Insurance giant AIG to pay $165 million in bonuses

[barfo]

Well, since I posted it already in this thread and you ignored it, I'll just assume you're on a purely partisan mission regarding my posts.

Assume what you like, but the fact of the matter is I didn't see that previous post of yours.

barfo

 

[AgentDrazenPetrovic]

apparantly Dodd had the most political contributions from AIG last year.....then he adds something to protect their bonuses.......


outrage!

 

[Denny Crane]

The number is ~75. People who that money was split amongst.

Seems fair to me.

You have to let the company operate and try to make a real go of it with the bailout, and that includes the bonuses.

 

[PapaG]

The number is ~75. People who that money was split amongst.

Seems fair to me.

You have to let the company operate and try to make a real go of it with the bailout, and that includes the bonuses.

It's merely a political ploy. Pols from both parties take wads of money from companies like AIG, bail them out after already protecting the pay of those who fed you money, then raise hell and stomp their feet at how unfair it is when it comes time for the bonus pay.

At this point, the "outraged" pols drag a few execs in front of Congress, wag a stern finger at them, do nothing substantive so as to ensure the now shamed execs still get paid their bonus, and then everybody laughs about it together in a few months at some DC cocktail party paid for by the suckers like you and me.

 

[MARIS61]

AIG should have not only been left to fail, most of them should be prosecuted and jailed. Their assets should be seized as profits from a criminal enterprize.

There are no innocents on Wall Street.

 

[PapaG]

As Charles Gibson said on ABC News Tonight, "what did the President know, and when did he know it?"

Spare the fake outrage, President Obama. It's on the Congressional record that these bonuses were known about and were being analyzed by members of Congress.

http://www.google.com/hostednews/ap/article/ALeqM5hEalVdubp5tGI_-bkLMyNULqCjXgD97040E00

Obama, Congress knew about AIG bonuses for months

By JULIE HIRSCHFELD DAVIS – 2 hours ago

WASHINGTON (AP) — Cue the outrage. For months, the Obama administration and members of Congress have known that insurance giant AIG was getting ready to pay huge bonuses while living off government bailouts. It wasn't until the money was flowing and news was trickling out to the public that official Washington rose up in anger and vowed to yank the money back.

Why the sudden furor, just weeks after Barack Obama's team paid out $30 billion in additional aid to the company? So far, the administration has been unable to match its actions to Obama's tough rhetoric on executive compensation. And Congress has been unable or unwilling to restrict bonuses for bailout recipients, despite some lawmakers' repeated efforts to do so.

The situation has the White House and Treasury Secretary Timothy Geithner on the defensive. The administration was caught off guard Tuesday trying to explain why Geithner had waited until last Wednesday to call AIG chief executive Edward M. Liddy and demand that the bonus payments be restructured.

Neither Obama nor Geithner learned of the impending bonus payments until last week, senior administration officials told The Associated Press late Tuesday, speaking on condition of anonymity about internal discussions.

Publicly, the White House expressed confidence in Geithner — but still made it clear he was the one responsible for how the matter was handled.

"I do know that Secretary Geithner last week engaged with the CEO of AIG to communicate what we thought were outrageous and unacceptable bonuses," White House spokesman Robert Gibbs said. Gibbs declined to provide a timeline that would show when members of the administration — including the president and others at the White House — became aware of the bonuses.

In an interview with The Associated Press, Obama's chief economic adviser Lawrence Summers said: "In the context of what we're doing, Secretary Geithner was notified, he has said, last week. As he reported to the rest of us, he moved aggressively and immediately, aggressively and immediately, to recoup whatever could be legally recouped. He recognized that you can't just abrogate contracts willy-nilly, but he moved to do what could be done."

The bonus problem wasn't new, as many lawmakers and administration officials knew only too well. AIG's plans to pay hundreds of millions of dollars were publicized last fall, when Congress started asking questions about expensive junkets the company had sponsored. A November SEC filing by the company details more than $469 million in "retention payments" to keep prized employees.

