Hey, Sealy!! FOX was right! aka Dodd 'fesses up...finally

[WillowTree]

WASHINGTON - 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.

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

While administration officials insisted Tuesday that neither Obama nor Geithner learned of the impending bonus payments until last week, the problem wasn't new. 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.

http://www.startribune.com/politics/41399422.html?elr=KArksUUUU

 

[Zoom-boing]

WASHINGTON - 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.

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

While administration officials insisted Tuesday that neither Obama nor Geithner learned of the impending bonus payments until last week, the problem wasn't new. 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.

SPIN METER: Shocked, shocked! Washington knew AIG details for months, rises in anger only now

Well shit! It's about time someone put this out there. I've been saying this all along.

 

[Zoom-boing]

Those are good questions. and although I'm not sure about this I think the nuance is in "retention bonus" vs "merit bonus" does that make sense?

Sort of . . . I get that the bonuses were to retain these people - the same people who screwed thing up to begin with - rather than for merit. It's the whole loophole thing has me confused. Do you know what the loophole states? (I'm no good at legalize). Does the loophole pertain just to AIG or to financial execs in general?

IT IS NOT THE SAME PEOPLE. The people that are getting bonuses are the people hired to FIX the mess. And the Congress and press KNOW IT.

RGS -- can you give more detail on this? If I'm understanding correctly -- it's not AIG execs getting the bonus but people the government bought in to fix the mess AIG made?

 

[sealybobo]

Those are good questions. and although I'm not sure about this I think the nuance is in "retention bonus" vs "merit bonus" does that make sense?

Sort of . . . I get that the bonuses were to retain these people - the same people who screwed thing up to begin with - rather than for merit. It's the whole loophole thing has me confused. Do you know what the loophole states? (I'm no good at legalize). Does the loophole pertain just to AIG or to financial execs in general?

IT IS NOT THE SAME PEOPLE. The people that are getting bonuses are the people hired to FIX the mess. And the Congress and press KNOW IT.

Yes it is. The same people that made the mess were the same ones who got the bonus'. We hired them to fix the mess they created.

The idea was, who better to defuse the bomb than the people that made it".

 

[WillowTree]

Sort of . . . I get that the bonuses were to retain these people - the same people who screwed thing up to begin with - rather than for merit. It's the whole loophole thing has me confused. Do you know what the loophole states? (I'm no good at legalize). Does the loophole pertain just to AIG or to financial execs in general?

IT IS NOT THE SAME PEOPLE. The people that are getting bonuses are the people hired to FIX the mess. And the Congress and press KNOW IT.

Yes it is. The same people that made the mess were the same ones who got the bonus'. We hired them to fix the mess they created.

The idea was, who better to defuse the bomb than the people that made it".[/QUOTE]



oh that explains why you are letting dodd and fwank work this probelm over!

 

[Truthmatters]

ABC News: Dodd vs. Treasury: Who Is Responsible for AIG Loophole?


This covers the story pretty well I think.

 

[Truthmatters]

Sort of . . . I get that the bonuses were to retain these people - the same people who screwed thing up to begin with - rather than for merit. It's the whole loophole thing has me confused. Do you know what the loophole states? (I'm no good at legalize). Does the loophole pertain just to AIG or to financial execs in general?

IT IS NOT THE SAME PEOPLE. The people that are getting bonuses are the people hired to FIX the mess. And the Congress and press KNOW IT.

RGS -- can you give more detail on this? If I'm understanding correctly -- it's not AIG execs getting the bonus but people the government bought in to fix the mess AIG made?

No he cant because the only one who was brought in is Liddy

 

[Zoom-boing]

Sort of . . . I get that the bonuses were to retain these people - the same people who screwed thing up to begin with - rather than for merit. It's the whole loophole thing has me confused. Do you know what the loophole states? (I'm no good at legalize). Does the loophole pertain just to AIG or to financial execs in general?

