15 AIG Execs Agree to Return Bonuses
Posted by the912project on March 24, 2009 · 187 Comments
Is this the start of government strong-arming or the result of a populist revolt?
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187 Responses to “15 AIG Execs Agree to Return Bonuses”The Restoring Honor Rally August 28, 2010
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I hope you're right Madazhell
What I find even more disturbing than the fact that the government strong armed these executives so that they had no other choice but to give it back — there are those out there that actually are pleased that they gave the money back. In taking over AIG, the government's deal was with AIG, not employees (former or current). Any contracts on the books were still valid and should have been upheld. To succumb to mob rule the way the House did is frightening. However, to see Americans pushed into a corner out of fear is even more frightening.
What in the world are we becoming? I know we must be patient and remain calm — but for how long? How Long? At some point something IS going to GIVE. Do we want to be in control when it does, or succumb to utter chaos because it all came at us too fast?
It is a sad day for us all when the Tax Code is used as a weapon to force our compliance.
While Glenn was reading the letter today from Jake De Santis (resigning from A.I.G.) this morning, I passed my husband in our living room and I gave him a high-5 mid way through the letter. "YESSSS! I want to shake this guy's hand!" Then, in order to pass the story along to others via email, I had to go to the NYT – eek! – and look at it myself. The comments on the article were appalling – don't these people GET IT? This guy worked hard to get to where he is today – his parents worked and sacrificed to give him the best opportunities in life that they could. So, he gets a job that paid LOTS of money – he worked for it! But reading the comments, it is obvious that people do not see it that way – they just say, "Well, NO ONE deserves to make THAT kind of money" Says who???? Do you say the same thing about Hollywood stars being paid 20 million dollars for one picture? Or is THAT ok? It is the same idea. The scary thing to me is that it is plainly apparent that class warfare is alive and well in this country – and those who are angry about it are not going to change. Reminds me of "We the Living" in many ways.
Regulation is reasonable, but a free market needs to be just what it is…free. The feds need to get the hell out and we might recover. Picking this wound with dirty fingers only leads to infections.
Nelson's response ctd:
We should demand greater transparency and accountability from our financial institutions. That is why I am an original cosponsor to S.133, the Troubled Asset Relief Program (TARP) Transparency Reporting Act, a bill that would force companies receiving financial lifelines from the Federal government to publicly report how they spend taxpayer dollars. The bill would also ban companies from using TARP funds for political expenditures or lavish and unnecessary expenses. I believe this legislation will ensure greater protection of taxpayer money. The bill is pending before the Senate Committee on Banking, Housing, and Urban Affairs.
Furthermore, I am an original cosponsor to the Compensation Fairness Act of 2009, a bill that will impose a 70 percent excise tax on bonuses paid by TARP recipients, including AIG. We must ensure that no taxpayer money rewards the people who got us into this situation in the first place.
Thank you for sharing your views. I will keep them in mind as I work to ensure that Congress better regulates all aspects of the financial markets. Please don’t hesitate to contact me again in the future.
For you folks in Florida, this is Senator Nelsons response to my e-mail airing my frustration with the senates handling of the AIG fiasco.
Thank you for contacting me about actions taken by the Treasury Department and Federal Reserve to inject nearly $170 billion into American International Group, Inc. (AIG).
Recently, the Treasury Department and the Federal Reserve announced a restructuring of the Federal bailout for AIG, adding $30 billion to the plan. I am concerned about this strategy, given AIG’s perpetual problems and the recent payment of $165 million in executive retention bonuses, and I question whether the company should have been bailed out in the first place. I voted against the original bailout bill because it lacked accountability measures and limits on executive compensation.
It is nothing short of government robbery. Socialism is putting a gun to someones head, and taking their money, but what is more fearful is when citizens are so afraid of their govt, that they will give up what is rightly theirs, such as these bonuses. I was just as mad as everyone else, but please point the finger at whom is to blame. I was told at a very young age that whenever you point a finger at someone, there are three fingers pointing back at you. We did it, and we did it by saying to ourselves that it can never happen to us. It not only has, but this is just the tip of the iceberg. Extortion is criminal no matter who does it.
Yes, Acorn was the temporary unemployment agency that was used to send the people to the AIG executives this weekend. Furthermore, it was the SEIU Union that financed the busses and hired Acorn to furnish the tax payer paid people to attend the scam through a local disguise chapter, of Acorn, called Working Families, which of course, are not who they say they are at all.
