Kaptur Asks Why AIG Gets Special Treatment Auto Workers Do Not

The government has been super strict and harsh on an auto companies that has been behind on the curve in the world market of cars. While they need to get their act together, the fact that AIG got a slight slap on the wrist for their fiscal atrocities is just a bit of a double standard. Congresswoman Marcy Kaptur makes a point of it on the House floor:

Geithner Wants The Power

Treasury Secretary Geithner is asking Congress for more authority to oversee financial institutions such as, or specifically, A.I.G. The question though, is will he use that power for the common good or the "market's" good?

Scrubbing The Name "A.I.G." Off The Building Doesn't Make The Damage Go Away

Like anything in life, looks can be deceiving. For example, it is widely known that A.I.G. is now synonymous with greed, corruption and a degree of callousness towards the American people (who bailed them out) that personifies the relationship between Wall Street and the rest of the country. So when you are within that organization that is A.I.G., do you atone for your sins? Give the money back? Do whatever it takes to win back the trust of the people you lied to and cheated on?

Or do you scrub the name "A.I.G." from your building and pretend nothing's wrong?:

Reader Dan Albanese sent us photographs of the anonymous-looking exterior of 175 Water Street. The building formerly had "American International Group" prominently over the front doors, along with "AIG" etched in the windows and doors. According to the Post, AIG spokespeople explained that "the company had decided to replace the large AIG sign -- outside the entrance to its property-casualty offices -- as part of its plan to change that operation's name to AIU Holdings Ltd"—to "distinguish these well-capitalized businesses from AIG." Is the subtext, then, that the employees here are not the ones protesters should be harassing?

So just pretend nothing happened, or that A.I.G. even exists. It isn't even a question of pride for these people, it is that protesters look bad for business and confusing them into doing something else is best for A.I.G.'s profitability. It is much cheaper for them to pay a maintenance worker to take their name off the glass in the lobby than actually reform themselves into being ethical and morally upstanding people in society. If anything, it would take a jail cell for many of these corporate crooks to turn themselves around.

Bloomberg Defends A.I.G. Bonus Recipients

It is tough being an executive at A.I.G. these days. Everyone out there loathes you, except for Rush Limbaugh but who wants that brand of compassion? What about billionaire Michael Bloomberg though? The media mogul turned mayor is still much more popular than Limbaugh (though his poll numbers have fallen considerably since he passed the term limits extension bill) and is currently C.E.O. of the city that A.I.G. has gotten away with so much in. Well anyway, screw those millionaire executives, why would Bloomberg come to the defense of these economy-wrecking scourges of capitalism?

From The Daily Politics:

Mayor Bloomberg today came to the defense of the public enemy du jour - the bailout cash bonus recipients - saying he disagrees with the push to publicize the names of financial sector executives who received taxpayer-funded salary sweeteners.

"Generally speaking, if you work in the private sector, I don't think your salaries and bonuses should be in the public domain," the mayor said during a Q&A with reporters, including the DN's Kate Lucadamo, that followed his visit to a retraining session employees of Rucci Oil Company in Port Richmond, Staten Island, where he was highlighting the city's efforts to help small businesses.

"If you are the heads of companies, there are laws that the top 10 executives or whatever have to be in the annual report and that is fine. The stockholders have a right to know but as you go down, people want to have their privacy. I don't think you'd wanting somebody snooping around in your private life."

This of course is in response to Attorney General Cuomo's successful court action to make the executives' names public. What Bloomberg fails to recognize is that A.I.G. is no longer a private company. If they were, they'd have either not gotten themselves into this mess or if we had free markets, they'd be a part of economic history. Now they belong (80% of the company give or take) to the American taxpayer and if we want to see their records, we better damn well have access. If they want our money, they'll learn how to be accountable, even if Congress doesn't is doing this primarily for grandstanding-purposes only.

