The Phony AIG Bonus Scandal Outrage

Reader Comments
Back to blog

Yes, the old guard is back and I felt let down as never before. I had faith in Obahma back in February 2007 when he just showed up in the news. I saw that big smile and said "here's an honest guy, might just be the only one in D.C." He was the first dem for president I ever voted for and may be the last. I voted for Floio for NJ (again, the first and last dem for Gov in NJ for me) and this is turning out the same way.

Pete of NJ 6:39PM March 18, 2009

The hearing in Washington is part of the ongoing "bread and circus" of the TARP debacle. Frankly, it strikes as un-American to criminalize people who recieved bonuses as part of their employment contracts; yet, the very government that gave AIG some $170 billion dollars had to pull teeth (allegedly) to determine how that money was spent. We know now that most of that money has been spent paying off counterparties--which means, in the parlance of the street, that AIG is functioning as a bagman.
Why wasn't Paulson and all of the people who sat in a room and made decesions about this TARP program asked to testify? And what about our elected officials who voted for this TARP money in the first place which has far less transparency that someone recieving a welfare check from the same government?
I voted for President Obama and, sad to say, when I saw Rubin, Summers, and others who are part of the old guard acting as economic advisors, well, I knew the ballgame was up. Totally.
Wall Street, as a whole, did their thing in a climate that was a financial Wild, Wild West. Washington looked the other way. Now the nation and the world has to pay for it. People with low-paying jobs (or no jobs) were able to buy homes (and furnish them) as if they were living out Gilded Age fantasies. Add to that how the basic paycheck of working Americans does not pay for very much and these are the ingredients for social unrest in this country.
Washington does not get any of this and I am not sorry, at all, because certain bankers do not have enough money to pay for three homes.

THINK of NY 5:01PM March 18, 2009

The hearing in Washington is part of the ongoing "bread and circus" of the TARP debacle. Frankly, it strikes as un-American to criminalize people who recieved bonuses as part of their employment contracts; yet, the very government that gave AIG some $170 billion dollars had to pull teeth (allegedly) to determine how that money was spent. We know now that most of that money has been spent paying off counterparties--which means, in the parlance of the street, that AIG is functioning as a bagman.
Why wasn't Paulson and all of the people who sat in a room and made decesions about this TARP program asked to testify? And what about our elected officials who voted for this TARP money in the first place which has far less transparency that someone recieving a welfare check from the same government?
I voted for President Obama and, sad to say, when I saw Rubin, Summers, and others who are part of the old guard acting as economic advisors, well, I knew the ballgame was up. Totally.
Wall Street, as a whole, did their thing in a climate that was a financial Wild, Wild West. Washington looked the other way. Now the nation and the world has to pay for it. People with low-paying jobs (or no jobs) were able to buy homes (and furnish them) as if they were living out Gilded Age fantasies. Add to that how the basic paycheck of working Americans does not pay for very much and these are the ingredients for social unrest in this country.
Washington does not get any of this and I am not sorry, at all, because certain bankers do not have enough money to pay for three homes.

THINK of NY 5:01PM March 18, 2009

The whole AIG bonus thing is a red herring. AIG gives politicians something to kick around for the people's amusement - it's a distraction, nothing more.
That's how Wall Street works - base salary is trash, but they get guaranteed bonuses. If Congress doesn't like it, they probably should have looked into it BEFORE buying 80% of the company.
So they get bonuses paid out of $165 billion. Big deal. That's a drop in the bucket compared to the TRILLIONS being tossed around while we're focused on one convenient whipping boy. Who's watching the lion's share of the money, while everyone kicks AIG?

Rich of CO 3:36PM March 18, 2009

I believe it is a bit of a joke to suggest that Tim Geithner resign or be fired when he's working with inadequate help. As you said, pretty much working by himself. One cannot expect, in my opinion, for him to easily fix things. I'm giving him the benefit of the doubt, as disappointing as his plans so far may be.
I'm not sure about being outraged by the amount paid to foreign banks. After all, they are part of the financial crisis and MAYBE without the payments, they could be facing a bigger liquidity problem. It is not just a problem for banks in the US. True, it would help if the money were instead split among US banks. But I don't believe it makes the overall picture look better. Maybe the US would be better, but the EU could be worse.

Adriaan of IL 2:16PM March 18, 2009

Whenever things got too hot for GW, all he had to do was point away from the White House and yell "Look! GAY people!" And the herd ran away.
So now when things get too hot the new administration yells, "Look! Wall Street BONUSES!"...

RJ Shelton of NC 12:57PM March 18, 2009

"More government rules also mean more effort to sidestep them, as people did with tax shelters back in the 1970s"
So we shouldn't have laws because people break them? As usual, your reasoning is penetrating, James. Why not try to avoid the facile for once?

Dr Zen 7:14PM March 17, 2009

So is Obama and the Congress really saying that they just pumped BILLIONS of taxpayers dollars into AIG without first taking a look where that money is going!? Do they (Obama and Congress) think American people are idiots who can't use their brains!? Do they really expect us to believe that they just handed AIG a check for billions of dollars without having a clue as to how the company is going to or can use that money?
This is absurd! What we should be outraged over here is Mr. President and the worthless Congresspeople who sit up there all high and lofty acting like innocent spectators when they themselves had orchestrated this disaster! It's high time we get TERM LIMITS for Senators and House representatives! We've had enough of those idiots wasting our money with 0 consequences or any hope of them ever stopping! This is all smoke and mirrors to take our attention away from socialistic tendencies by this government and their desire to assert more and more control over our private life!
ENOUGH!

Baffled of TX 4:07PM March 17, 2009