Not one media outlet, other than Fox, has reported this. Maybe it's time to flood the other media outlets with emails, letters, phone calls and most importantly TEA BAGS. Also General Electric should be flooded with demands for the resignations of Jeff Zucker, Roger Immelt and their entire executive board who are owned by George Soros.
The governments opportunity to act on the bonuses for AIG were prior to delivering any bailout! It scares me to think in one single day we legislated a 90% tax on bonuses. What else with this administration decide to tax at their whim? Shame on their hypocrisy and ignorance. How stupid do they think the American people are?
Maybe since Justice Scalia was "called out" Blarney Frank, he might get more vocal in saying, publically, "Hey, this thing you want to do (90% tax on bonus) is unconstitutional and as a Justice, it's my job to publically inform you and the people." Where is the spine? Justices are quiet, even at blatant disregard for the constitution and the rights of the citizens. The sheer blatancy of what they are trying to do to these execs boggles the mind, but not to the degree that there is a severe lack of response, especially from people who know this mess is wrong. Thus the question…who is speaking for us? Pardon me for a while, I'm going to go and cling to my Bible while I clean my guns. The sheer frustration of America is silently brewing, and brewing, and brewing. Hey AIG execs….Keep your money, don't let them win by twisting the constitution, don't give in, it ain't about the money, it's about the principle–We don't work for them!
I agree, they should be impeached. If we can't get anywhere with impeachment then we should sue Congress – A Citizens Class Action Lawsuit – passing bills without reading them first, 90% retro active Tax etc .
So, all Congress has to do it threaten to pass laws that blatantly violate the Bills of Attainer and ex-post facto laws prohibited by Article 1 of the Constitution and they can intimidate certain segments of the American population? Have these clowns in DC read anything about the American revolution? This kind of nonsense is why were declared independence from King Charles III.
And I quote:
- He has refused his Assent to Laws, the most wholesome and necessary for the public good. (passing bills expressly forbidden in the US Constitution)
- He has erected a multitude of New Offices, and sent hither swarms of Officers to harass our people and eat out their substance. (TARP, the Stimulus Bill, the Omnibus bill, the new proposed budget, the Climate Czar, the Car Czar, the Chief Performance Officer, etc…)
- For imposing Taxes on us without our Consent: (the 90% tax law to go after AIG)
- For depriving us in many cases, of the benefit of Trial by Jury: (Bill of Attainder)
Thomas jefferson said : Ipredict future happiness for americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them
Unfortunately most people don't care about freedom until they lose it, they don't see that we are all in this together. Today AIG, tommorrow window washers, your neighbor, and eventually you.
OldArmyVet we need to buy them a copy of the 5000 year leap and if i may steel aline from the book . as:we may define a republic to be…a government whichderives all its power directly orindirectly from the people and is administered by persons holding their offices during pleasure for a limited period or during good behavor……now that came from the federalist papers,and was quoted in the 5000 year leap…….are these folks behaving .
It is very sad and tiresome that many of our elected and appointed officials (president, senators, representatives, staffs) have no respect for our Constitution. They swore to uphold and defend the Constitution which implies they understand and honor the Constitution. I recommend every elected and appointed official attend a class on the Constitution, principles, etc. and then decide to either uphold and honor the Constitution in words, actions, and behavior, or resign their office. This is the fundamental building block of principle centered leadership and our country.
OldArmyVet we need to buy them a copy of the 5000 year leap and if i may steel aline from the book . as:we may define a republic to be…a government which derives all its power directly orindirectly from the people and is administered by persons holding their offices during pleasure for a limited period or during good behavor……now that came from the federalist papers,and was quoted in the 5000 year leap…….are these folks behaving .
Adwean,
If you had actually read my numerous other posts on this site, you would know that I stood up for these execs to get the bonuses that they legally earned.
Ben Franklin said: "They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety."
By giving in, they have given the left a powerful weapon in their march to rule, not lead, this country. If legislation can't be passed, they will just call out the mobs and get what they want.
Standing up for your liberty as well as those of your countrymen is what made America what it is, but capitulating to congress and the mob mentality will make America no different from some third world dictatorship.
I agree completely. If for no other reason they shouldn't have given it back just because of the pressure to do so. On the other hand when your family is getting threats it is understandable to give the money back, so I don't fault them in the least. I'd be curious how many of the bonus recipients overseas gave they're money back.
As for the Congress, it seems to me that the whole purpose was to divert attention from they're huge spending spree that they were taking so much heat for. The sad thing is it seems to have largely worked. When was the last time you saw a story about the latest piece of drek found floating in the stimulus pond? Do you really think they've all been uncovered?