Unfortunately, Bloomberg doesn't seem to get that, nor the animosity that most New Yorkers and Americans as a whole have towards these greedy schmucks. Perhaps in the rarified air that Mike breathes it is no big deal that the rich make themselves richer at the taxpayers' expense, but down here on Earth it is a tremendous problem that the public wants rectified.

Cenk Uyugr Rips Rush For Being An AIG Apologist

It isn't news that Rush Limbaugh is a scumbag, but the audacity he has to defend the bonuses given to A.I.G.'s already-wealthy traders who destroyed their company is just beyond ridiculousness. Cenk rightly calls him on it:

W.F.P. Dares Albany To Take On A.I.G.

Despite the half-hearted efforts of A.I.G. head Ed Liddy to return some of the bonus money, there will still be taxpayer funds used to make wealthy traders richer. Congress and Barack Obama have delivered a lot of tough talk, but so far they have not done all that they can to stamp out A.I.G.'s greed. So here's an idea care of Dan Cantor of the Working Families Party, have Albany tax every dime out of those bonuses.

From PolitickerNY:

The Working Families Party called today for a 100% state tax on the $165 million in announced bonuses at insurance giant AIG.

"If Washington can't find a way to get this money back, Albany should," said Dan Cantor, Working Families Party Executive Director. "The same people who helped wreck the economy are taking home millions in taxpayer-funded bonuses while classrooms, hospitals and homeless shelters here in New York face billions in cuts. It's disgusting in the extreme. AIG got its bailout. When will working families see theirs?"

Cantor continued: "Opponents of Fair Share Tax Reform like to talk about how much the rich have suffered from the economic downturn. But the real pain of this recession is being felt by millions of hardworking New Yorkers who bear no responsibility for the financial shenanigans that got us into this mess."

"The Governor proposes to balance the New York's budget through devastating cuts that would place the burden almost entirely on the backs of working families. Taxing AIG bonuses and asking those who can afford it to pay a little more in taxes is a far better solution."

Amen Dan! New York needs every spare penny we can find to help balance the budget this year. Further, not only should these bonuses be taken away, the entire wealthy class should be made to pay their fair share. I know Majority Leader Smith and Governor Paterson are sick of hearing about the Fair Share Plan, but until they approve it the working class will continue to fight tooth and nail for it.

Dana Perino's "Middle Class" Makes Millions

At the end of the Bush days, it was always amusing to watch Dana Perino in action as White House Press Secretary. The way she tried covering for ex-President Bush made her look like a vapid idiot. With Robert Gibbs running the show in the press office now, I wondered what Ms. Perino has been up to. Well wonder no more, she was on C-Span this past weekend defending the "middle class" who work at A.I.G.

From ThinkProgress:

On C-Span’s Washington Journal on Sunday, Perino defended the bonuses:

PERINO: And the people who are working there that are middle-class people, are expecting to get this bonus. If they do not get it, maybe they won’t be motivated enough to try to help the company turn around and getting the company to turn around and be more profitable is important for all of us.

Perino then chastised the “rhetoric in Washington” that “can try to make things so black and white, and make things sound so easy — demonize people when I don’t think that that’s fair.”

Oh no, it isn't fair to demonize people. We wouldn't want to express national outrage at millionaires who are getting million dollar bonuses in the hope that they stay at A.I.G. after aleady running the insurance giant into the ground, right? Why, after throwing $170 billion in taxpayer money at the company, should people be red in the face, especially when many of those that were paid retention bonuses left their jobs anyways? When the pitchfork mobs start forming, I certainly hope she hides herself for safety's sake....she could start by staying away from C-Span and all things punditry.

There's More To AIG Than Their Bonuses

The story that (thankfully) won't stop about AIG's $165 million in bonuses has provided another shock to an already repulsed nation. As the media holds on to it, politicians from the President on down are expressing their outrage at the situation. How dare they take those bonuses! The gall! The audacity! The....oh come on now, we knew that they'd go ahead and further enrich themselves with the Fed's our money. If anything, our elected officials should have known this would have happened.

