President Obama Orders Treasury Chief to Try to Block A.I.G. Bonuses

[spanone]

WASHINGTON — President Obama vowed to try to stop the faltering insurance giant American International Group from paying out hundreds of millions of dollars in bonuses to executives, as the administration scrambled to avert a populist backlash against banks and Wall Street that could complicate Mr. Obama’s economic recovery agenda.

“In the last six months, A.I.G. has received substantial sums from the U.S. Treasury,” Mr. Obama said. He added that he had asked Treasury Secretary Timothy F. Geithner “to use that leverage and pursue every single legal avenue to block these bonuses and make the American taxpayers whole.”

In strongly-worded remarks delivered in the White House East Room before small business owners, Mr. Obama called A.I.G. “a corporation that finds itself in financial distress due to recklessness and greed.”

“Under these circumstances, it’s hard to understand how derivative traders at A.I.G. warranted any bonuses at all, much less $165 million in extra pay,” Mr. Obama said. “How do they justify this outrage to the taxpayers who are keeping the company afloat?”

White House officials said that the administration is not looking to take A.I.G. to court to stop the company from paying out the bonuses. But they said the Treasury Department would be trying to figure out what they can do to block A.I.G. from making the payments within the legal confines of A.I.G.’s contractual obligations to the executives.
http://www.nytimes.com/2009/03/17/us/politics/17obama.html?hp=&pagewanted=print

[rocktivity]

1. And if they can't be blocked,

levy a 100% tax! CUE THE VONAGE THEME!

:woohoo:
rocktivity

[derby378]

2. Good luck with that...

Obama's been in office less than two months, but AIG has been planning for this contingency for how long?

All said, I'm glad Obama is at least talking about holding them accountable, but right now it's just talk.

[Democrats_win]

3. Bonuses are wrong, but I fear this is just a big "nothing" in the long run.

We should ask what's really important. Instead, stop all foreclosures now! Personally, I'd like to see him make credit cards illegal retroactive to 1970. They never should have been legal in the first place and the government has played a part in this.

Let the bankers have their unearned bonuses, but help we the people. That's the duty of government.

[KittyWampus]

5. it's important because AIG said "fuck you" to Obama/Geithner. Like children, the CEO's are testing

limits to see how far they can go and what they can get away with.

Further, if AIG is allowed to "get away" with this, then the next Bank or Corporation will insist on being allowed to do the same.

[annabanana]

4. They're dancing as fast as they can.... Chuck Todd

just got on saying that the Government might not be able to do anything becasue AIG got the money from the Fed, and not from the treasury and that "technically" it's not taxpayer money...

Isn't this the "spirit of the law" thing that the President was talking about?

I tell you, AIG had better start paying attention... they may need the government to protect them from pitchforks & torches, you know?

[anonymous171]

If I were Obama, I would make an example out of AIG by refusing to offer protection.

Let their offices burn. That would send a message to Wall Street.

[KittyWampus]

7. I agree. AIG just tested Obama and it's up to him to enforce discipline. It's now or never.

Just like a parent with a pre-teen.

[depakid]

11. That's exactly what's going on

To which I say:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=132&topic_id=8264971&mesg_id=8265035

[anonymous171]

12. Good idea. nt

[SPedigrees]

6. The unasked, unanswered question..

why were restrictions not placed on the bailout money *before* it was handed over?

[SharonAnn]

9. As the previous president. He may know why there were no restrictions.

[northernlights]

8. there is no trying

there is only doing, or not doing.

-Yoda

[Robbien]

10. Obama should be blocking the HUNDREDS OF BILLIONS AIG gave to banks

The propaganda mill is going out full force today trying to direct everyone's attention to the bonuses.

AIG gave over a hundred billion dollars to banksters.

Less than a half billion went on bonuses.

Obama screams about the bonuses.

Huh?

[4lbs]

13. It's a nice feel-good attempt, however, the bonuses are 1/10 of a percent of the entire

amount that AIG got from the government in rescue funds.

AIG got about $165 billion so far.

The bonuses are about 165 million.

Do the math.

165 million is 1/1000 of 165 billion.

What I what to know is what does AIG plan to do with the other 99.9% of the federal money?

[marketcrazy1]

14. well AIG paid out 11+ billion to Goldman Sachs

so I suppose Goldman will report a first quarter profit next month.......... thanks to the 11 BILLION of OUR money they got from AIG!!

[Joe Fields]

15. Just take the fucking money back. Tell those bastads that the govt. tap is turned off.