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Amid AIG Furor, Dodd Tries to Undo Bonus Protections He Put In

Discussion in 'Political Zone' started by trickblue, Mar 17, 2009.

  1. trickblue

    trickblue Old Testament... Zone Supporter

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    Link

    Amid AIG Furor, Dodd Tries to Undo Bonus Protections He Put In

    Rich Edson
    FOXBusiness


    Senator Chris Dodd (D-Conn.) on Monday night floated the idea of taxing American International Group (AIG: 0.9499, 0.1698, 21.77%) bonus recipients so the government could recoup the $450 million the company is paying to employees in its financial products unit. Within hours, the idea spread to both houses of Congress, with lawmakers proposing an AIG bonus tax.

    While the Senate constructed the $787 billion stimulus last month, Dodd unexpectedly added an executive-compensation restriction to the bill. That amendment provides an “exception for contractually obligated bonuses agreed on before Feb. 11, 2009,” which exempts the very AIG bonuses Dodd and others are seeking to tax. The amendment is in the final version and is law.

    Also, Sen. Dodd was AIG’s largest single recipient of campaign donations during the 2008 election cycle with $103,100, according to opensecrets.org.

    Dodd’s office did not immediately return a request for comment.

    One of AIG Financial Products’ largest offices is based in Connecticut.

    Dodd Amendment Rules:
    • Crack down on bonuses, retention awards and incentive compensation: Bonuses can only be paid in the form of long-term restricted stock, equal to no greater than 1/3 of total annual compensation, and will vest only when taxpayer funds are repaid. There is an exception for contractually obligated bonuses agreed on before Feb. 11, 2009.
    • For institutions that received assistance totaling less than $25 million, the bonus restriction applies to the highest compensated employee; $25 million to $250 million, applies to the top five employees; $250 million to $500 million, applies to the senior executive officers and the next top 10 employees; and more than $500 million applies to the senior executive officers and the next top 20 employees (or such higher number as the Secretary determines is in the public interest).
    [IMG]
  2. trickblue

    trickblue Old Testament... Zone Supporter

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    From another article...
    Link

    "I warned them this would be met with an unprecedented level of outrage," Sen. Christopher J. Dodd (D-Conn.), the chairman of the banking committee and part of a group of senators who pressed Treasury Secretary Timothy F. Geithner to stop the bonuses, said yesterday.

    :rolleyes:
  3. JBond

    JBond Well-Known Member

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    This could go hand in hand with the Barney Frank and Chris Dodd incompetence thread.

    The idiot Dodd specifically guaranteed the bonuses in the Pork Bill. Gietner approved the bonuses while working for the fed reserve and Obama signed them into law. What a pack of goofballs.

    Now because of Obama's fear mongering, grandstanding and lying yesterday the folks working for AIG are in fear of their lives.

    Obama is in so far over his head, it's sad. He obviously has no clue to what he is doing or what he even has signed into law. Dumbest president ever?
  4. ConcordCowboy

    ConcordCowboy Mr. Buckeye

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    What a fricking Idiot.
  5. trickblue

    trickblue Old Testament... Zone Supporter

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    He may be in trouble come 2010...
  6. ConcordCowboy

    ConcordCowboy Mr. Buckeye

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    He should be.
  7. trickblue

    trickblue Old Testament... Zone Supporter

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    I agree... he is one of those that should have been gone long ago... and there are many more, on both sides of the aisle...
  8. Yeagermeister

    Yeagermeister Active Member

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    More of the usual do as I say not as I do
  9. JBond

    JBond Well-Known Member

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    Sometimes it takes a gigantic fool like Obama to wake up the public ala Jimmy Carter preceding Reagan.
  10. ThaBigP

    ThaBigP New Member

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    I really want people to understand the wickedness in which this recent spastic episode of phoney outrage is steeped:

    First, AIG was bailed out to prevent various banks, both US and foreign who were owed payouts by AIG, from faltering.

    So far, of the approx. 170 Billion paid to AIG, about 45 Billion has been paid out to US banks, and 58-odd Billion has been paid out to foreign banks. AIG was a convenient middle-man to salvage, as it would eliminate the need for the public debate regarding bailouts of foreign banks (which would most surely not go over well with the American people). We're just saving an American insurance company after all. Nevermind that they are, in effect, serving as a money-laundering facility to avoid having the "bailout foreign banks" debate.

    These obligated payouts were contracts, after all. And contracts are legally binding and cannot be modified or dismissed outside of bankruptcy (that is, without landing your arse in court when you are sued).

