The AIG Bonus Tax Stench: The House Made It Harder to Fix the Financial System
Reader Comments
Focus on Those Offering The Package
The news of these individuals receiving such enormous bonuses during
these times is really setting people off. But tell me how many of us
would not take the bonus if we were in their place. 50%, 70%, 99%. Be
real people, anyone would be a fool to turn down that offer. Don't get
me wrong. It ****** me off just the same as everyone else but given
the opportunity - SHOW ME THE MONEY!
Where we need to point the finger and all our anger is at the HR
officials, Boards of Directors, CEO's, anyone that creates these
extreme packages to lure these people into the organization. Offering
someone a 5 million dollar salary and a 15 million severance package
paid whether they screw up or not is obscene. If I screw up I'm toast.
Why are these individuals offered such outlandish packages - because
the people that offer the deal are in exactly the same situations as
the person they're trying to gain. They're trying to keep the species
alive. If something were done to control this then the HR officials,
Boards of Directors, CEO's, anyone that creates these extreme packages
would also suffer and they will not allow that. Therefore the system
exists and will always exist. It's the 'Good Ol Boy' network on crack!
It stumps me why stockholders are not up in arms over this stuff too.
It seems to me that all of that money would be better utilized if it
were used as dividends.
I think that the core problem to all of this is 100% pure American
greed. All these years we've been shown more and more to rush in, make
the big score, and then get the hell out. Forget the long haul, go for
it right now! Never mind tomorrow!
AN UNDESERVED COUP
If the Republicans win in 2010, it will be a coup they don't deserve to win. It was on their watch, and with their participation, that GW Bush started two wars and unbelieveably, cut taxes for the wealthiest Americans. Pay-as-you-go spending, instituted by GHW Bush and continued by Clinton, was abandoned. Bush and his Congress spent money like the spoiled, rich brats they were. They drunkenly hit us head on, cutting us off at the knees in deficit spending, and a hands off policy with regulating the financial institutions.
Obama is left with the job of rehabilitation.... trying to get us walking again on prosthesis, propped up with crutches. It will be costly, we will probably never fully recover. But the alternative is we never walk again.
If Republicans prevail in 2010, they will preside over our demise.
AIG
The scariest thought is not the bonus taxing but the fact that every trader at AIG now has no incentive to show up for work and unravel the mess they were working on. Instead they will most likely return their bonus to avoid the lynch mob mentality of the general public and simply walk across the street to a European bank and trade against that very portfolio they were working on which will now be rudderless and unhedged on an active trading basis. AIG will blow up and the taxpayers will lose $170bn but have saved $160mm.
Michael McMahon
I want to note the incredible political courage it took for a freshman Democratic member of Congress to stand athwart the mob and say "Stop!" Mr. McMahon of Staten Island voted against this particular bit of silliness. While I would have voted for Mr. Straniere, I have to give Mr. McMahon his due.
The Angry White Male Returneth; or, What's Different from 1994?
In 1994, Republicans picked up 54 seats and took control of Congress. Not a single Republican incumbent was defeated that year. For those who maintain that Republicans aren't going to take control of the House in 2010, let me ask you this: What mitigating political factor (in the Democrats' favor) exists today that did not exist in 1993?
And please don't say Chris Dodd's charm and good looks.
I would submit that Obama is now governing well to the left of Clinton in 1993. The economy is worse, and Obama is making silly mistakes, both in terms of ideology and competence. Indeed, by all accounts, 2010 is shaping up to be WORSE for the Democrats than 1994. Note the remarkable Congressional generic ballot surveys, and note the polling leads enjoyed by Republican candidates in places like Michigan.
You heard it here first: Dodd, Reid, the whole lot, are going to get wiped out in 2010. Everything is going to break in favor of the GOP. The GOP is going to sweep the upcoming specials in New York and California. The Year of the Angry White Male returneth.
OBAMA IS REALISTIC PRAGMATIST
Obama got the job because he is seem as a realistic pragmatist. With Afghanistan he asked for plans to be made until there is realistic and pragmatic exit strategy or end game. A realist makes decisions based on facts, evidence and expert opinions. There is no reason why General Petraeus and the rest of the planners cannot come out with a strategy that is doable. The same with the banks, it may have to be modified, changed, extended, redone, and so on, but realistic and pragmatic plans are the best option. There are two basic opponents, as I see it, to realistic pragmatism. There are conservatives, people who want to base decisions and plans on preconceived notions on "how things are supposed to work." There are also critical liberals, who have idealistic notions that seem logical, but have no realistic basic for implementing. Right now conservatives and critical liberals are pulling out their familiar and worn-out arguments about banking reform plans, as they will continue to do about education, medicine, environment and so on. They are constructive some of the time and their prejudiced starting points do need to be considered in order for final rational, pragmatic plans to reach consensus. I foresee Obama gradually being successful with realistic pragmatic programs. It will take some grind and muddling through, but the odds highly favor this common sense approach. Realistic pragmatism, an American philosophy, is destined to sweep the world like the English language.
AIG
Sounds as though its time fer a referendum on increasing the Representatives taxes to punish them for not reading the bill that they passed. Has anyone taken an approval rating on these turkeys lately? I would be astounded if its out of the single digits.
Stimulus Bill
Please explain further how no House Dem had the opportunity to read this bill.
Bailout Mania
Wow, I am utterly shocked at what some employees are going through because of federal idiocy. I can not say that I have been in your position. I personally think that it is ridiculous that congress is doing this. If I were anyone that was being affected by this tax, I would be calling and harassing my congressman about this.
By the way, the last time I checked a member of the house of Representatives are paid an annual salary of approximately $160,000. They receive additional pay for sitting on committees. A US Senator is paid approximately $178,000, and they are paid additional money for sitting on committees.
Good luck to you folks who are getting it from the government. We may not be suffering under communism, but we are definitely closer to socialism than before!
Congress Pushing us into a Depression
Where are the Republicans on this TARP Bonus Tax?
Fully half crossed the aisle to vote for it in the House, which is unbelievable. What self-respecting member of the GOP can honestly believe that forcing management decisions at private firms via the U.S. Tax Code is a good idea?
Allowing this bill to pass makes it easier to justify such intrusions into private companies in the future, so long as it will ensure "fairness to all workers." The slippery slope to socialism has never seemed so close...or steep.
There are many of us in the banking business who have lost our jobs (I myself will join their ranks in a few short months). I don't make anywhere near $250,000 in a given year. But this year, because I've been at this company for 20 years, I will receive a healthy severance and transition bonus from JPMorgan Chase when my position is eliminated. Combine that with my wife's salary and we are now "rich" as defined by the U.S. Congress.
Because of this bill, the bonus that I would have received for staying on the job and successfully transitioning the operations of failed WaMu to JPMorgan Chase is all but lost. In other words, I stayed here to make sure the financial system continued to operate as smoothly as possible in this environment, which is the express goal of TARP, and will be punished for it. I didn't deal with credit default swaps, wasn't in our mortgage business line, and didn't get to choose to accept TARP funds. Now, the money we were going to use to survive in this deep recession will now be confiscated by the U.S. Government.
I'm filled with rage for Nancy Pelosi and Harry Reid (and most members of the GOP as well). Alas, my only hope is that Obama vetoes this legislation...that isn't any kind of Hope I Can Believe In.
Sincerely,
Sleepless in Seattle
P.S., How much do congressman and senators make each year? Last I checked, the business they manage is forecasting the largest annual loss in the history of mankind.
