AIG Rec'd $170 billion in Bailout /Giving$165 million in bonuses

[Said1]

Interestingly, Bush's stimulus law authorized the bonus payments but Republicans today are blaming Obama for it.

Sadly, it was Clinton who approved several deregulation that got AIG et al into their current troubles. If they would have stuck with what they were good at ie: real insurance, they might not be in this mess. Those deregulation would have happened irregardless, but still, if you're going to point the finger at someone.

 

[Said1]

These reports never identify the recipients of these bonuses and under what circumstances they were paid.

They're probably BS bonuses, lent back to the company.

 

[petros]

All it takes is ONE person to go to his or her local cop shop and press fraud charges. If this money is for stimulus and it's going as bonuses the bonuses are fraudulent.

 

[petros]

BTW...there wasn't a crisis until the TV said there was one.

 

[EagleSmack]

Blaming Bush is H.S. This is on Obama's watch. Thankfully he is doing his best (I hope) to stop this.

This is taxpayer money and to have ONE DIME of it go to executive bonuses is a slap in the face to the taxpayer. I do not care what is in their contract. If they are going to throw contracts in the face of the taxpayer than don't give them a dime and do everything to get that money back and see how AIG does. AIG has done nothing but go on as business as usual since they got promised a hefty bail out. Weekend Spa vacations, a quail hunting trip to England... and now paying bonuses.

EF YOU AIG!

 

[Ron in Regina]

AIG Rec'd $170 billion in Bailout /Giving$165 million in bonuses

I realize (well...I suspect, anyway) that Obama was elected due to
the fact that he was about as different from Bush & the Republicans
as possible. The strategy at this point might be to take a page out of
a book that Obama might not want to open. How about this:

There are enough goofy/scary laws on the books, that maybe in the
National interests, the Department of Homeland Security should
become involved in this, and invoke some obscure anti-terrorism
law or something similar in name and scary sounding....and role into
the AIG offices with 100 guys in black suits, wrap-around sunglasses,
ear-buds, and government issue haircuts....and request/take the info
needed to determine:
1) who actually received these retention bonus's
2) where they involved in AIG's crash in the first place
3) who actually wrote these contracts in the first place
4) was there anything illegal and fraudulent in this whole situation

If any wrongdoing is determined to have taken place, then some
options should be issued, the choices could be:
1) a public hanging, right on Wall Street, from the closest street sign
2) a retirement to a life in Gitmo...I here they'll have some vacancies
3) immediately return the "retention" bonus's at a rate of 200%

I guess this is a tad extreme, but it felt great just typing this out...:lol:
Weeding these people out of any company receiving money form the
taxpayers can only make the company healthier and stronger. 8O8O8O

 

[Twila]

Ron in Regina for President!!!!!!!!!!!! I'd vote for ya!

 

[lone wolf]

Is it any wonder my insurance premiums doubled? I suspect Aviva is just as self-inflating as AIG....

 

[petros]

Ron - I gotta shed some light on something about Obama. His entire staff is from Wall Street. The more I look at what is happening in the US right now, the more it looks like a silent coup by Wall Street. You'd be hanging the entire regime as well as the money men. I dooubt there is an election promise that hasn't already been broken except for the promise of hard times for the the average Debtmerican.

 

[petros]

Is it any wonder my insurance premiums doubled? I suspect Aviva is just as self-inflating as AIG....

BINGO...AIG's income is based on premiums so why the hell do they need a bail out. This is all a scam like never seen before.

 

[Ron in Regina]

AIG Rec'd $170 billion in Bailout /Giving$165 million in bonuses

Ron - I gotta shed some light on something about Obama. His entire staff is from Wall Street. The more I look at what is happening in the US right now, the more it looks like a silent coup by Wall Street. You'd be hanging the entire regime as well as the money men. I dooubt there is an election promise that hasn't already been broken except for the promise of hard times for the the average Debtmerican.

So you're saying this pipe dream of mine will never happen??? 8O:--(
Or are you saying that we're going to need a lot more rope??? :lol::lol::lol:

 

[petros]

A lot more rope.

 

[Said1]

BINGO...AIG's income is based on premiums so why the hell do they need a bail out. This is all a scam like never seen before.

Because of the CDSs they sold - they derive their value from credit risks on things like underlying loans - subprime loans that are securitized, pooled and repacked with fancy names like 'mortgage backed securities'. An mbs derives value from subprime loans. If someone defaults on their loan, the mbs is written down and the CDS seller has to pay out. Or something like that - I think the value of all payouts globally (liquidation of CDSs) with in the trillions. The owner of the MBSs loses as well.

 

[petros]

Because of the CDSs they sold - they derive their value from credit risks on things like underlying loans - subprime loans that are securitized, pooled and repacked with fancy names like 'mortgage backed securities'. An mbs derives value from subprime loans. If someone defaults on their loan, the mbs is written down and the CDS seller has to pay out. Or something like that - I think the value of all payouts globally (liquidation of CDSs) with in the trillions. The owner of the MBSs loses as well.

And thoese "mortgage backed securities" with false bond ratings weren't a scam in the first place? It is still all fraud just under another name.

 

[Said1]

And thoese "mortgage backed securities" weren't a scam in the first place? It is still all fraud just under another name.

No doubt, but in today's markets, the impact of the amount CDSs written on your assets is like financial suicide.

 

[petros]

In yesterdays market just as much as today it is fraud and these companies deserve criminal punishment by the public.

 

[Said1]

In yesterdays market just as much as today it is fraud and these companies deserve criminal punishment by the public.

You said that already and it should be obvious I was not addressing that point. AIGs troubles go beyond insurance preimums, to areas of finance where they have no business. As I said, their troubles are mostly with CDSs and other collateralized debt obligations they 'insured'. The thin is, it's not 'real' insurance, more like hedging - or better, betting. They insured some super sized corporate debt risks all related to the US housing market - and we all know what happened there.

 

[Cannuck]

He ultimately concluded, however, that the Obama administration could do little to stop all bonuses, because the firm was under contract with its employees to make the payments.

I'm a little confused. If you have a contract that says these must be paid, how are they "bonuses"? It was my understanding that bonuses are given in addition to what is due. If these payments are part of their contract then they are not bonuses and I really don't understand what the hubbub is about. Calling a horse a chicken doesn't mean it will lay you an egg.

 

[petros]

You said that already and it should be obvious I was not addressing that point. AIGs troubles go beyond insurance preimums, to areas of finance where they have no business. As I said, their troubles are mostly with CDSs and other collateralized debt obligations they 'insured'. The thin is, it's not 'real' insurance, more like hedging - or better, betting. They insured some super sized corporate debt risks all related to the US housing market - and we all know what happened there.

So then what makes their illegal troubles my troubles? That's like paying back what a larcenist stole. It's not our responsibility.

 

[Said1]

So then what makes there illegal troubles my troubles?

How are their troubles illegal, specifically? If you answered it already, just direct me to the post.