Author Topic: Congress Passes Bill To Tax AIG Bonuses!  (Read 8648 times)

ericopoly

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Re: Congress Passes Bill To Tax AIG Bonuses!
« Reply #20 on: March 19, 2009, 03:32:49 PM »
"Thing is, it's got nothing to do with percentage of ownership.

Is Wells Fargo 80% owned by taxpayers?  No, it isn't.  So why does it also apply to them?"


They don't have to keep the money that was given to them, they can pay it back and those restrictions would be lifted. If they didn't need the money in the first place, they should be able to pay it back rather promptly.



I don't think I would want to do business with anyone that can add restrictions to a deal months after it was struck.

Would you treat me that way if I had taken a personal loan from you?  Is that your ethics?

Banks depend on confidence. If confidence dries up they're in no position to bargain.


So people are confident today now that this bill has passed?  Who is more confident?  Barney Frank's re-election manager?


ExpectedValue

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Re: Congress Passes Bill To Tax AIG Bonuses!
« Reply #21 on: March 19, 2009, 03:37:39 PM »


judging from the TED spread, yes, there is more confidence.

ericopoly

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Re: Congress Passes Bill To Tax AIG Bonuses!
« Reply #22 on: March 19, 2009, 03:50:44 PM »


judging from the TED spread, yes, there is more confidence.


I can see the TED spread narrowed right after the big bailouts.

It didn't spike upwards as a result of AIG's bonuses.

So what is your point?



dealraker

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Re: Congress Passes Bill To Tax AIG Bonuses!
« Reply #23 on: March 19, 2009, 04:40:58 PM »
I love watching Larry Kudlow say, "They are going to run all that talent off and who then will run the business?"

Exactly what "talent" is this manic/depressive man talking about?


benhacker

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Re: Congress Passes Bill To Tax AIG Bonuses!
« Reply #24 on: March 19, 2009, 04:54:56 PM »
I'm with Eric 100% on this.

Are the bonuses to AIGFP personal crazy?  Yes.  Should they be refunded or have been stopped... I'd definately lean to 'yes'.

Does this Bill cause more than $180m in collateral damage. YES.  Think about this, they enacted legislation in the tax code to address a very tiny issue.

Seems insane.  If we want to change the landscape of banking forever, that's fine, but you are going to have to acknoledge that some little stuff is going to slip through teh cracks.  $180m is little stuff, there are bigger fish to fry.

In the end, I think this won't do horrible things, but the principle is getting scary, the government is making pretty fast reactionary moves to respond to perceived public opinion and this is really not the way a government should be run.

I hope we can get out of this funk soon so our country doesn't go down the drain... tired of seeing so much irrationality at all levels. :(

Ben
Ben Hacker
Beaverton, Oregon - USA

Uccmal

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Re: Congress Passes Bill To Tax AIG Bonuses!
« Reply #25 on: March 19, 2009, 04:59:23 PM »
I love watching Larry Kudlow say, "They are going to run all that talent off and who then will run the business?"

Yeah well, Seems to me any agency with basic computing skills and people trained in forensic accounting could clean up the mess pretty rapidly.  Just ask Microsoft when the DOJ subpoened all their communications.  Say, what about the FDIC, or the NAIC.  Dont they have those skills that they put to use on a continuous basis?
GARP tending toward value

Uccmal

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Re: Congress Passes Bill To Tax AIG Bonuses!
« Reply #26 on: March 19, 2009, 05:06:59 PM »
Well, Ben, It is probably time for all governments to stop reacting and start thinking about long term planning.  They have mostly stopped the bleeding, and kept the patient concious.  Now they should be looking at long terms solutions.   

The problem is that everyone wants to be seen to be doing something when perhaps the best thing is to do nothing at all for awhile. 
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Zorrofan

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Re: Congress Passes Bill To Tax AIG Bonuses!
« Reply #27 on: March 19, 2009, 05:29:13 PM »
 "I love watching Larry Kudlow say, "They are going to run all that talent off and who then will run the business?"

I love to say to Larry - "lets see, these folks ran the business so well it needs $180 BILLION in government bailouts to stay operating. You call that TALENT?" IMHO the shareholders should demand they go.....

my $0.02

cheers
Zorro

ericopoly

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Re: Congress Passes Bill To Tax AIG Bonuses!
« Reply #28 on: March 19, 2009, 05:47:22 PM »
I love watching Larry Kudlow say, "They are going to run all that talent off and who then will run the business?"

Exactly what "talent" is this manic/depressive man talking about?


How are you going to find the best candidates to replace them if you refuse to offer any kind of incentive based pay?

I am actually impressed that Barney Frank didn't amend the bill to require executives to punch in and punch out everyday to make sure that taxpayers can see these guys are putting in a 40 hour week.  Not!  They have done a good job of ensuring that nobody will put in more than 40 hours, that's for sure.  I hate work environments like that -- the guy sitting in the next cubicle surfing the web all day gets the same pay as the guy busting his ass.  Welcome to the government... oh wait, it's a shame that Government Employees Insurance Corporation  (GEICO) has already been taken, because it would be so fitting a name for the new AIG.



ericopoly

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Re: Congress Passes Bill To Tax AIG Bonuses!
« Reply #29 on: March 19, 2009, 05:51:04 PM »
"I love watching Larry Kudlow say, "They are going to run all that talent off and who then will run the business?"

I love to say to Larry - "lets see, these folks ran the business so well it needs $180 BILLION in government bailouts to stay operating. You call that TALENT?" IMHO the shareholders should demand they go.....

my $0.02

cheers
Zorro


What the hell?  Why should we demand Wells Fargo executives be let go?  The bill covers all firms who took more than $5b in capital -- and that's Wells Fargo.