Actually they did:

Sherman told me in an interview today that the Treasury Department wouldn't have to be withholding $30 billion in aid from AIG until the company restructures its bonus payments, because Congress already had given Treasury the authority to prevent those bonuses from being paid.

Referring to the original bailout Congress passed in October, Sherman told me:

We had a provision in there that said Treasury was supposed to establish, by regulation, standards for executive compensation. We required that to be done -- had it been done, it would have been binding, whether [or not] these contracts had been signed earlier. It's entirely within the power of the federal government to have contracts modified [at companies receiving public aid]. Nixon had contracts modified by the federal government. We gave a similar power to Treasury.

Oh but wait you say, in October Bernanke and Hank Paulson were in charge, why would this be anyone but Bush's problem? Well, Geithner and Summers were a problem back then and they still are now. The decisions they make are at odds with what Obama says in front of the cameras and empathize with the traders, not the American people who were bludgeoned by the greed of Wall Street.

It's great that we have people like Cuomo that want to go after these financiers for their bonuses, but we still need to address the systemic problems such as Obama's conservative choices when it comes to dealing with the financial industry. The hard truth is, we still need the change Obama promised as far as Wall Street goes. Until proven wrong, I still see Geithner as part of the problem, not the solution.

Can Congress Get Our Money Back From AIG?

The news over the weekend about AIG and their hundreds of millions in bonuses have pissed a lot people off, including those in Congress. People like Barney Frank want the taxpayer dollars given back and it appears that Speaker Pelosi wants to get involved too.

From The Gavel:

While American workers see their wages decline and face record job losses, it is unconscionable that AIG, which is receiving more than $170 billion in government assistance, would permit such extravagant executive compensation practices without any accountability to the taxpayer.

I have asked Chairman Barney Frank of the House Financial Services Committee to examine options that are legally available to recover taxpayer funds of companies that abuse the privilege of taxpayer assistance.

I call upon the executives at AIG to right the wrong they have done to American taxpayers, who are footing the bill for the most expensive government rescue in history. They should renounce the bonuses and refuse the excessive retention pay they previously agreed to.

Congress, working with the Obama Administration, has put in place tough executive compensation and responsibility measures to ensure that taxpayers are protected and we will continue to take all action necessary to ensure transparency and accountability.

That sounds great, but examining what to do and actually doing it are two totally separate things. Congress has issued many strongly worded statements before with little punch behind them. For too long the Legislature has been great at handing out large sums of money (whether as tax cuts for the rich or blocks of money known as "bailouts" and "rescue packages"). When it comes to watching what happens with that money and making sure it is effective is another matter. AIG isn't going to part with our billions easily, so Congress must act forcefully...and not just on the Speaker's letterhead.

Corporate America Hates America

They do, they really do. The top executives, lobbyists and CEOs hate us, loathe us, despise us. Now, they love the America where they can get handouts in the billions of dollars for themselves but that isn't the, as Sarah Palin would not say, the real America. When it comes to helping out their workers, the people who actually produce and generate the wealth for the top, corporations will do whatever it takes to punch us in the gut while begging for financial mercy.

From The Huffington Post:

Three days after receiving $25 billion in federal bailout funds, Bank of America Corp. hosted a conference call with conservative activists and business officials to organize opposition to the U.S. labor community's top legislative priority.

Participants on the October 17 call -- including at least one representative from another bailout recipient, AIG -- were urged to persuade their clients to send "large contributions" to groups working against the Employee Free Trade Act (EFCA), as well as to vulnerable Senate Republicans, who could help block passage of the bill.

Bernie Marcus, the charismatic co-founder of Home Depot, led the call along with Rick Berman, an aggressive EFCA opponent and founder of the Center for Union Facts. Over the course of an hour, the two framed the legislation as an existential threat to American capitalism, or worse.