    Contracts are so important, after all, that GM and Chrysler were not allowed to file Chapter 11. Doing so would have afforded those companies the opportunity to renegotiate their UAW contracts. This cannot be allowed to stand. So they were given various "bridge to nowhere" loans to avoid Chapter 11.

    Furthermore, when the Democrats started ramming through compensation restrictions, they had UAW and other union contracts in mind. So close in mind that Dodd specifically exempted pre-existing compensation contracts from those limits. To protect those precious union contracts.

    Who, by the way, owns and runs AIG? How could the government be caught by surprise? Perhaps the owner of AIG should be called before Congress to explain why they did not reveal these bonuses until after-the-fact? Oh, wait. Uncle Sam owns 80% of AIG....and AIG is run by a government appointee... So that would mean Congress must call Congress before Congress to explain to Congress why Congress did not tell Congress about the bonuses Congress was going to pay out until after-the fact. Oh, but wait...they DID discuss these bonuses...almost a year ago! The Fed made a determination that there was no legal way to avoid paying out these contractually obligated bonuses...they researched long ago any means by which they could avoid paying them.

    But now we have the phoney, mock, sudden "outrage" that AIG would "sneak" the bonuses past their noses. Methinks they are waiving a red-herring to distract from the billions, nay, trillions is new spending by Uncle Sam we simply don't have to spend. Perhaps also trying to hide the fact that over 50 billion of our dollars have been funnelled to foriegn banks using AIG as a convenient conduit. All contracts are equal...but some are more equal than others.

    And, we now have ex-post-facto tax law on the table...a proposed 95% tax specifically targeted at AIG execs after-the-fact.

    How could this have all been avoided? Oh, that's right. Chapter 11 or Chapter 7. But, we couldn't do that. Or we might have had to give 40+ billion to US banks, and 50+ billion to foreign banks. Good thing that never had to happen...
  11. DFWJC

    DFWJC Well-Known Member Zone Supporter

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    This irks the hell out of me on so many levels. Just as ThaBigP said above, you have the foxes guarding the henhouse.

    But on a different level, think about this Washington phony outrage for a minute. Obviously the bonus should not be paid out, but taking the obvious aside, think this through: we are talking 165 million, yet Obama, Pelosi and crew just allowed billions of complete and total pork to be attached to the spending bill...without even a real debate. The thing was basically signed by Barry behind closed doors.
  12. Dallas

    Dallas Old bulletproof tiger

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    Some of our users are knocking this out of the park.


    165million outrage? Hey look at me over here. Look at this outrage I am spouting. Meanwhile I am spending billions and billions.

    More 165million outrage. More 165 million outrage.


    Quick - lets spend another 420billion fast, while they aren't looking.


    FOOLS!
  13. JBond

    JBond Well-Known Member

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    Yes they are. Thus the lack of participation from the the usual suspects. Everyone will figure out the game sooner or later. Some of are just a bit ahead the rest of the class.
  14. Jordan55

    Jordan55 Active Member

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    Stole this one from another blog

    I don’t understand why AIG doesn’t just borrow the same approach Obama took to defending the $410B pork-laden spending bill he just signed in private. Seeing as how the bonuses were earned for work done in 2008, AIG should just call the bonuses, “Last year’s business” and make all kinds of lofty promises about how now, for real, going forward, now that they’re paid, AIG is really going to clamp down on companies abusing bonuses because paying them is despicable.
  15. SuspectCorner

    SuspectCorner Bromo

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    Dodd may be the posterboy for term limits.
  16. tyke1doe

    tyke1doe Well-Known Member

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    And sometimes it takes a gigantic fool like George W. to give us presidents like Obama. ;)
  17. Dallas

    Dallas Old bulletproof tiger

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    So basically tyke is saying he is all happy happy goose goose over Obama.


    We get it.


    Hey - shouldn't you be looking for a new job? Newspapers are on the out's you know. ;)
  18. tyke1doe

    tyke1doe Well-Known Member

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    Never said I agree with everything Obama does. But if another poster is going to call Obama a fool and then reference Carter, then he needs to be reminded that a fool preceded Obama ... George W. Bush.

    Now do you get it? ;)


    What does this have to do with anything? :confused:

    Oh, that's right. The one-up game. :laugh1:
  19. ThaBigP

    ThaBigP New Member

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    So to complete the analogy, I have to point out that the incompetent Ford preceeded the worse Carter? OK. Done.
  20. burmafrd

    burmafrd Well-Known Member

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    The only fools here are the libs that keep falling for nitwits like Dukakis, Carter, Gore and Obama.

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