IT IS NOT THE SAME PEOPLE. The people that are getting bonuses are the people hired to FIX the mess. And the Congress and press KNOW IT.

Yes it is. The same people that made the mess were the same ones who got the bonus'. We hired them to fix the mess they created.

The idea was, who better to defuse the bomb than the people that made it".

AIG screwed up . . . who hired people to fix the mess? Whose 'we', government? Do those people work for the government . . . or for AIG? Yes, I'm confused.

 

[Zoom-boing]

IT IS NOT THE SAME PEOPLE. The people that are getting bonuses are the people hired to FIX the mess. And the Congress and press KNOW IT.

RGS -- can you give more detail on this? If I'm understanding correctly -- it's not AIG execs getting the bonus but people the government bought in to fix the mess AIG made?

No he cant because the only one who was brought in is Liddy

I know he was brought in in Sept to fix the problems but -- who does Liddy work for? Iis he a government person or an independent person?

 

[Truthmatters]

He works for the company.

He get 1 dollar and equity grants for his work

 

[Truthmatters]

Edward M. Liddy - Wikipedia, the free encyclopedia


As CEO of AIG, Liddy receives a salary of $1 and equity grants

 

[Zoom-boing]

He works for the company.

He get 1 dollar and equity grants for his work

Yup, I knew that. So the people getting these retention bonuses are the AIG employees who screwed things up to begin with . . . and are being paid big bonus money to stay and fix the problems . . . that they created to begin with.

Who is RGS talking about then?

 

[Truthmatters]

STOCK AND REAL ESTATE INVESTING FINANCIAL GLOSSARY - EQUITY GRANT
Glossary Term: EQUITY GRANT

Definition(s) for EQUITY GRANT:

1. ) A grant generally provided by a government agency, which reduces up-front acquisition costs to a housing or commercial development project The grant can take a variety of forms, such as a direct cash contribution, or the contribution or reduced price sale of publicly owned land or property




rgs is talking about imaginary people

 

[PubliusInfinitum]

Dodd's amendment as introduced directed the Treasury secretary to require each Troubled Asset Relief Program (TARP) recipient to "meet appropriate standards for executive compensation and corporate governance": "a prohibition on such TARP recipient paying or accruing any bonus, retention award, or incentive compensation during the period that the obligation is outstanding to at least the 25 most highly-compensated employees, or such higher number as the Secretary may determine is in the public interest with respect to any TARP recipient."

The Senate adopted Dodd's amendment by voice vote. Subsequently, the conference committee assigned to work out the differences between the Senate version of the recovery bill and the House version -- included Dodd's amendment "with several modifications" in its version of the bill. Among those modifications, the bill adopted by the conference committee included the following language:

The prohibition required under clause (i) shall not be construed to prohibit any bonus payment required to be paid pursuant to a written employment contract executed on or before February 11, 2009, as such valid employment contracts are determined by the Secretary [of the Treasury] or the designee of the Secretary.

ROFLMNAO... Man this is one profound rationalization...

I bet if I had sufficient interests, I could use this to certify this idiot as "Mentally incompetent."

Does anyone have ANY idea what this tool is trying to say?

The Issue is "DODD DENIED HAVING ANY PART IN WRITING ANY LEGISLATION WHICH PROTECTED THE CONTRACTS WHICH AIG WAS OBLIGATED TO PAY AND HE THEN ADMITTED THAT HE WROTE THE LEGISLATION WHICH PROTECTED THE CONTRACTS WHICH AIG WAS OBLIGATED TO PAY...

Who asked him to do it, WHY he did, that HE WAS ASKED BY REALLY IMPORTANT PEOPLE< ARE ALL IRRELEVANT.

