Why Are Democrats Protecting AIG?


House Democrats Just Rejected Another Good Republican Idea: Forcing AIG to Pay Back Bonuses

A friend informs me that all but 8 House Democrats just voted against a measure to require the Obama administration to do everything legally possible to compel AIG to return to the taxpayers the controversial bonuses approved by Secretary Geithner. The bill is described here by its sponsor, Congressman Paulsen:

This is the text of the bill:

Section 1: The Secretary of the Treasury shall, notwithstanding any other provision of law, implement a plan within the next two weeks to recoup or stay the payment of AIG bonuses.

Section 2: No additional funds may be provided to AIG until the bonuses are returned.

Section 3: Any future bonus payments, of any kind, by TARP fund recipients who have not within two weeks of enactment of the bill repaid the government in full, must be approved in advance by Treasury.

Section 4: Any future contractual obligations to make bonus payments of any kind entered into by TARP fund recipients who have not within two weeks of enactment of the bill repaid the government in full must be approved in advance by Treasury.

House GOP Whip Cantor has a list of the Democrats who voted to protect AIG here. Why would they block a bill that requires the Treasury to do precisely what they claim to want?


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19 Comments Leave a comment

It is not a good idea to make people pay back bonuses and the GOP

Mike gamecock DeVine (Diary) Wednesday, March 18th at 1:27PM EST (link)

is unwittingly protecting Obama and the Dems by falling into this trap of extreme outrage towarsd AIg rather than the Obama/Dem policies that caused this matter (see obama signing Dodd amended stimulus) and the fannie caused econ crisis overall.

Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” – Andrew Jackson

This could turn into a Reichstag fire if we don't get out the extinguishers and keep spraying

civil truth (Diary) Wednesday, March 18th at 1:45PM EST (link)

What the Republicans need to do is to shine the light on how the Democrats enabled and continue to enable these payments – that is to get the message across the the Democrats are hypocrites – and even more than hypocrites, are actually maliciously starting a witch hunt of witches that they created themselves.

This is a good start, but certainly not enough.

Republicans need to continue to jump up and down and do whatever they can to expose this right now – this is Reichstag fire territory, if we don’t stand up the Republican will get burned down, as well as our Republic.

And as for the AIG recipients – when the political party in power goes nuclear, there aren’t going to be many survivors left – and individual merit has nothing to do with casualities.

The greatest evil…is conceived and ordered (moved, seconded, carried, and minuted) in clean, carpeted, warmed, and well-lighted offices, by quiet men with white collars and cut fingernails and smooth-shaven cheeks who do not need to raise their voice. Hence, naturally enough, my symbol for Hell is something like the bureaucracy of a police state or the offices of a thoroughly nasty business concern. -C.S. Lewis

http://www.gmsplace.com/

Just checked the drudgereport and it's saying that Fannie Mae

janis (Diary) Wednesday, March 18th at 2:00PM EST (link)

execs are in line for bonuses up to $611k. Now tell me the Dems didn’t know THAT was coming! Oh, Barney Frank, what a tangled web we weave when first we practice to lie in Porky Pig’s flabby voice.

 

I wish more had

Rapunzel46 Wednesday, March 18th at 5:17PM EST (link)

shown up for the dog and pony show this morning and when they followed some of the democrats who made grand speeches blaming this on the GOP had used their time to set the record straight. The GOP is in the wilderness for two reasons… one was spending like democrats, but the other is they still refuse to speak out clearly and loudly about who is really making the rules.

 

amen on directing outrage at Dems and the rule of law

Mike gamecock DeVine (Diary) Thursday, March 19th at 9:25AM EST (link)

requires that we follow the Dodd Amendment and exempt the AIG bonuses. The remedy is for the govt to deduct the amount of same from the latest bailout installment,

Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” – Andrew Jackson

 

amen on directing outrage at Dems and the rule of law

Mike gamecock DeVine (Diary) Thursday, March 19th at 9:25AM EST (link)

requires that we follow the Dodd Amendment and exempt the AIG bonuses. The remedy is for the govt to deduct the amount of same from the latest bailout installment,

Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” – Andrew Jackson

 
 

Tru freakin dat

Alberta (Diary) Wednesday, March 18th at 3:17PM EST (link)

AIG smoking crack is bad, but the DEMOCRATS are EVIL for importing, refining, and distributing the crack. (AIG using its insurance business to fund a hedge fund is bad, but the Dems are responsible for giving us the regulatory framework that allowed and in fact encouraged AIG to do it.)

Most of us here are all for personal responsibility. Cool. Lets be real, though. Junkies are junkies because the drug takes control. They need help, because left alone they will rot. Well, the bankers that a lot of you want to eat are junkies. They needed our help. The Democrats fought tooth and nail to protect Frannie (Fannie + Freddie), which was the dealer. Laws that governed the wall between banks and investment firms where weakened under the DEMOCRAT controlled congress.

Stop being fooled. AIG is not polite, sure, but save the outrage for the people who deserve the anger directed at them, which isnt the bankers, but their enablers, the incompatent men and women who infest Congress and the White House.

