seem in the wake of the company's multiple federal bailouts, were legally binding."

Where were the negoiators? They could go under without the bailout and get no bonus or get a small bonur and keep their job. WTF is so hard to understand about that? No bail-out, no company, no job. Bail-out, small bonus, and company stays in business.

"The problem, Sully, is that most people who are against "wealth redistribution" were also against giving massive bailouts to AIG."

Depends on which bailout you were talking about. There are people here who were for Bush's and against Obama's and vice versa.

"When you buy a company, you take on all of its prior liabilities (including prior employment or bonus agreements) unless there is an agreement to the contrary."

I realize that execs get their own special deals but how are bonuses guaranteed? Guaranteed pay is called salary. "Bonus" means variable pay and most companies tie it to some type of performance goal.

Also, given that these people were looking at getting nothing had the bailout not occurred, they were in no bargaining position during the bailout and they could have been made to agree their bonus is gone due to their own incompetence.

But as I said, I don't believe for a minute that these companies were legally obligated in a 100% airtight manner to pay all these bonuses given that the companies had been bankrupted by the idiots receiving them. Doesn't pass the common sense test at all..

"Acknowledging that fact is not the same as supporting the massive transfer of money to AIG in the first place."

That's not really the type of behavior I was calling out.

I realize that execs get their own special deals but how are bonuses guaranteed? Guaranteed pay is called salary. "Bonus" means variable pay and most companies tie it to some type of performance goal.

Just because something is tied to a variable factor doesn't mean it isn't guaranteed. You can be guaranteed a bonus of x% of your sales for the year, etc.

Also, given that these people were looking at getting nothing had the bailout not occurred, they were in no bargaining position during the bailout and they could have been made to agree their bonus is gone due to their own incompetence.

I know. And it's our own government's fault for not attempting to negotiate the bonuses out of these peoples' employment contracts. My guess is they intentionally overlooked it.


Way to go Obama

#17 | Posted by bph320

Obama is damned if he does anything about it, and damned if he doesn't.

Quit giving AIG money. It will hurt us all when they topple. Fuck-em anyway.

From what I could ascertain these payouts are due to a 2007 contract. If they do not pay it then AIG can be sued for violating contract law; and either we are a nation of laws or we are not.

msg. If we hadn't bailed them out they would not have received a bonus and...... would have lost their jobs because the company wouldn't exist.

a hundred million,hell we don't talk millions anymore and billions will soon be chump change.what's after trillions?

Where is the skanks that wrote all those SWAPS hiding?

Nowhere Man, they're still cashing in taxpayer money. Kevin McGinn, chief credit officer and chairman of the committee; Win Neuger, chief executive of AIG Investments; William Dooley, head of AIG's financial-services division, which includes the financial-products unit that sold the credit-default swaps; and Barbara-Ann Livanou, director of financial institutions in the credit-risk-management department.

The complete lack of accountability is nothing short of astounding.

Just say "NO" to " o " and his cronies. Is this not a payoff or what? How much of this goes into the re-elect the mentally handicapped for president, the dunce and thief.

Tutamen Deus

It amazed me when a bunch on this thread would always talk down G.W.Bush, make comments about how stupid he was, well you morons could'nt wait to put someone in the office that does'nt have a clue, this obama piece of shit is a moron.

"It amazed me when a bunch on this thread would always talk down G.W.Bush, make comments about how stupid he was, well you morons could'nt wait to put someone in the office that does'nt have a clue, this obama piece of shit is a moron."

Agreed, but if you are trying to pretend that Bush was good, then you are the bigger idiot.

a hundred million,hell we don't talk millions anymore and billions will soon be chump change.what's after trillions?

#24 | Posted by semtex111

Ya............ you're right. That's chump change and doesn't matter. Isn't brazillions next?

"I know. And it's our own government's fault for not attempting to negotiate the bonuses out of these peoples' employment contracts. My guess is they intentionally overlooked it."

I tend to agree that this was intentional but whether or not it was intentional, it is still a redistribution on wealth.


