Reluctant Politician

I am left wondering how many more ways A.I.G. can find to piss off the American public even though we, through the Federal Government, own 80% of the company?

I simply can not believe that AIG is suing for return of back taxes. We gave them nearly $200 million and they want us to foot the bill to fight both sides of a legal battle for $305 million more. In my opinion it is time to cash in our chips (ownership rights) and replace that entire Board of Directors.

Correction .. It is almost $200 BILLION we gave them so far. So easy to get the numbers wrong with the way new high points keep getting thrown out there. Remember when we thought the deficit was bad at hundred of millions, then billions and now were are up to trillions? Keep your eyes out for the use of the quadrillion.

The simple fact remains that these people are only employed because of our $200 billion bailout. And then they have the actual gall to sue the Feds for $305 million more, while forcing us to pay the legal bills both for A.I.G. pursuing the case, AND the Government defending against the suit! I’ve come to discover that there are dumber people than politicians … A.I.G. executives.

Yes, I did discuss the bonuses in an earlier post a few days back. Yes, there were contracts stipulating bonuses would be paid and the government was aware of these contracts. Could they have been renegotiated? Most likely. Were they ironclad contracts? Unlikely as few contracts don’t have a weakness that can be exploited.

This posting though is about the fact that AIG is suing for repayment of back taxes. A situation where the greedy nature of those in charge continues unabated and we the people are forced to foot the bill for both the claimant and the defendant. An asinine proposition to say the least.

Please feel free to read the original story that inspired this post:

A.I.G. Sues U.S. for Return of $306 Million in Tax Payments

By Lynnley Browning (New York Times)

http://nyti.ms/aKv15y

If President Obama and N.Y. Attorney General Andrew Cuomo truly cared about the A.I.G. employee bonuses they would’ve tried to block them BEFORE they were paid. Leaders need to be proactive, not reactive!

I am in no way defending the bonuses and think they are blatantly absurd. However, the government was most likely already aware of them long ago. Obama only came out today trying to block them because the media learned of the bonuses and reported on them widely this past weekend.

The Feds knew there was little legally they could do to stop them from being awarded since they were explicitly stated in contracts with those employees. While it may be insane they are legally entitled to the bonuses. Now if they should accept this largesse or not is another matter altogether.

Politicians invariably have three massive, and apparently insurmountable, failings:

1) They tend to overreact to bad news and events and rush bad legislation (i.e. giving the banks billions without any oversight or, for another example, the passing the Patriot Act).

2) They react to events in the news AFTER the fact instead of confronting issues and taking steps to alleviate them before they make headlines.

3) They promise a new ethical and open manner of government, yet once in power ‘blindside’ their supporters and everyone else with ‘business as usual.’

To be completely fair and upfront here … I have never been a supporter of former Pres. George W. Bush and generally vote Democratic. However, Obama was a reluctant vote in that I do not trust him. His very first action as a potential president was to say he would accept the public financing for his campaign. He then turned around and took a boatload of private money instead. Starting your term with a lie does not sit well with me and I do not like the trend I am seeing with him so far.

OMG!!!! ^&%&*^$%*^&$%#

AIG is about to pay $100 million in bonuses to executives in the division that wrote trillions of dollars’ worth of credit-default swaps – the very same thing responsible for our financial mess!

“We cannot attract and retain the best and the brightest talent to lead and staff A.I.G. businesses if employees believe their compensation is subject to continued and arbitrary adjustment by the U.S. Treasury.”

BEST AND BRIGHTEST!?! AT WHAT? BEING SNAKE OIL PEDDLERS!! ——

Not even three hours since I saw the story and the amount has risen to $165 million in bonuses which have already been paid out to these financial ‘wizards.’

You know what, give me nearly $200 billion dollars and responsibility for trillions more and I’d have a tough time spending it all much less making it disappear into thin air like A.I.G. has.