Sir, my concern is not whether God is on our side; my greatest concern is to be on God’s side, for God is always right.
Abraham Lincoln

thank you - nt

Mike gamecock DeVine (Diary) Thursday, March 19th at 9:26AM EST (link)

Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” – Andrew Jackson

 
 
 

if execs return the bonus money...

ddlbb Wednesday, March 18th at 1:30PM EST (link)

the democrats lose their whipping boy: the rich bonus recipients.

as long as they’re out there, the heat is deflected from the president, geithner (who knew of the bonuses months ago), and chris dodd (who put the exemption for the bonuses in the stimulus bill).

why help solve a problem when you can worsen and extend a crisis?

 

What about the bonuses that are going to be paid by Freddie and Fanny?

djemi (Diary) Wednesday, March 18th at 2:06PM EST (link)

That what I’ve just heard on Rush.

“If I can’t shoot rabbits,then I can’t shoot fascist”
“With age, comes Wisdom, but only if you are paying Attention, son” my ‘Old Man’
RS Help files (h/t JLenardDetroit) Grassroots in Michigan
Moes Strategy

 

I wonder how much manufactured outrage...

Husker (Diary) Wednesday, March 18th at 2:13PM EST (link)

will be waged over planned bonuses of $611K to Fannie Mae execs, or will Barney Frank reprise his role as Officer Barbrady shouting “Nothing to see here” as he did before with the GSE’s.

 

Please help me understand

red4ever (Diary) Wednesday, March 18th at 3:47PM EST (link)

These bonuses were issued pursuant to poorly written contracts. Should they have been based on positive performance? Yes. But, the actual contract apparently says they get the bonuses no matter what. So, AIG did what they were legally required to do under the terms of the contract. Remember, the contracts were entered into before the bailout.

So, please explain to me why the GOP should support interference with a contract legally entered into between a private entity and an individual? Not trying to start a fight. I just am not sure this the stand the party should be taking.

Morally should the executives give the bonuses back? Sure. Legally, I am not sure. And I am definitely sure the government should not be in the bullying business.

Thank you.

The hottest places in hell are reserved for those who, in times of great moral crisis, maintain their neutrality.
Dante

It's called jujitsu

civil truth (Diary) Wednesday, March 18th at 3:56PM EST (link)

The Democrats complain about the bonuses; the Republicans say, right on – and by the way, you Democrats are the ones who approved these bonuses in the first place, so you should be angry at yourselves.

And as for “interference”since the law does provide for abrogation of contracts if the company goes insolvent; it is not unreasonable to apply a similar concept here to reduce or modify the bonus plan. I wouldn’t want to make the a practice, but exceptional circumstances warrant a proportionate exception response

Given the economic plight of the company, I don’t see serious moral hazard in modifying the contracts; what is the real hazard is the brownshirt outrage that is being deliberately and maliciously stirred up by the Democrats to cover up their complicity. That’s not proportionate and endangers the republic by inciting mob passions.

The greatest evil…is conceived and ordered (moved, seconded, carried, and minuted) in clean, carpeted, warmed, and well-lighted offices, by quiet men with white collars and cut fingernails and smooth-shaven cheeks who do not need to raise their voice. Hence, naturally enough, my symbol for Hell is something like the bureaucracy of a police state or the offices of a thoroughly nasty business concern. -C.S. Lewis

http://www.gmsplace.com/

 

Bonuses

jcheney Wednesday, March 18th at 6:38PM EST (link)

The bonuses are “retention” bonuses not “performance” bonuses. My understanding is the bonuses they are talking about are paid in order to keep the employees. The bonuses have nothing to do with performance.

PS The video is no longer available.

 

I am with red4ever on this

Kyle-MI (Diary) Wednesday, March 18th at 9:57PM EST (link)

If I understand the situation correctly, there is a legally binding contract between AIG and some of their employees where, if the these employees stay with AIG, then they get a bonus. Is the only way out of the contract to fire the employees? (Not necessarily a bad idea, but it would be extremely difficult to find and put in place all the replacements while the company is trying to get back on its feet.)

 
 

If the Dems bring a vote tomorrow for a 90% tax on bonuses..

speciallist (Diary) Wednesday, March 18th at 4:17PM EST (link)

the Repubs should vote NAY….Repubs should not get sucked into this…

Attention Conservative Leaders, stand together and vote NO on 90% taxes

Timma knew!…..

Agreed, $peciallist...

randy streu (Diary) Wednesday, March 18th at 4:23PM EST (link)

and they should raise unholy hell in explaining to the public exactly why, A, the Dems are doing it and, B, they, the Republicans are fighting it. If I don’t see (R) representatives on every news channel tomorrow, I’m going to be VERY disappointed.

I'd lol that.....if I wasn't so mad...

speciallist (Diary) Wednesday, March 18th at 4:35PM EST (link)

…the Helicopters should be flying into Costa Mesa in about an hour!

Nobody knows how he’s getting to the Fairgrounds…..they will have to CLOSE the freeway to get him here from long beach by motorcade…

405 south has terrible traffic!!

 
 

If the Dems bring vote, GOP votes "present"

Hammer2008 (Diary) Wednesday, March 18th at 10:31PM EST (link)

I say pull a Pontious Pilate, vote “present” and wash your hands of such a vote; after all, voting “present” is to emulate former U.S. and IL state Senator Barack Hussein Obama, no?

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Too much noise! “Noise! You’ll have noise enough before long. The Regulars are coming out.” ~ Paul Revere (April 18th, 1775′s eve…)