Yeah, they have lots of money from the Obama Stimulas to hire Bus loads of people doing their horrible bidding.
They loaded up a bus with ACORN folks (sound familiar?), called the liberal left wing we ar forced to call the press (which obliged by sending four reporters for each protester) and went to these peoples homes to bully them into returning the bonuses. That is worse than communism. This government is now completely off the tracks.
sad as it is… whats done is done, Obama can't get these bonuses back through a "special tax" he knows that this is a direct violation of one of our main pillars of the Constitution… when he told America that they were "taxing the bonuses back" did he straight out lie to us or does he just think that regular Americans don't understand the Constitution? the crime itself it the little loophole that enabled the money to be paid out….
i actually think the AIG bonus scandal was, in a way, positive… if the scandal did not break, Geithner would still be hell bent on a banking industry takeover by the Fed…. all this blew up, Obama or whoever told him to back off and appease "the people" so Geithner goes out and buys up the toxic debt, the greedy F*@k he is only waited a day, he sees the markets appreciated his gesture so he figures he can now again pound Congress for ultimate control of more companies ie; troubled banks…. just the way i see it as a little Chess game…..
If you or myself did this, we would be in court under charges of blackmail. Amazing how things are different when you are a Democrat.
Give up not only their salary for a year, but the money they make off all the lobbyist that kiss their butt!
Why do you think Obama can't keep from laughing during his interviews? He's laughing at us.
Especially that the people sent there to do so were from ACORN and financed by your Tax Dollars and monies paid by the SEIU union.
Why do I feel like I'm in the middle of "Wag the Dog?" Geeeees!!!!!
Welcome to Union
Of course, the general public is probably less afraid to go to bat with some execs, then the federal government.
This is why we need to petition (a First Amendment Right) the government, collectively. That being said, I think that we need viable solutions as well. The obvious answer from Congress may be, how would you do things differently.
I would suggest revisiting political philosophies again, and getting rid of both existing parties. We are all SOOO tired of bi-partisanship, and the party line (garbage) rhetoric.
Thank you,
Mark
<a href=”http://www.hyperblogcafe.com” target=”_blank”>www.hyperblogcafe.com
Yes, Acorn was the temporary unemployment agency that was used to send the people to the AIG executives this weekend. Furthermore, it was the SEIU Union that financed the busses and hired Acorn to furnish the tax payer paid people to attend the scam through a local disguise chapter, of Acorn, called Working Families, which of course, are not.
Not one media outlet, other than Fox, has reported this. Maybe it's time to flood the other media outlets with emails, letters, phone calls and most importantly TEA BAGS. Also General Electric should be flooded with demands for the resignations of Jeff Zucker, Roger Immelt and their entire executive board who are owned by George Soros.
How about the latest "great idea" from the Treasury secretary? Give him the power to seize any business that, according to the Obama group, pays out "too much" to any of its employees? How can anyone be safe from such all-pervasive Socialism? Our founding fathers knew that government unbridled is more dangerous than any individual. One of the principles I have heard taught in 7th grade civics this year (I work in a public school) is the idea of limited government that derives its power from the people. When did that idea get thrown out? What good does it do to try to teach our children the history of our country and their duties and rghts as citizens if our government deliberately ignores them?
I agree. How many of us would reject money, that kind of money, if our bosses gave it to us? Would we think we deserved it? Would we willingly give it back? I myself, am not sure, to be honest.
Did you all hear that Acorn rented the bus and furnished the people for the tour of AIGs homes this weekend?
I hope everyone is letting their representatives know how they feel. Don't use all your frustration on this site.
Maybe someone could fill me in…I’m not sure of all of the facts. The executives returning their bonuses may have been, morally, the right thing to do, but does anyone know these people. Could it be that some of these men or women worked hard for these bonuses and ,is it possible, deserved them. It is a lot of money, I know… I’d like to get that kind of bonus. I can hardly stand to listen to her, but my state senator, in her righteously indignation is vilifying these people. I can’t judge people on the way they live, but maybe these people were counting on this money to pay their mortgages, kids tuition…things that I am trying to pay, too. I could be totally naïve… but just wondering.
So the government attacks them if they don't give the money back and we attack them if they do? Is this seriously going to be the direction the 9-12 movement goes in? Just another special interest group lashing out at anyone who doesn't act in a way we agree with?
