The Treasury and the Fed new about the AIG bonuses months ago

@dogsnme (1266)
United States
March 20, 2009 9:14am CST
Check this out. This report just came across the news a few minutes ago. Don't know what else to say except that it's enough to make you turn red with anger. I trust no politician. http://www.foxbusiness.com/story/markets/industries/finance/treasury-fed-reviewed-aig-bonus-info-months-ago/
2 people like this
4 responses
• United States
21 Mar 09
These in their employment contracts (some politians understood that they couldn't legally stop these payments, and some did) that were in place when AIG was making Billions in profit. This industry is alot like the automotive industry, they base their pay on their best years. These bonuses were set up to avoid paying higher amounts of taxes, so they put them in their contracts so they wouldn't change. The company should have changed those contracts due to their current situation, but Wall Street doesn't live in the real world. While the rest of us understand right from wrong, they only understand money and greed. They don't care that they drove the world into a recession, as long as they make their money, they could careless.
@dogsnme (1266)
• United States
21 Mar 09
I understand what you are saying. Of course, AIG wasn't the only one to cause the recession. The ball got started rolling with the mess with Fannie Mae and Freddie Mac and it was the Clinton administration that put it in motion. I have no problem with a company making billions of dollars as long as they do it fair and square and earn it. That's everyone's right to work hard and educate themselves to be able to be successful and get the most out of life whether it be money or some other form of wealth. But that is the problem. Many of these companies get rich with the aid of the government and that makes it an unlevel playing field for everyone else. In a free market economy, these companies that have been run by poor management and are on the verge of failing should be allowed to fail. That's part of the risk that businesses, whether big or small, have to face. But, when the government steps in and offers to bail out a business, especially when it has been guilty of poor business practices, the government essentially removes any idea of responsibility and accountability and that has the result of allowing the business to continue with reckless practices without the fear of consequence. Even when the government threatens to penalize the business for their failings, it usually amounts to nothing more than a slap on the wrist. Like you said, we understand right from wrong and when we do something wrong we suffer the consequences. But when the government steps in and starts offering bailouts in the name of economic stimulus, right and wrong no longer applies and no one is able to learn from their mistakes and become better individuals and companies. And then everyone loses...well at least those who aren't politicians and don't get the benefit of the bailout do.
• United States
21 Mar 09
I should have said this to start out with: I don't support these bonuses, nor do I defend AIG, they did have a large part to play in this recession. I do agree that AIG wasn't the only ones to blame for this, there are alot of people to blame: Bill Clinton, the republican congress that repealed the Glass-Stegal Act (put in place after the great depression to stop the very thing that happened here, with $200 million dollars from the banking industry to buy this repeal), The great Alan Greenspan who asked the banking industry to find ways for more Americans to afford a house (including praising the banking industry for using Adjustable Rate Mortgages, aka ARMS which got us in this mess), our government in general who saw the housing bubble and didn't care about it, and the American people who knew what they were doing was wrong but everyone else was doing it so why should I. I didn't agree with the bailouts either, I think that the Bush administration lied to the American people, I think they were more worried about their life after they left office. I am sure you will see Bush, and Paulson paid millions to speak at functions for AIG, and all of these other investment companies that they bailed out. It is sad that the leaders of our goverment lie to the American people so they can personally reap the bennifits while leaving the mess for someone else to clean up. But, if you look back at George W. Bush's past executive experience, you will see this isn't the first time he has done this. The people that voted for Bush should have looked at his past, and realized what the rest of the country did in 2000. I am not blaming Bush for everything, but I am blaming him and Paulson for the bailout. Bush himself said that he saw this housing problem coming in 2005, but Bush did nothing at all to stop this (remember in 2005 republicans controlled the entire government, and could have stopped this problem).
@xfahctor (14130)
• Lancaster, New Hampshire
21 Mar 09
Agread, Bush was grossly negligent in stopping this and he and his cohorts, Paulson and Berneke ushered in that blasted bailout. It was not only a disaster for our economy it was unconstitutional, criminal and I think it should be investigated. My problem with the whole bonus debacle is this. Though it ws disgraceful they got the bonuses, waht is more ominoius, is that people are ok with congress pulling an act to get those bonuses back that was exactly one of the major causes of the first american revolution. Look up article 1, section 9, line 3 of the cosntitution. What that specificly forbids is exactly what congres did to get those bonues back. That outrages me far more than what aig did.