Back then, Rep. Elijah E. Cummings, D-Md., began pumping Liddy for information on the bonuses and pressing him to scale them back. "There was outrage brewing already," Cummings said. "I'm saying (to Liddy), 'Be a good citizen. ... Do something about this.' "

Around the same time, outside lawyers hired by the Federal Reserve started reviewing the bonuses as part of a broader look at retention and compensation plans, according to government officials who spoke on condition of anonymity. The outside attorneys examined the possibility of making changes to the company plans — scaling them back, delaying them or rescinding them. They ultimately concluded that even if AIG's bonuses were withheld, the company would probably be sued successfully by its employees and be forced to pay them, the officials said.

People are already starting to jump ship.

 

[Colonel Ronan]

AIG are also the shirt sponsors for the most successful football club in the world. It can't be good for them either.

 

[Denny Crane]

http://blogs.abcnews.com/politicalpunch/2009/03/obama-adminis-1.html

Obama Administration: We Didn't Find Out About AIG Bonuses Until This Month

March 17, 2009 7:18 PM
<!-- Tahman Bradley
--> Sources in the Obama administration Tuesday said that despite previous media reports administration officials did not know until a couple weeks ago that the officials of the controversial AIG Financial Product Division were set to receive $165 million in bonuses on March 13.

It wasn't until Thursday, March 5, 2009, administration sources told ABC News, that officials of the Federal Reserve Bank of New York informed officials of the Treasury Department of the full extent of the $165 million in bonuses pending for the controversial Financial Products Subsidiary.
This was three days after the Obama administration had already announced a new commitment of an additional $30 billion for AIG.

Treasury Secretary Tim Geithner was alerted last Tuesday, March 10; he phoned AIG CEO Edward Liddy on Wednesday evening, March 11, to protest the bonuses, sources told ABC News.

On Thursday, March 12, Secretary Geithner informed a senior White House official about the controversy, aides passed the information on to President Obama later in the day.

How the Obama administration was caught flat-footed by this controversy dates back to last Fall, when the New York Federal Reserve Bank -- then run by Geithner -- stepped in to give AIG a high-interest loan for $85 billion to help prevent the company from going under -- which Lehman Brothers was doing at the time. As part of the deal, AIG CEO Robert Willumstad was replaced by the new CEO, Liddy.

In late October, the $700 billion Troubled Assets Relief Program passed Congress, which includes rules about executive compensation but nothing about retention bonuses.
In November, the Fed and Treasury Department soon began pumping more money into AIG -- $40 billion, to take down the $85 billion credit facility set up by the Federal Reserve Bank of New York.
At this point, an Obama administration official says, Treasury officials generally became aware that AIG had put retention programs in place, but whom they were for and the extent of them were unknown. The New York Fed began studying the compensation policies on the books -- while also making efforts to save banks and rescue the economy. But by then Geithner's nomination was pending and he had recused himself from dealings with AIG.
AIG provided information about the company's myriad compensation packages to the New York Fed, but officials described the information as extremely complex and not easily understood. AIG had more than 100 compensation policies for more than 116,000 employees throughout the world.
In January and February, officials of the Federal Reserve Board, and the Federal Reserve Bank of New York began working on an additional $30 billion support package to prevent an AIG downgrade. On February 23 and 24, government officials were finalizing the details of the USG support package for AIG; on February 25 and 26, officials of AIG presented the package to the rating agencies, along with the Federal Reserve Bank of New York. On February 27, the agencies affirmed AIG's A- rating.
It was only after that process, on February 28, officials said, when officials of the Federal Reserve Bank of New York email their counterparts at the Treasury Department to inform them of several outstanding issues related to compensation for AIG executives, and to give them a heads up that details of the retention program for the Financial Products subsidiary were forthcoming.
On March 2, AIG officials announced record losses for their company, along with the restructuring plans and additional $30 billion in government aid.
Three days later, on March 5, New York Fed officials forwarded to the Treasury Department a summary of AIG’s bonus and retention payment issues, including details of the retention program for officials of the Financial Products. This information included that $165 million in payments were expected that very month, as well as the fact that the contracts were in place in the first quarter of 2008, and so not covered by the limitations in the stimulus bill as articulated by an amendment to the stimulus bill offered by Sen. Chris Dodd, D-Conn.
As ABC News' Capitol Hill Correspondent Jonathan Karl reported, in February, the Senate unanimously approved an amendment restricting bonuses over $100,000 at any company receiving federal bailout funds, but during the closed-door House and Senate negotiations the provision was stripped out and replaced with a measure by Dodd exempting bonuses agreed to prior to the passage of the stimulus bill on February 11, 2009.

