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Dodd Screws Up....Again

Mike

Well-known member
Senator Chris Dodd (D-Conn.) on Monday night floated the idea of taxing American International Group (AIG: 0.9601, 0.18, 23.07%) bonus recipients so the government could recoup the $450 million the company is paying to employees in its financial products unit. Within hours, the idea spread to both houses of Congress, with lawmakers proposing an AIG bonus tax.

While the Senate constructed the $787 billion stimulus last month, Dodd unexpectedly added an executive-compensation restriction to the bill. That amendment provides an “exception for contractually obligated bonuses agreed on before Feb. 11, 2009,” which exempts the very AIG bonuses Dodd and others are seeking to tax. The amendment is in the final version and is law.

Also, Sen. Dodd was AIG’s largest single recipient of campaign donations during the 2008 election cycle with $103,100, according to opensecrets.org.

Dodd’s office did not immediately return a request for comment.

One of AIG Financial Products’ largest offices is based in Connecticut.



Dodd Amendment Rules

Crack down on bonuses, retention awards and incentive compensation: Bonuses can only be paid in the form of long-term restricted stock, equal to no greater than 1/3 of total annual compensation, and will vest only when taxpayer funds are repaid. There is an exception for contractually obligated bonuses agreed on before Feb. 11, 2009.
For institutions that received assistance totaling less than $25 million, the bonus restriction applies to the highest compensated employee; $25 million to $250 million, applies to the top five employees; $250 million to $500 million, applies to the senior executive officers and the next top 10 employees; and more than $500 million applies to the senior executive officers and the next top 20 employees (or such higher number as the Secretary determines is in the public interest).
 

hypocritexposer

Well-known member
Senator Barack Obama received a $101,332 bonus from American International Group in the form of political contributions according to Opensecrets.org. The two biggest Congressional recipients of bonuses from the A.I.G. are -- Senators Chris Dodd and Senator Barack Obama.

The A.I.G. Financial Products affiliate of A.I.G. gave out $136,928, the most of any AIG affiliate, in the 2008 cycle. I would note that A.I.G.’s financial products division is the unit that wrote trillions of dollars’ worth of credit-default swaps and "misjudged" the risk.

With the anger and rage that is being exhibited against A.I.G., perhaps the bonuses Obama received from A.I.G. explain Obama's A.I.G crocodile tears.

Now that the Wall street Journal has revealed that A.I.G. paid bonuses of $1 million or more to 73 employees, it's time to ask if recipients of A.I.G. "bonuses," including President Obama, will give what now ought to be taxpayer money back?
 

Faster horses

Well-known member
This whole AIG thing is just a distraction. Glenn Beck showed today where the rest of the stimulus package went and only 44 billion went to American countries.

They talked about this very thing last night on talk radio, The Jason Lewis Show, I believe it was.

And I also heard last night on talk radio that they have to honor the bonuses paid because it was in their contract and now that the government owns 80% of AIG, the governement can be sued for performance. The ONLY way out of this mess was to NOT GIVE THEM THE MONEY!
 

hypocritexposer

Well-known member
Maybe they should have just used the same excuse they did on the omnibus bill.

Orszag said: "We want to just move on. Let's get this bill done, get it into law and move forward."

Said Emanuel: "That's last year's business."
 

aplusmnt

Well-known member
Faster horses said:
This whole AIG thing is just a distraction. Glenn Beck showed today where the rest of the stimulus package went and only 44 billion went to American countries.

They talked about this very thing last night on talk radio, The Jason Lewis Show, I believe it was.

And I also heard last night on talk radio that they have to honor the bonuses paid because it was in their contract and now that the government owns 80% of AIG, the governement can be sued for performance. The ONLY way out of this mess was to NOT GIVE THEM THE MONEY!

Yea, as long as everyone fights over the 160 million then they do not have to answer questions on the 60 Billion with a B that went to other countries from AIG.

So what about the bonuses, I want to know why 60 Billion of the AIG bail out went to other countries and also other institutions that got their own bail out money.

I agree with Beck, AIG was just a money laundering stop!
 
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