This is why you let them file for Bankruptcy
According to the Washington Post, President Obama is getting a lot of grief for the bonuses that were paid out to AIG executives. I think that's stupid.
We gave them a bucket full of money so they could operate in the black. If they were really operating in the black, those executives would have recieved those bonuses. And did those executives recieving bonuses do anything wrong? Do they even work in the part of AIG that traded securities and derivitives? If not, then they didn't do anything wrong and they are entitled to them.
However, if AIG had gone into bankruptcy, they wouldn't have paid out any bonsues. They would have had to follow very strict, judge approved rules regarding payments and restructing. Powerline talked about this yesterday.
No one should be irritated about the $165M bonuses that were paid out to AIG employees, most of whom I assume are Americans. What they should be irritated about is the $170 billion that AIG recieved that went to foreign countries. So bailout money that was meant to get credit flowing and allow AIG to continue giving out credit in this country, went to help other countries. That's what we should be irritated about.
But no ones talking about that.
But really, none of this would have happened if they had let AIG file for chapter 11. Even if the government wanted to infuse them with capitol to pay off debts at THAT point, at least there were clear cut rules that AIG would have to follow. There were no rules tied to the $170B of free money they recieved, and this is just what we are going to have to deal with.
He (and former President Bush) gave our money away with no guidelines on how it was to be spent. So AIG met their contractual obligations.
And from what I know of bonuses (and I know a little) - they are awarded based on merit and bench marks. So executives at AIG that qualified for bonsues would have had to hit certain criteria in order to get them. Whether that was 10% growth in their group, or this much sales reached, or whatever. But I have full faith that the people that are recieving them earned them.
Updated
According to the Attorney General of NY, they weren't merit based, and 11 people who recieved checks on Friday aren't even employed at AIG anymore. Something smells in Denmark.
I also have full faith that if the federal government had left them hell alone and not given them a dime, they may or may not have had to file for bankruptcy, and if they had ... none of those executives would recieve a penny of those bonsuses.
But as regards the Washington Post ... I honestly don't think people are any more angry about that than they are about anything else the President has done. People just don't seem to pay attention. Now the reporters on the other hand ...
And really, Obama cant be feeling too bad. He's hosting 2 - count them 2 - St. Patty's parties today at the White House. Recession? What Recession? Just your tax dollars at work.
We gave them a bucket full of money so they could operate in the black. If they were really operating in the black, those executives would have recieved those bonuses. And did those executives recieving bonuses do anything wrong? Do they even work in the part of AIG that traded securities and derivitives? If not, then they didn't do anything wrong and they are entitled to them.
However, if AIG had gone into bankruptcy, they wouldn't have paid out any bonsues. They would have had to follow very strict, judge approved rules regarding payments and restructing. Powerline talked about this yesterday.
No one should be irritated about the $165M bonuses that were paid out to AIG employees, most of whom I assume are Americans. What they should be irritated about is the $170 billion that AIG recieved that went to foreign countries. So bailout money that was meant to get credit flowing and allow AIG to continue giving out credit in this country, went to help other countries. That's what we should be irritated about.
But no ones talking about that.
But really, none of this would have happened if they had let AIG file for chapter 11. Even if the government wanted to infuse them with capitol to pay off debts at THAT point, at least there were clear cut rules that AIG would have to follow. There were no rules tied to the $170B of free money they recieved, and this is just what we are going to have to deal with.
He (and former President Bush) gave our money away with no guidelines on how it was to be spent. So AIG met their contractual obligations.
And from what I know of bonuses (and I know a little) - they are awarded based on merit and bench marks. So executives at AIG that qualified for bonsues would have had to hit certain criteria in order to get them. Whether that was 10% growth in their group, or this much sales reached, or whatever. But I have full faith that the people that are recieving them earned them.
Updated
According to the Attorney General of NY, they weren't merit based, and 11 people who recieved checks on Friday aren't even employed at AIG anymore. Something smells in Denmark.
I also have full faith that if the federal government had left them hell alone and not given them a dime, they may or may not have had to file for bankruptcy, and if they had ... none of those executives would recieve a penny of those bonsuses.
But as regards the Washington Post ... I honestly don't think people are any more angry about that than they are about anything else the President has done. People just don't seem to pay attention. Now the reporters on the other hand ...
And really, Obama cant be feeling too bad. He's hosting 2 - count them 2 - St. Patty's parties today at the White House. Recession? What Recession? Just your tax dollars at work.
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