"It amazed me when a bunch on this thread would always talk down G.W.Bush, make comments about how stupid he was, well you morons could'nt wait to put someone in the office that does'nt have a clue, this obama piece of shit is a moron."

How does that make Bush any less of a moron?

Son, you go get yourself a job. It's important that you receive your redistribution of wealth from your employer for your 40 hour week.

"Son, you go get yourself a job. It's important that you receive your redistribution of wealth from your employer for your 40 hour week."

We're talking about bonuses that are being paid with money taken from taxpayers by our government to people who drove their companies into the ground.

Try to keep up.

The AIG bonuses will be paid out because those that are being paid, EARNED those bonuses for work performed according the agreement with their employer.
While distasteful in light of the bailouts, remember that this is capitalism. The value of the work performed is simply a matter of negotiation between the employer and the employee without government interference into the value of service or the compensation amount. Once that work has been performed as agreed, the employer must compensate as agreed or be subject to litigation, fines, etc.
If you wish to supersede this system with one that determines pay arbitrarily based on governmental schedules determining pay rates for each job or political dogma, than you are a socialist.
Feel free to move to Cuba or North Korea.

"The AIG bonuses will be paid out because those that are being paid, EARNED those bonuses for work performed according the agreement with their employer. "

They ran the company into the ground. There employer wouldn't exist if not for the American taxpayer. They didn't earn anything.

If they got what they deserved AIG would have gone under, they would be unemployed and more competent people would be angling to take their place.

Ari & ....."Government and AIG officials agreed last year that the bonuses at Financial Products, however unsavory they might seem in the wake of the company's multiple federal bailouts, were legally binding."

This rule did not apply to UAW workers, whose contracts were broken simultaneously. Furthermore, unconscionable contracts are unenforceable under Federal Contract law.

Thieves are in charge. One rule for their co-conspirators, another for the people who work and produce.

"Thieves are in charge."

No!

Really?

I had a very expensive airplane insured with AIG.
They are scum.

It's been downhill since Andy Jackson and the last real Republican was Goldwater.

"I think every good Christian ought to kick Falwell right in the ass."
~Barry Goldwater

It's been downhill since Andy Jackson and the last real Republican was Goldwater.

Don't blame me. I voted for Sam Houston.

I had family at San Jacinto.

He was a cop in Austin in the later 1800's.

History is such fun.

SNIPER - "msg. If we hadn't bailed them out they would not have received a bonus and...... would have lost their jobs because the company wouldn't exist."

I do not disagree with you, but the legal contracts are still in force and as such must be honored. I do not necessarily like it but I do understand it.

I had family at San Jacinto.

I still have lots of family in Victoria descended from the original German settlers, but I've never met any of them. There is an unusual surname that is very common in that part of Texas, especially in Victoria. That is my first name. I was named after my g'grandmother's maiden name.

"I do not disagree with you, but the legal contracts are still in force and as such must be honored. I do not necessarily like it but I do understand it."

Do you feel the same way about the contractual benefits in the UAW contract?

DANFORTH -

While I believe that AIG must pay out contractually obligated bonuses (wages), I do not feel the same about an agreement with a union.

Union members have the ability through representation and a voting process to modify the terms of their employment. They can accept or reject offers by management to reduce benefits, wages, and even selectively cut the labor force if necessary in order to keep the business solvent.

The AIG employees that would get "stiffed" have no such process. They were hired to perform a job, showed up every day, punched the clock, and performed their individual jobs well enough to earn a contractual bonus. Neither Congress, Tim Gietner, nor the President of the United States should be able to tell ANY business what thay shall pay their employees.

This is why many felt that bailouts of business deemed "too big to fail" was a VERY bad idea.

Too big to fail = Too big to exist

Post a comment
Comments are closed for this entry.
Drudge Retort

Home | News | Comments | User Blogs | Nooner | Back Page | RSS Feed | RSS Spec | Copyright 2010 World Readable