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Home › Politics

AIG Bonuses | 03/16/2009 3:00 pm

Obama Comes Out Against AIG Bonuses (Video)

By The Staff at wowOwow.com

President Obama is not amused by insurance giant AIG’s plans to pay about $165 million in bonuses to its employees.

AIG, 80% of which the government owns, insisted this weekend that they’re legally obligated to pay their staff these bonuses, but President Obama this morning has asked Treasury Secretary Timothy Geithner "to use that leverage and pursue every legal avenue to block these bonuses and make the American taxpayers whole."

Obama also blasted the company’s out-of-this-world reasoning, saying, "It’s hard to understand how derivative traders at AIG warranted any bonuses, much less $165 million in extra pay. How do they justify this outrage to the taxpayers who are keeping the company afloat?"

Here’s video of the president’s remarks:

Read more about: AIG, Barack Obama, Bonuses, Business, Economy, News, Politics, Video

75 Reader Comments (so far…) Sign In or Register to comment

Patty E
YEAH!  Go after the BOD for their lack of fiduciary duty efforts to the company—-Fire those company leaders who lost money by selling insurance to the people who did not even OWN the property that AIG insured….Do what ALL ‘new owners’ of companies do——null/void all contracts and do it the new-company way—-after all….those contracts were made BEFORE ‘we the people’ bought 80% of it!  and it was even a fire sale!  They lost so much money—-thru their lack of knowing how to do business, apparently—-that they NEEDED our help in order to stay in business and not collapse the rest of the world!  WHY should they be rewarded?  Do they now give bonuses for whoever can create the most LOSSSSS??????
By Patty E on 03/16/2009 3:29 pm
Diana T
I hope the bonuses can be blocked.  Where are these guys’ brains and feelings of decency???
By Diana T on 03/16/2009 3:30 pm
DeBúrca obj
The Bush-Paulson bailout made sure there were no strings or rules attached to the billions given to the banking industry. They gave that money away and there is no way to control what was done with it. All we can hope for is that any money going out since then is watched and controlled.
By DeBúrca obj on 03/16/2009 4:22 pm
Diana T
Think what would have happened to that money if Paulson and Bush had their way with it, or this had happened earlier on in the Bush administration where they would have had more time for sharing amonst their nearest and dearest on Wall Street…
By Diana T on 03/16/2009 5:13 pm
Sue Bow
I thought Geithner & Dodd had something to do with it?
By Sue Bow on 03/18/2009 8:09 am
Lady Gator

Sue B —-Ah yes, those two!  For months the Obama administration and certain members of Congress, have known that AIG was getting ready to pay huge bonuses, while living off this government bailout!  It wasn’t until the money was flowing and news started trickling out to the american public, that the anger and finger pointing started and they have staged this angry protest about yanking the money back!

I think the administration was caught with their pants down - now they have to try to explain why Geithner waited until last Wednesday to call AIG and demand the bonus payments be restructured.  Now, as they were fiddling, the backroom deals, with Dodd in attendance, were being made.  Certainly Dodd isn’t Mr. Innocent!

Just another day in the mixed up - who’s done what today - do you believe this stuff world of the Obama Administration.  Geithner will be the fall guy for this episode.   

You absolutely can not make up this stuff!  If it weren’t so serious it should be a SNL skit!

By Lady Gator on 03/18/2009 1:47 pm
Diana T

DeB,  I am not sure whether or not you were able to see Charlie Rose last night.  He had Hank Greenberg as one of the guests.  Greenburg was the former Chairman/CEO of AIG, and it made for a fascinating conversation.  I am dropping it here in case anyone wants to see it:  http://www.charlierose.com/view/interview/10153  I personally believe that it is incumbent to us as citizens to give the Obama Plan a chance to start working.  You can’t solve this problem in 2 months; indeed it may take years.  And, here when you mention Bush/Paulsen, you are accurate in that Paulson was on board when the original agreement with AIG took place.  We think things are bad now with AIG.  But, think how bad it could have been if Paulson had his way, remembering that his original bail-out plan was 1 page long with no call for accountability or oversight…

 

By Diana T on 03/18/2009 1:17 pm
DeBúrca obj

Diana did you catch Robert Gibb’s comments about the weekend’s Cheney interviews?

"The White House has benefited from no shortage of partisan enemies to attack. On Monday, Dick Cheney played the punching bag role, with spokesman Robert Gibbs calling the former vice president the latest member of the "Republican cabal" to be "trotted out" by the Republican Party.

"I guess Rush Limbaugh was busy so they trotted out the next most popular member of the Republican cabal," said Gibbs. "I will say that the president has made it quite clear that keeping the American people safe and secure is the most serious job he has each and every day. "

I laughed out loud at that one. 

By DeBúrca obj on 03/16/2009 4:41 pm
Diana T
Gibb is quick on the draw…
By Diana T on 03/16/2009 5:09 pm
f p

Treasury Secretary Tim Geithner should direct the Commissioner of Internal Revenue to challenge the AIG bonuses as unreasonable compensation under the Internal Revenue Code. Finding the AIG bonuses to be unreasonable compensation would render them nondeductible for federal tax purposes, and would strengthen potential shareholder derivative suits to recapture The Great AIG Giveaway.

Section 162(a) of the Internal Revenue Code declares:

"There shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, including … a reasonable allowance for salaries or other compensation for personal services actually rendered."
By f p on 03/17/2009 6:53 am
Diana T
Well, I think the whole bunch are looking into the legalities, Beau..the Attorney General’s office in now involved.  It is an untenable situation, and I don’t see how these AIG guys can look at themselves in the mirror.
By Diana T on 03/17/2009 8:03 am
Diana T
Beau,  I just saw this article in Salon.   http://www.salon.com/news/feature/2009/03/17/aig_raises/?source=newsletter
By Diana T on 03/17/2009 8:11 am
Diana T

Beau,

I just gave this to DeB, but I hope you want to see this
Charlie Rose show from last night, in case you missed it.     http://www.charlierose.com/view/interview/10153

By Diana T on 03/18/2009 1:18 pm
L. J
That is the problem with the system! There is no decency. Just greed! They should be thankful they aren’t procecuted. 
By L. J on 03/16/2009 4:03 pm
Community Manager
NOTE:  A little latitude was given in allowing the discussion to go off-topic.  This latitude quickly spiraled down and thus, the sub-thread was removed.  Please stay on-topic of the article.
By Community Manager on 03/16/2009 6:55 pm
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