He was RIGHT TO PROTECT LEGALLY BINDING CONTRACTS... AS THE US CONGRESS IS PROHIBITED BY THE US CONSTITUTION FROM SEIZING PERSONAL PROPERTY WITHOUT DUE PROCESS OF LAW AND THEIR PROHIBITED FROM ADVANCING LAW WHICH NEGATES LEGALLY EXECUTED CONTRACTS THAT WERE EXECUTED BEFORE A GIVEN PIECE OF LEGISLATION WOULD MAKE SUCH CONTRACTS OTHERWISE ILLEGAL!

THE ISSUE IS HE DENIED DOING IT, THEN ADMITTED IT AND HOPED TO EXCUSE HIS MALFEASANCE THROUGH POINTING THE FINGER OF RESPONSIBILITY AT THE CHEIF EXECUTIVE....

LOL... The Cheif Executive who then came out and TOOK FULL RESPONSIBILITY just before he declared it wasn't HIS FAULT;... BUT HE STILL ASSUMES FULL RESPONSIBILITY... HE's just not prepared to accept any consequences which RESPONSBILITY FOR SUCH MIGHT INEVITABLY REALIZE...

ROFLMNAO... You can't make this crap up....

 

[WillowTree]

Friday, March 20, 2009
Exclusive: Treasury Officials Proposed Limiting Bonuses for AIG




Treasury officials proposed limiting annual bonuses for all employees of American International Group in November, as they were negotiating the government’s first investment in the troubled firm, according to a document obtained by FOX Business.

In a Nov. 5 e-mail to Treasury officials under the Bush Administration along with Federal Reserve officials, an outside attorney working on the transaction wrote, “We indicated that UST (United States Treasury) ... wants to put in place a limitation on annual bonuses that assure that (AIG: 1.1696, -0.4204, -26.44%) executives/employees will not be enriched out of TARP funds.”

But the e-mail indicates AIG officials pushed back on the proposal. In a section of the e-mail discussing proposed limits on severance packages for AIG employees, the attorney wrote, “They were slack jawed at the idea of imposing the restriction throughout the entire population, especially worldwide.” AIG proposed that Treasury apply such limits “to a class of partners and senior partners (700).”

At another spot in the e-mail, the attorney said about AIG executives, “They will think about ways to deal with the ‘no enrichment’ point. In this connection they again raised the size of the applicable group and kept coming back to ‘700’ as a meaningful, and possibly workable, group for limitations.”

The e-mail also indicates that in their deliberations, government officials were concerned about the effect of compensation on recruiting and retaining AIG employees.



Exclusive: Treasury Officials Proposed Limiting Bonuses for AIG - FOXBusiness.com

 

[Truthmatters]

Nope you got it wrong IP.

Dodd had his staff remove the exception for bonuses which were already conracted before feb 11 2009.

He did so because he thought he recieved a request by Geitner to do so.

Geitner was just warning him about the legal remifiucations which Dodd had been warned about before.

They got their communications crossed.

Now they fixed it in a much less legally tenious way.

 

[WillowTree]

Exclusive: Treasury, Fed Reviewed AIG Bonus Info Months Ago




As Congress and the Obama Administration consider legislation to limit bonuses at American International Group (AIG: 1.16, -0.43, -27.04%), documents obtained by FOX Business show AIG bonuses and other compensation were reviewed and changed by officials at the Treasury Department and Federal Reserve in November, when the Treasury made its first investment of taxpayer funds -- $40 billion -- in the company.

Nov. 1, 2008: “Have your benefits team made any progress on the ‘soft’ issues, or heard anything from the fed [sic] on the bonus situation?” a Treasury official wrote in an e-mail about the transaction.

Despite their deliberations at the time, the Treasury and Fed officials, which were part of the Bush Administration, eventually decided to restrict compensation on just the top 75 company executives--and some of them may still have received hefty bonuses.

Exclusive: Treasury, Fed Reviewed AIG Bonus Info Months Ago - FOXBusiness.com

 

[sealybobo]

IT IS NOT THE SAME PEOPLE. The people that are getting bonuses are the people hired to FIX the mess. And the Congress and press KNOW IT.