1 person likes this
@Arkie69 (2156)
• United States
20 Mar 09
All this bull sh** we are seeing now out of our government may prove to be painful later on but I think the people are going to get a good education on how our politicians really work. People are forever getting on me because I get on the politicians but I don't trust any of them. All of them are only concerned about two things. That is raking in all the under the table money they can and getting reelected. They will do or say anything to accomplish this. Obama is the biggest duck in the puddle. If he isn't stopped he will completely destroy our economy and probably the country with it. Have you heard what the stupid jerks are talking about now. Someone suggested that we start creating run away inflation and it is supposed to stop the crash. This is just an excuse to crank up the printing presses and start printing a bunch of boney to cover what they have wasted. If they haven't already done it and I think they have. Art
@dogsnme (1266)
• United States
20 Mar 09
I've heard they've already printed up a trillion dollars worth of money. Stupid! What really irritates me is that people don't need a PhD to see thru all this crap. All they need to do is open their eyes. The politicians are doing everything they can to blind the people to the truth and many people are willingly letting them do it. People blame Bush for all this, and it's obvious he certainly had a hand in it, but when the facts begin to present themselves that Obama, was to some extent, guilty as well, they turn a blind eye or seem to say that they need more proof before they can decide whether or not he is guilty. I think people are afraid to admit that they may have made a mistake by putting so much trust in a politician. I voted for Bush and I'm pissed that he basicly sold the country out to Socialism with the excuse that he had to do something to keep the economy from going down the drain. Just like you said, Arkie, this is all a bunch of bull sh**. WHEN ARE THE PEOPLE GOING TO WAKE UP?
@Arkie69 (2156)
• United States
20 Mar 09
If things keep going like they are, and I am pretty sure they will, the people are going to have no choice but start admitting we have made a bunch of mistakes that we must correct and as soon as possible. If the government isn't real careful they are going to push the American people to an all out fight. Should it come to that we the people have no choice but do what ever we must to win or we will loos everything. If you think Obama wouldn't step up as a dictator in a heart beat you better think again. Art
@dogsnme (1266)
• United States
20 Mar 09
I believe we are very close to the sh** hitting the fan. But, I agree, if that's what it takes to win the country back and secure our freedoms, then so be it. And I also agree that Obama would step into the role of dictator at the first opportunity. He's the most Socialist-minded President I've ever seen.
@jonesy123 (3950)
• United States
20 Mar 09
They all knew it, and they all approved of the bonus regulation being removed from the stimulus package. Obama is all up in arms about these bonuses. He knew about it, too, don't kid yourself into believing he didn't. He's putting on a nice show now because he can pass the blame onto somebody else and look like the hero. Maybe it was even intentional. Here is the man, who is doing something, who is righting the injustice... It's politics. I wish people would wake up and finally figure out what play has been put on for them.
@dogsnme (1266)
• United States
20 Mar 09
You're exactly right. Who's the most foolish? The fool or the fool who follows him?
@dfollin (12777)
• United States
20 Mar 09
Yes,they knew about it.But,like the president said last night that the way AIG did it was not against the law,it's a moral issue.He also said that they were going to find a way thru it.I suppose that means they are looking for a loophole.
@dogsnme (1266)
• United States
20 Mar 09
Well, I don't trust Obama or too many other politicians to get us out of this. Check this website out, http://www.opensecrets.org/orgs/toprecips.php?id=D000000123 This shows the money that AIG gave to congressmen in 2008. I checked it a few days ago and Senator Chris Dodd was the top recipient. Now Obama is in the top spot. These companies and organizations don't give this kind of money to politicians because they feel charitable. They give it for the purpose of influencing the politicians for their(the company's) benefit. These are our tax dollars they are throwing around. Obama may be trying to fix the problem but I'm not convinced that he is guiltless over the whole issue. Afterall, he did sign on to the first stimulus bill that all this originated from. I'm sorry, maybe I'm wrong, but I don't believe that he signed that bill without having some idea of what was going on, especially when you consider the amount of money he received from AIG.
1 person likes this