March 17, 2009

Wedgies or Beheadings for AIG?


O brave new world that has such outrages in it! For wisdom and clarity on the chump-change AIG bonus issue that has so many pairs of bipartisan panties in a twist, I recommend a sane man,TigerHawk, on two key points:
1) What did they know and when did they know it?

My speculation: The Obama administration, including the president or his political staff, has known about these bonuses for quite some time, and the letters from Liddy to the Treasury were requested by the government to provide cover. I further speculate that neither the Treasury nor Liddy wanted this issue to explode until after the bonuses were paid precisely because they could not afford for the people they need to unwind the losing trades to quit before their work is done....

2) What is to be done.
"You cannot make people miserable and not pay them. You have to choose or they will quit and we will not have the skilled people we need to unwind this mess. So either torture, humiliate, and investigate the hundreds of people at AIG and other financial institutions -- none of whom actually created these problems -- who are struggling through all of this and grit your teeth and pay them, or leave them alone to toil in quiet ignominy and screw them out of most of their contracted compensation. For many people, one or the other will suffice, but not both."

Posted by Vanderleun at March 17, 2009 12:58 PM
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"It is impossible to speak in such a way that you cannot be misunderstood." -- Karl Popper N.B.: Comments are moderated and may not appear immediately. Comments that exceed the obscenity or stupidity limits will be either edited or expunged.

You've hit the nail right square on the head. Geithner, the tax cheat, wrote the original AIG bailout before becoming keeper of the royal treasury. Then they went and did it a second time, with no conditions attached. Chris Dodd even had a little tidbit added to the "stimulus" that said all contracts prior to the "stimulus" would be honored.
Dodd received $100,000 in campaign contributions from AIG. Guess who was the runner up……..the messiah himself.
And these people are acting out their outrage at the sight of any camera or microphone. This is the change that all of those idiots voted for? We're totally doomed.

Posted by: Bobham at March 18, 2009 9:56 AM