How easy it is to pass judgment when you weren't the one in the crosshairs, when your children weren't the ones put at risk. Maybe you would have given the money back also, maybe you wouldn't. Until you're in that position you're in no place to judge.
Maybe instead of venting our anger on these executives we should be standing in support of them. Maybe they would have been more willing to stand up to the government if they knew that people like us stood with them, instead of feeling completely defenseless as the entire nation came after them.
Maybe we should have told them that they are not alone.
I agree Adwean, we should have stood up for the employees no matter what. If our government is allowed to bully it's way into a citizens pocket by showing no respect for the constitution we are all in one big world of hurt. The committee should have been interrogating themselves instead of AIG. It's the old game…"I voted for it before I was against it". A complete out of controll congress.
Well stated. I took excerpts and forwarded them to my Representative and one of my Senators that voted for Tarp, Omnibus, etc. Thanks.
The AIG bonuses are a distraction from the real issues, but a useful device for Obama. Bonuses – and certainly not AIG's relatively small bonuses – aren't the real issue. If they were, we'd be talking about Goldman Sachs (and other banks) 2008 bonuses, which were in the billions, not mere hundreds of millions. (Note: GS partners and their families were also Obama's biggest source of campaign funds – nearly $1 million – from people associated with a private business, per OpenSecrets.org). Obama is using the AIG bonus flap to stoke public anger so he can use that to get support in nationalizing the financial sector. And, by focusing on AIG, he's hoping people don't look at billions in bonuses given by banks. Obama hopes his slight of hand isn't noticed. (Another little fact: Geithner and the Feds approved GS and Morgan Stanley becoming banks last year, after he denied Lehman Brothers' request to become a bank.This was an important, though under reported development, that gave GS and Morgan Stanley a very advantageous position, on top of getting bailout funds under TARP ($10 billion) and from AIG ($13 billion.)
I heard on the news that some of the AIG execs are giving back the bonuses to which they were legally entitled.
I COMPLETELY disagree with this action. (Fuming yet?)
Why do I disagree and call on all of the other execs to keep their bonuses? Simple, for the same reason you should never negotiate with terrorists. It gives them power and proves they can push us around.
By giving back these bonuses they have shown our out-of-control government that if they can't COMPEL a 90% tax on these bonuses, then they can EXTORT a 100% tax by unleashing the media and the ACORN-backed mob on them.
I have been so disappointed with all these execs (banking, auto etc) going up to the Hill to have their A$$es handed to them and they sit there and not only take it, they roll over to show their soft underbelly. How did these guys get to be so highly placed in such huge companies without owning even a rudimentary backbone.
They should give the money back because it's the right thing to do, not because the government bullied them into it , they need to make clear their reasons.
There is no, or ought not be, any 'the Government', WE are the government.
It was 'We the People' who decided, by way of our elected representatives, that AIG was too big to fail. That in order for this essential, irreplaceable, entity to continue operations we would 'invest' in it.
To that end, on their part (right or wrong), AIG determined the best course of action was to retain certain employees for a time certain to wind down unsuccessful operations and divest harmful assets. So, they offered incentives to those employees to stay in the form of retention bonuses. A tool used by businesses ALL the time – a legally binding contract.
If this is not so, then just cause needs to be brought before a court and the Judiciary needs to decide a remedy. It is NOT up to the Legislature to decide anything with regard to this, PERIOD.
"The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence. If `Thou shalt not covet' and `Thou shalt not steal' were not commandments of Heaven, they must be made inviolable precepts in every society before it can be civilized or made free." – John Adams, 1787
We need to stop operating under the assumption that our government had nothing but good intentions of helping AIG. The fact is, and can be demonstrated by the paper trail. The money that has gone to compant after company was nothing more than political payoff for services rendered. AIG and Fannie and Freddie and the auto unions financed the election of the current crop of malcontents in Washington…Washington is just paying them back. Bonuses written into the stimulus bill signals a concerted effort to protect this money…all while pointing the finger at the little man. It's a disgrace and it must stop.
At what point is America going to start holding her elected officials accountable for their treasonous power grab?
Texan2,
In reguards to President Obama taking the Oath of office or not.
The members of Congress who did take thier Oaths are at fault here. I am not looknig to assign blame to one party or the other. Infact, both parties are to blame, not to mention the American people who got caught up in the populus wave of outrage.
Until our citizens decide that their elected leaders need to live up to their oaths, and act like mature leaders accepting respondiblity for all of their actions, the laws which they create, and enforcing the laws created; we will continue to be governed by the Government that we have and one that is hard to respect.