On March 9, 2009, the Federal Reserve Bank of New York sent full details and supporting documentation to the Treasury Department about the Financial Products retention program.
One day later, Geithner was told about the $165 million in bonuses.

"Everyone knew that there were retention bonuses on the books," an Obama administration source said, "but no one (in the Obama administration) knew about the $165 million for the Financial Products division" until March 5.

Geithner called Liddy on Wednesday, March 11, Liddy -- appointed to run AIG September 2008 -- told the Treasury Secretary that he knew about the bonuses and had already talked to company lawyers to try to end them.

But, Liddy said, he'd been told that going after the bonuses -- for work from 2008 -- would actually cost the government more money because of resulting lawsuits.

The Treasury Secretary expressed concern, pointed out that AIG also had 2009 retention bonuses set up, not to mention $121.5 million in executive bonuses that Geithner wanted trimmed.

On Thursday and Friday, administration sources said, Geithner urged Treasury Department lawyers to try to figure out a way to block the bonuses. But the lawyers ultimately came to agree with AIG's lawyers; that their hands were tied.

Liddy and Geithner talked again on Friday, the day the $165 million in retention bonuses were being cut, and the Treasury Secretary Geithner acknowledged he did didn't think he could block the payments going out the door.

But he told Liddy he was going to make efforts to, at a minimum, recoup that money as part of the agreement for the pending $30 billion the government announced in aid for AIG on March 2. Liddy agreed to trim or reduce executive compensation for the top 47 officers of the company, to reduce and renegotiate 2009 bonuses -- tying them to performance, specifically to what officers are doing to unwind the company.

Geithner asked Liddy to codify their agreement in a letter, which Liddy sent the Treasury Secretary on Saturday. Throughout the weekend, Treasury Department and White House lawyers explored various options to see if they could block the bonuses, as they continue to do so today, aides said.
-- jpt

 

[Denny Crane]

LOL

Liars.

 

[maxiep]

LOL

Liars.

What I find amazing is the opinion they seem to have of the American people. That they can lie and think people will just believe them because President Obama is such a terrific orator is a joke. After the eight years of misleading the American people that the Democrats accused the Bush Administration of, it's stunning how such a group of so-called intelligent people believe they can pull the same thing.

 

[PapaG]

What I find amazing is the opinion they seem to have of the American people. That they can lie and think people will just believe them because President Obama is such a terrific orator is a joke. After the eight years of misleading the American people that the Democrats accused the Bush Administration of, it's stunning how such a group of so-called intelligent people believe they can pull the same thing.

I don't think they care. In all the confusion, we've quadrupled the deficit, doubled the debt, and are now nationalizing domestic industries while sending billions overseas via companies like AIG. Plus, foreign policy appears to be an afterthought at this point in time. Has Obama done anything other than to insult the Brits and push back the Brazilian President's visit?

All this in less than two months. It's really quite an accomplishment. Breathtakingly bold or incompetent. Or both.

 

[maxiep]

I don't think they care. In all the confusion, we've quadrupled the deficit, doubled the debt, and are now nationalizing domestic industries while sending billions overseas via companies like AIG. Plus, foreign policy appears to be an afterthought at this point in time. Has Obama done anything other than to insult the Brits and push back the Brazilian President's visit?