Yes it is. The same people that made the mess were the same ones who got the bonus'. We hired them to fix the mess they created.

The idea was, who better to defuse the bomb than the people that made it".

AIG screwed up . . . who hired people to fix the mess? Whose 'we', government? Do those people work for the government . . . or for AIG? Yes, I'm confused.

The people who work for AIG and caused this mess answer to the people who run and own the Federal Reserve.

If anything shady is going on, it would be at the direction of Paulson/Berneke/Greenspan/Geithner.

The people who own/run the Federal Reserve tell the politicians what to do.

Before all this, I said the Federal Reserve had the GOP in their pockets. Now, it seems they also have Dodd in their pocket too. And 15 blue dog democrats from what I am hearing.

So this is getting into the area where Republicans are right when they say, "all politicians are corrupt".

Because maybe there are more good democrats than there are bad ones. But not enough of them to get anything done.

So I hope Republican voters are happy. They have proven that both parties suck.

And I hope they aren't convincing themselves that this proves that Republicans are better than Democrats, because if anything, all this proves is that the rich bankers own some of our boys too.

This does not in any way redeem the GOP. Not even close.

 

[sealybobo]

Exclusive: Treasury, Fed Reviewed AIG Bonus Info Months Ago




As Congress and the Obama Administration consider legislation to limit bonuses at American International Group (AIG: 1.16, -0.43, -27.04%), documents obtained by FOX Business show AIG bonuses and other compensation were reviewed and changed by officials at the Treasury Department and Federal Reserve in November, when the Treasury made its first investment of taxpayer funds -- $40 billion -- in the company.

Nov. 1, 2008: “Have your benefits team made any progress on the ‘soft’ issues, or heard anything from the fed [sic] on the bonus situation?” a Treasury official wrote in an e-mail about the transaction.

Despite their deliberations at the time, the Treasury and Fed officials, which were part of the Bush Administration, eventually decided to restrict compensation on just the top 75 company executives--and some of them may still have received hefty bonuses.

Exclusive: Treasury, Fed Reviewed AIG Bonus Info Months Ago - FOXBusiness.com

Fox actually got it wrong. Their original story was inaccurate.

They only got lucky that it actually was Dodd.

But Fox's original story was not correct.

So I don't want to read Fox's story.

 

[Truthmatters]

Friday, March 20, 2009
Exclusive: Treasury Officials Proposed Limiting Bonuses for AIG




Treasury officials proposed limiting annual bonuses for all employees of American International Group in November, as they were negotiating the government’s first investment in the troubled firm, according to a document obtained by FOX Business.

In a Nov. 5 e-mail to Treasury officials under the Bush Administration along with Federal Reserve officials, an outside attorney working on the transaction wrote, “We indicated that UST (United States Treasury) ... wants to put in place a limitation on annual bonuses that assure that (AIG: 1.1696, -0.4204, -26.44%) executives/employees will not be enriched out of TARP funds.”

But the e-mail indicates AIG officials pushed back on the proposal. In a section of the e-mail discussing proposed limits on severance packages for AIG employees, the attorney wrote, “They were slack jawed at the idea of imposing the restriction throughout the entire population, especially worldwide.” AIG proposed that Treasury apply such limits “to a class of partners and senior partners (700).”

At another spot in the e-mail, the attorney said about AIG executives, “They will think about ways to deal with the ‘no enrichment’ point. In this connection they again raised the size of the applicable group and kept coming back to ‘700’ as a meaningful, and possibly workable, group for limitations.”

The e-mail also indicates that in their deliberations, government officials were concerned about the effect of compensation on recruiting and retaining AIG employees.



Exclusive: Treasury Officials Proposed Limiting Bonuses for AIG - FOXBusiness.com

Surprize , surprize that AIG was trying to keep their bonuses.

I think they saw the legal problems they could exploit later too.