I Want This Job - U.S. Politics Online: A Political Discussion Forum

John Drake · #1 (**permalink**) 03-18-2009

Quote:

AIG CEO defends bonuses as public fury mounts
By Kristin Roberts and Emily Kaiser, Reuters
2 hours ago

The head of AIG said on Wednesday the "cold realities of competition" compelled the insurer to pay $165 million in bonuses, and acknowledged that bailout-weary Americans' patience was running thin.

American International Group Inc has come under intense fire from the public, politicians and President Barack Obama for accepting up to $180 billion in government aid and then handing out multimillion-dollar bonuses, but Edward Liddy said the best hope for recouping taxpayer money was to keep running AIG as a business.

"No one knows better than I that AIG has been the recipient of generous amounts of government financial aid," he said in remarks prepared for delivery to a congressional committee.

"We have been the beneficiary of the American people's forbearance and patience. And we are acutely aware not only that we must be good stewards of the public funds we have received, but that the patience of America's taxpayers is wearing thin," he said.

Fury over the bonuses threatens to undermine Obama's efforts to solve the credit crisis and pull the economy out of a deep recession. Many voters view the financial rescues as free handouts to wealthy executives who made bad decisions, and the fat bonuses -- although relatively small compared to the government's $700 billion bailout fund -- have fueled that anger.

The situation has put Obama in a tight spot as he tries to strike the right balance between sharing the public's outrage and keeping his focus on the bigger issue of repairing the economy. Some economists have warned that the bonuses could become a distraction that delays recovery efforts.

AIG has argued that the payouts were necessary to retain top employees with the specialized knowledge to dispose of $2.7 trillion in complex securities that ended up dragging the company to the brink of collapse last year.

Liddy, who took over as chairman and chief executive six months ago when the government first stepped in to try to stabilize AIG, said the company had made mistakes "on a scale few could have ever imagined possible."

That stark admission did little to dull the anger directed toward him on Wednesday. Senate Republican leader Mitch McConnell called the bonus situation "an offense to the taxpayers, and we're going to get to the bottom of it, even if the Department of the Treasury hasn't."

U.S. Treasury Secretary Timothy Geithner said late on Tuesday that AIG would have to promise to compensate taxpayers for the bonuses as a condition for receiving a planned $30 billion expansion of its bailout.

But Geithner said anger toward Liddy was "unjustified" because he had joined AIG at the government's behest and the problems there predated him.

Finance - AIG CEO defends bonuses as public fury mounts

Think of this job. You're responsible for losing your company BILLIONS and they're STILL losing it, yet in the midst of all this you're so vital to them that they're still giving you giant bonuses to keep working for them or other cos will.

How stupid does this guy think we all are? I think he's influenced by the fact that some Republicans still defend Bush

Amendment 1 · #2 (**permalink**) 03-18-2009

Christopher Dodd made it happen. They owe their bonuses to him, any ideas as to where his campaign funding comes from next election cycle? We know where it came from this past one don't we.

And they all voted for this crap and they all now call it Outrage. Almost laughable.

ArmyFerret · #3 (**permalink**) 03-18-2009

Quote:

Originally Posted by John Drake

I think he's influenced by the fact that some Republicans still defend Bush

Um. Why?

ApolloMike · #4 (**permalink**) 03-18-2009

Quote:

Originally Posted by John Drake

Think of this job. You're responsible for losing your company BILLIONS and they're STILL losing it, yet in the midst of all this you're so vital to them that they're still giving you giant bonuses to keep working for them or other cos will.

How stupid does this guy think we all are? I think he's influenced by the fact that some Republicans still defend Bush

Other than the last line, I think this is something most everyone can agree on. We are finding out that the more we mix government with free market, the more it does not work. If these companies would have just gone bankrupt, those contracts could have been voided. Instead, 535, plus one, idiots in Washington tried to hand them money to continue screwing everybody else.
Let the companies fall. No one is going to bail out my business if it fails. Let the people fall. The ones that can work hard and survive are going to be stronger for doing so. The ones that can't were not meant to survive.

Steve · #5 (**permalink**) 03-18-2009

When I read the thread title, and then who penned the OP, it dawns on me that a more accurate thread would beL "I want A job"...

RRAHH · #6 (**permalink**) 03-19-2009

Quote:

Originally Posted by ApolloMike

Other than the last line, I think this is something most everyone can agree on. We are finding out that the more we mix government with free market, the more it does not work. If these companies would have just gone bankrupt, those contracts could have been voided. Instead, 535, plus one, idiots in Washington tried to hand them money to continue screwing everybody else.
Let the companies fall. No one is going to bail out my business if it fails. Let the people fall. The ones that can work hard and survive are going to be stronger for doing so. The ones that can't were not meant to survive.

I couldn't agree more with you! Oh well, the only way we'll learn is if it's done the hard way.

Quote:

Originally Posted by Steve

When I read the thread title, and then who penned the OP, it dawns on me that a more accurate thread would beL "I want A job"...

Nice one!

Jefferson · #7 (**permalink**) 03-19-2009

The secret is to get in the CEO club. Once your in, it doesn't matter how many companies you destroy. It's almost as good as being a government "expert" on something, where it doesn't matter how many times you're wrong, you're still an "expert".

chassisman · #8 (**permalink**) 03-19-2009

Quote:

Originally Posted by Steve

When I read the thread title, and then who penned the OP, it dawns on me that a more accurate thread would beL "I want A job"...

Disagree, IMO, he wants the check, not the job.

LeatherneckPM · #9 (**permalink**) 03-25-2009

Quote:

Originally Posted by John Drake

Think of this job. You're responsible for losing your company BILLIONS and they're STILL losing it, yet in the midst of all this you're so vital to them that they're still giving you giant bonuses to keep working for them or other cos will.

How stupid does this guy think we all are? I think he's influenced by the fact that some Republicans still defend Bush

Anyone who is dumb enough to blame the current CEO and then give Obama a free pass by saying that the current situation is the fault of Bush is, sadly, a complete idiot.

This guy took over SIX MONTHS ago - the company was already in the crapper.

I'm glad I'm not that stoopid.

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