All this in less than two months. It's really quite an accomplishment. Breathtakingly bold or incompetent. Or both.

I really thought he was going to be another Jimmy Carter. So far, he's making Carter look like George Washington.

 

[Denny Crane]

I don't think they care. In all the confusion, we've quadrupled the deficit, doubled the debt, and are now nationalizing domestic industries while sending billions overseas via companies like AIG. Plus, foreign policy appears to be an afterthought at this point in time. Has Obama done anything other than to insult the Brits and push back the Brazilian President's visit?

All this in less than two months. It's really quite an accomplishment. Breathtakingly bold or incompetent. Or both.

<tt>Pentagon readies big cuts in weapons...

Medvedev announces plan to rearm Russia... </tt>

 

[The_Lillard_King]

Turns out that 73 poeple got bonuses of over 1 million and 52 people got bonuses who have already left the company.

AIG is ripping off the American people and gov't needs to step in and stop this.

 

[maxiep]

Turns out that 73 poeple got bonuses of over 1 million and 52 people got bonuses who have already left the company.

AIG is ripping off the American people and gov't needs to step in and stop this.

Why? Does getting a bonus of over $1MM mean you're evil? As for bonuses, lots of people on Wall Street get them and move to other companies. I moved to Goldman Sachs from First Boston the same week I was told what my bonus would be. If I worked for AIG and I were worth anything, I'd be jumping ship to another firm.

 

[PapaG]

Turns out that 73 poeple got bonuses of over 1 million and 52 people got bonuses who have already left the company.

AIG is ripping off the American people and gov't needs to step in and stop this.

AIG isn't where people should be placing blame.

 

[The_Lillard_King]

Why? Does getting a bonus of over $1MM mean you're evil? As for bonuses, lots of people on Wall Street get them and move to other companies. I moved to Goldman Sachs from First Boston the same week I was told what my bonus would be. If I worked for AIG and I were worth anything, I'd be jumping ship to another firm.

Giving bonus of over 1 mil doesn't make a company evil. I don't care how much a company gives as bonuses. But when a company declares they are going under and asks for gov't assitance to stay afloat . . . that is when I start caring.

A million dollar bonus (73 of them) from taxpayer money is a problem. AIG saying they have to give bonuses to retain top talent and then later learn the bonuses are going to employees who have already left the company is a problem.

I don't trust a thing AIG brass represents anymore and am shocked they can drop bonuses like that with US taxpayer money while declaring they will go bankrupt unless the gov't helps.

 

[The_Lillard_King]

AIG isn't where people should be placing blame.

I know, for you it is all about placing the blame on Obama. Stock market, economy, AIG bonus give away . . . it's all Obama's fault in your eyes.

 

[HailBlazers]

I know, for you it is all about placing the blame on Obama. Stock market, economy, AIG bonus give away . . . it's all Obama's fault in your eyes.

WRONG. The blame goes to congress who pushed the housing investment act in 1994 that pushed for people to get mortgages that can't afford them. The blame goes to congress for changing the rules in 1998 and letting investment banks play by the same rules as financial ones causing them to balloon beyond control. Furthermore, The blame goes to congress for taking the statute out of the 2009 stimulus bill that would have prevented these bonuses for being claimed in the first place!

Oh and now they wanna make them give it back? Sorry too little too late Pelosi and congress...

 

[AgentDrazenPetrovic]

turn those machines back on!!!!

 

[PapaG]

I know, for you it is all about placing the blame on Obama. Stock market, economy, AIG bonus give away . . . it's all Obama's fault in your eyes.

Dodd wrote the provision protecting these bonuses and Obama signed the bill. Am I missing something?

 

[Denny Crane]

Dodd wrote the provision protecting these bonuses and Obama signed the bill. Am I missing something?

Dodd was the biggest recipient of campaign donations from AIG, too.

You missed that