"This is the demise of a civilization," said Marcus. "This is how a civilization disappears. I am sitting here as an elder statesman and I'm watching this happen and I don't believe it."

Donations of hundreds of thousands, if not millions, of dollars to Republican senatorial campaigns were needed, they argued, to prevent America from turning "into France."

"If a retailer has not gotten involved in this, if he has not spent money on this election, if he has not sent money to [former Sen.] Norm Coleman and all these other guys, they should be shot. They should be thrown out their goddamn jobs," Marcus declared.

Bernie Marcus is the type of goon that is up against the American worker. To him, the pinnacle of civilization is the feudal system, where thousands of peons toil day and night to increase his bottom line and his bank account. If this guy is charismatic, he must have gotten those skills from the devil himself. His ego looks to be beyond all help, swollen to the point that the slightest touch of his forward would cause an earthquake felt from New York to Los Angeles.

He may fear America turning into France for good reason though. If this were France, and he made statements like that (especially if it were in the early 19th century) he'd be guillotined in an instant. Right after Louis and Marie Antoinette, Marcus would next on the chopping block. His callous disregard for the workers that put him where he's at is astounding. It should be a clear sign to our political leaders that our corporate-government dynamic is out of control, the question is, will they listen?

Give Me Your Money And Shut Up!

Sounds like something a mugger might say to you on the street before relieving you of your wallet, but this isn't on a sidewalk, it was a quick press conference and Neel Kashkari was leading it. Who is Kashkari you ask? He used to be a top executive at Goldman Sachs but now is an assistant to Secretary Paulson. He's relatively green in this position and while he loves taking the taxpayers' money to get him and his buddies out of the jam they created (for us all), he hates answering questions and being held accountable.

From The NY Post:

The interim assistant secretary of the Treasury for financial stabilization yesterday had a tone of impatience during a question-and-answer session, leaving some attendees feeling cheated.

The Q&A followed a keynote speech that Kashkari gave at a conference in Midtown Manhattan, which was attended by hundreds of financial executives.

When it came time for questions, the former Goldman Sachs executive told the eager audience that he had time for just "two or three."

In response to the first question, about the government's latest lifeline for beleaguered insurance company American International Group, Kashkari gave a clipped response before quickly moving on.

Yeah, well technically we are still under the Bush Administration so scrutiny and oversight is not what these people prefer. He never really answered anyone's questions but didn't mind giving out billions in loans of our money. Seriously, they are all scumbags at the top of the Treasury Department. President-elect Obama better be coming up with people to replace the shameless goons who are running that agency right now.

AIG Hides Yet Another Luxurious Retreat

Executives at AIG were publicly shamed for holding a six figure retreat last month in Southern California. You would think they learned their lesson, especially with the billions and billions loaned by you and I (the taxpayers) to the insurance giant. It was bad enough they did it in the first place, but they were used to these things, so I can understand a little bit. Now there's no way they'd try that again, right? Wrong.

From ABC News:

Reporters for abc15.com (KNXV) caught the AIG executives on hidden cameras poolside and leaving the spa at the Pointe Hilton Squaw Peak Resort, despite apparent efforts by the company to disguise its involvement.

"AIG made significant efforts to disguise the conference, making sure there were no AIG logos or signs anywhere on the property," KNXV reported.

A hotel employee told KNXV reporter Josh Bernstein, "We can't even say the word [AIG]."

Really, keeping things on the down low. Hmm, I think there's a question here that needs to be asked:

"What do they have to hide," asked Congressman Elijah Cummings (D-MD) who said he had been promised by AIG CEO Edward Liddy that the company would stop such "junkets."

"They came to us and said they were drowning and needed help. A person who is drowning doesn't jump up and start partying," said Congressman Cummings.

Cummings said Liddy should resign as AIG CEO.

