Monday, March 16, 2009

Obama Threatens To Re-Repay Taxpayers For AIG Bonuses

Interesting twist in Aigbonusgate: WSJ reports that Obama will force AIG to re-repay bailout funds for money that is spent on bonuses (which of course makes no sense at all):
It was unclear what legal options the government can pursue to stop the bonus payments. Monday afternoon, a White House official said the Treasury Department will use a planned $30 billion infusion into AIG to compel the company to repay the bonuses promised to employees of its financial-products group, which is responsible for selling the exotic financial instruments that brought the company to near-collapse.
This is getting worse than a surreal Escher painting. Instead of taking this route, why not just threaten to block the $30 billion payment completely? This would reduce the bonus issue to potential bonus recipients as follows: accept a bonus and be the cause for the shutdown of the most systematically important company (and thus create wanton fire and brimstone), or rescind a payment, be touted a humanistic hero and promote capitalism (for at least a few more days). This avoids the legal implications of suing and counter-suing bonus recipients.

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Breaking News Update from WSJ: AIG has told Cuomo's office that bonus payments were made on Friday, but did not disclose names. Basically: all discussion is now moot unless the bonuses can be clawed back somehow... Cuomo must be pissed. Sphere: Related Content
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9 comments:

Anonymous said...

Hello,
This is Edward Liddy, chief executive of AIG. Your rude comment "(which of course makes no sense at all)" make no logical sense at all. I will repay the US government for all bonuses even if I have to use TARP funds to do so.

So there! "Tyler Durden", we know who you are...

Anonymous said...

> will force AIG to re-repay bailout funds for money that is spent on bonuses

aren't they obligated to re-pay ALL bailout funds ?

ie the government is threatening to force them to do something which they're already obligated to do !!
(unless I'm missing something)

Daniel said...

Is it really by force when you own 80% of the company? At this point, isn't it just doing what you want?

Anonymous said...

Anonymous said...

"aren't they obligated to re-pay ALL bailout funds ?"

When were you born yesterday? Depression baby?

Let me spell something for you depression baby. Poison Pill.

You disgrace the Anonymous name.

Edios said...

I think that works, but what may work even more is posting the pictures of all 400 people on all local papers and declaring it a hit-list. Bounty is their bonus...

AWESOME...

Anonymous said...

they must be peeing right now ha ha, sooner or later public will get the names.

Anonymous said...

Mr. Liddy. You signed in as anonymous. Send something on your letterhead. Tyler will publish it.

Anonymous said...

Only in America where you can run a company into the ground and still get a bonus.

TraderMark said...

I thought *I* was 80% owner in AIG. Hence *I* could say no bonuses. I guess *I* am wrong.

Sincerely,
Forced into AIG ownership