AIG employee bonus ... smoke and mirrors

[donbrown]

This news is to DIVERT YOUR ATTENTION from more crucial decisions being made.

Why ... to run interference and make you focus about TRIVIAL MATTERS.

Here are some facts you should consider:

AIG distributes bonuses because they signed employment contracts months / years ago so they have a legal obligation.

Since they are not bankrupt and they don't pay "bonuses" they will get sued for breach of contract ... disscrimination etc.

AIG has the money to do this because the Government gave them public money to OWN 80% of AIG

The US Government "officially" knew about the bonuses IN DETAIL since MARCH 2008. If you were a shareholder you would know this for DECADES. If you are and investor you should know this since their creation in Hong Kong.
If you are in the financial community these bonuses are as common as getting overtime for a hourly employee.

If anyone replies I will gladly help you understand this is a "smoke annd mirror" campaign.

 

[FriscoProx]

And Chris Dodd's part:

While the Senate was constructing the $787 billion stimulus last month, Dodd 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 now seeking to tax.

The amendment made it into the final version of the bill, and is law.

Separately, 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.

 

[donbrown]

And Chris Dodd's part:

While the Senate was constructing the $787 billion stimulus last month, Dodd 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 now seeking to tax.

The amendment made it into the final version of the bill, and is law.

Separately, 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.

Great point.

The 30 billion AIG recived directly so far had little restrictions on it in the terms and conditions.

Other than the 80% ownership of AIG !!!

After people were screwed by owning Fannie Mae equity who in their right mind would finance AIG with private money ???