Author Topic: Congress Passes Bill To Tax AIG Bonuses!  (Read 8286 times)

Parsad

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Congress Passes Bill To Tax AIG Bonuses!
« on: March 19, 2009, 01:00:59 PM »
I'm not sure which is the bigger joke...the whole financial industry debacle or how the political parties operate after such a crisis!  Cheers!

http://www.globeinvestor.com/servlet/story/RTGAM.20090319.wAIGtax0319/GIStory/
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ericopoly

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Re: Congress Passes Bill To Tax AIG Bonuses!
« Reply #1 on: March 19, 2009, 01:53:07 PM »
Yeah, I don't like what they are doing here.

Nobody at AIG can have a bonus?  What about the managers who aren't screwing things up?

Somebody compared this to a classroom where a few kids get an F in math, so the teacher gives the entire class an F.  The classroom is AIG, and the individual students are managers of the subsidiary entities.

Parsad

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Re: Congress Passes Bill To Tax AIG Bonuses!
« Reply #2 on: March 19, 2009, 02:02:37 PM »
Yup, that's a pretty good analogy.  What I hate about Congress is how after every debacle, they get on this friggin' high horse and hang a few people.  Yet, they never explain how all of them or the regulators missed all of this as well. 

- Didn't Congress approve the increased leverage that Fannie Mae and Freddie Mac started using a few years ago? 
- Didn't they also approve the merger of banks and investment companies? 
- They also created the precedent a decade ago by approving the merger of banks and insurance companies...remember Citibank and Travellers merging? 
- Why didn't Congress enact any legislation preventing 100% or 110% mortgage financing back when Angelo Mozillo was sitting on CNBC talking about it?

This era's Milken or LTCM will be AIG & Madoff!  Cheers!
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ExpectedValue

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Re: Congress Passes Bill To Tax AIG Bonuses!
« Reply #3 on: March 19, 2009, 02:08:58 PM »
Bonuses should only be given out if the business is profitable. In this case, it clearly is not.

JAllen

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Re: Congress Passes Bill To Tax AIG Bonuses!
« Reply #4 on: March 19, 2009, 02:17:55 PM »
I wish they were more concerned with the imminent P&C losses from them writing Florida homeowner's policies way/$3,000 cheaper than everyone else among other travesties that wouldn't surprise me.

They and the public are up in arms about $150M when it's a ~trillion dollar company and they own 80% of it!  Shouldn't they be more concerned with the ongoing operations (or at least mention them every once in a while?!?!?

Why wasn't AIG put into runoff the day after they were initially bailed out?

ExpectedValue

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Re: Congress Passes Bill To Tax AIG Bonuses!
« Reply #5 on: March 19, 2009, 02:29:19 PM »
I wish they were more concerned with the imminent P&C losses from them writing Florida homeowner's policies way/$3,000 cheaper than everyone else among other travesties that wouldn't surprise me.

They and the public are up in arms about $150M when it's a ~trillion dollar company and they own 80% of it!  Shouldn't they be more concerned with the ongoing operations (or at least mention them every once in a while?!?!?

Why wasn't AIG put into runoff the day after they were initially bailed out?

Why would a tax payer want $160M of their money go to pay bonuses to the group who nearly crashed the financial system? It's their money that's bailing out the company, they should have some say in the matter.

ericopoly

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Re: Congress Passes Bill To Tax AIG Bonuses!
« Reply #6 on: March 19, 2009, 02:30:05 PM »
Bonuses should only be given out if the business is profitable. In this case, it clearly is not.


So if GenRe had blown up then the managers as See's Candies don't deserve a bonus?

ExpectedValue

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Re: Congress Passes Bill To Tax AIG Bonuses!
« Reply #7 on: March 19, 2009, 02:36:05 PM »
Bonuses should only be given out if the business is profitable. In this case, it clearly is not.


So if GenRe had blown up then the managers as See's Candies don't deserve a bonus?


Would Berkshire Hathaway be 80% taxpayer owned? If so, it would be the taxpayer's decisions, as in that case, they are the true owners of the business (not the executives).

Executive compensation should be something controlled by shareholders -- read Icahn's speeches on this issue if you feel otherwise.


Parsad

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Re: Congress Passes Bill To Tax AIG Bonuses!
« Reply #8 on: March 19, 2009, 02:41:43 PM »
I have no problem with Congress trying to do anything to get the bonuses back.  The U.S. government owns it, and they should treat it like they are the owner.  I have a problem with the moral outrage that they show, in particular the shellacking Liddy took, when he's working for peanuts to turn this thing around after being brought in specifically to do so.  How about each Congressman take a pay cut for missing the boat too, as well as Chris Cox, Alan Greenspan, Hank Paulson, Ben Bernanke, Sheila Bair, etc. I believe the taxpayers pay their salaries as well.  What about Bush & Cheney?  Cheers!
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Uccmal

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Re: Congress Passes Bill To Tax AIG Bonuses!
« Reply #9 on: March 19, 2009, 02:47:25 PM »
I see nothing wrong with what congress is doing in this case.  They are doing their best to correct an earlier oversight.  

If AIG had gone bankrupt then all of the bonus receivers would be out of a job, with no severance, no bonus, and no prospect of a job for the foreseeable future in the financial services industry.  Buggers should be grateful to have a 6 figure salary right now.  

I for one dont believe that anyone is indispensible to an operation.

You can be assurred that the rank and file at AIG have been taking hits to their perks such as free coffee, raises etc.  You can also be sure that all of their workloads have risen due to hiring freezes.  No one in any organization receiving government bailout money should be getting a bonus.  

I for one think the company should have been put into runoff, the same as Lehman Bros, rather than being bailed out.  Then a proper house cleaning could have been done and the pain contained, without this ongoing bullshit, and perpetual begging at the government coffers.  

Interview of former senior CDS department person from AIG at ORH:
Q: What is your greatest accomplishment in your former job?
A: Well, We sold so many bad risks that we destroyed a 200 Billion dollar company over a 3 year period.   :P
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