Obama Tells Geithner to Block A.I.G. Bonuses

New York Times ^ | 03/16/2009 | New York Times

[autumnraine]

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.”

[Red Badger]

Contractual bonuses cannot be blocked without a lawsuit.................

[demshateGod]

Don’t go to the government for bailouts.

[Buddygirl]

I got an email recently about AIG. They gave it the money to keep it going because AIG handles the US Congress critters’ pension plan or fund. Any truth to this?

[autumnraine]

Admin, I see now a similiar article is posted from WSJ. Didn’t see in search, but you can judge to leave this NYT article or not.

Thanks

[4Speed]

Wow...MORE Tea Party attendees by the hundreds.
Someone issue AIG a special invitation.....Like the Tea Parties, AIG is nationwide !

[autumnraine]

I wouldn’t doubt it. AIG is HUGE and they have a chunk of nearly everything from Workers Comp to pension plans.

[unkus]

I heard the same thing.

[Enterprise]

While he’s at it, block the BILLIONS going to groups like ACORN, and the 900 MILLION going to HAMAS!

[cups]

So what does this mean when these people sue AIG for failure to comply with contractual obligations?

While I’m opposed to my tax dollars paying for someone’s bonus. At the same time they are obligated to pay out. This is the baggage that comes with this TARP money people. get used to it

for f*ck sake, damned if you do, damned if you don’t.

[EGPWS]

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 other words, Mr. Obama wants government to be the sole candy man, all others are evil.

[CWW]

Pretty close. AIG handles State and Federal Gov't employee union pension funds as well as teacher pension funds.

Now you know the real anawer to why the Feds won't let AIG fail.

[bill1952]

make the American taxpayers whole.”

LOL! Sure. - Resign. - and give the American taxpayers back a few Trillion. - then talk about “whole.”

[Gator113]

“President Obama vowed..... “

The word “vowed” after the word “Obama”..... is nothing more than a noise.

[utahagen]

You are 100% right. Obama is a hypocrite. If you don't trust a business to spend money appropriately, don't lend that business any money! Once you do lend or give money with no strings attached, don't complain about how the money is spent. Obama has set Geithner up to take the fall on this, whichever way it goes down.

[listenhillary]

No.

[RonboTex]

So is the congress going to halt its own automatic payraise in the spirit of “shared sacrifice”?

[palmer]

Now you know the real anawer to why the Feds won't let AIG fail.

The Feds could have easily guaranteed all of the pension funds for far less than they've shelled out. The main reason for throwing 120B or whatever into it is to prop up the failed idea of credit default insurance. There's no way to spread the risk when the entire financial system fails, but if they didn't funnel out that money, the Feds believed the financial system would fail.

[bobsatwork]

...block these bonuses and make the American taxpayers whole... - I now fully believe that Obama is the most dishonest person to hold the position of POTUS. One thousand times the amount of these bonuses would not make American taxpayers "whole", and he knows it. Flat-out lie. Wonder if this was on his teleprompter?

[packrat35]

I say let them sue. AIG is nowed 80% by US taxpayer.

Arrest any foolish enough to sue as they are the fraudsters who put us in this mess!