Liddy should definitely resign. He is a disgrace to what is left of the company he has helped run into the ground and should be blacklisted from the financial sector, along with every other high-priced suit that made idiotic long-term decisions for short-term gain. I don't care if the retreat costs $343,000 or $343.00, these people should go to work in the boardrooms within skyscrapers that cost obscene amounts of money to lease to begin with. The greed, it truly is sickening and to waste money while taking multi-billion dollar loans from the public should be criminal.

AIG Cancels One Bailout Party, Wachovia Plans Another

Last week AIG enraged Americans when it was found out they took a half a million dollar retreat for top executives immediately following their $85 billion dollar loan. When Congress found out about it and thoroughly thrashed them for such behavior, the corporate crooks promptly canceled their next trip at the Ritz in Half Moon Bay, CA. The criminals at Wachovia however, clearly did not get the message about how bad AIG's callousness can irk some people (like the ones screwed by the executives' greed).

From The LA Times:

As ailing Wachovia Corp. waits to see whether it will be acquired by Wells Fargo & Co. or Citigroup Inc. -- possibly with taxpayers paying the tab for hundreds of billions of dollars in bad loans -- some of the company's top brokers are preparing to depart Saturday for an all-expenses-paid cruise of the Greek Isles.

The weeklong trip for up to 75 employees of brokerage A.G. Edwards, which Wachovia acquired last year for nearly $7 billion, will also include spouses and significant others, said Teresa Dougherty, a Wachovia spokeswoman.

"This is one way that we recognize our top financial advisors," she said.

Yeah, I'm trying not to laugh at that last quote either. Those would be the same top financial advisors that helped lead Wachovia into the state it's in now. So not only are they screwing over Citi by backing out of a deal, they are pulling a double-whammy on the American taxpayers. First a baseball bat to the gut and now a nice spat on the face to rub it in. Sure must be nice to be in the upper echelons of these companies.

$85 Billion For AIG And Wall St. Is Still Unhappy

Last night you, myself and three hundred million Americans helped pay to take over the insurance giant AIG. We've loaned this company $85 billion dollars in exchange for a 79.9% share and the choice of a new CEO. So how did Wall Street respond this morning? The market opened more than two hundred points down. Some thank you, right?

From The NY Times:

The Dow Jones industrials plummeted more than 200 points in the first minutes of trading, and the broader Standard & Poor’s 500-stock index lost about 2 percent. The Dow was down 190 points at 9:40 a.m.

Stocks fought their way to a positive finish on Tuesday, but spent much of the day in negative territory. On Monday, the American stock market suffered its worst single session since the days after the 9/11 terrorist attacks.

Shares of A.I.G. shed another 33 percent even after the Federal Reserve and the Treasury Department decided last night to prop up the ailing insurer with an $85 billion loan. Federal officials appeared to take the extraordinary measure after fears arose that a collapse at A.I.G. could set off catastrophe consequences in the global financial system.

Now I hear that there are a lot of smart people on the Federal Reserve Board, but if they think that this loan was going to solve our financial crisis or even stem it, then it is time for a few people to go back to Econ 101. No amount of federal giveaway to the titans of business will help us. According to that last paragraph, we've already lost 33 percent of that investment loan and nobody knows where it'll stop.

This must be one of George Bush and John McCain's fundamentals. When their friends screw up with a highly deregulated market, simply bail them out with the taxpayer's money. Does that sound fair to you? Where was your $85 billion when the choice came down to food on the table or the children's health care? Where were those billions when you lost your job overseas because of NAFTA and its subsequent trade deals? Where was that money when the American people needed it?

George Bush, John McCain and the people they keep in the Federal Reserve care about the market and nothing else. Sure, we need to keep business going, but business doesn't go without the people that make it run. CEOs may make decisions, but workers are what allow them to be there in the first place. Deregulation and the resulting corruption is what put us here, and only a reversal of that is going to get us out, no matter how many borrowed billions we throw away in this fire.