Feds to cut $165M from AIG bailout (bonus money goes back to taxpayers)

Feds to cut $165M from AIG bailout (bonus money goes back to taxpayers)

www.dailypress.com

WASHINGTON - The government will deduct $165 million in proposed aid to bailed-out American International Group Inc. to recoup the cost of bonuses paid to employees of the insurance giant last week, Treasury Secretary Timothy F. Geithner said on Tuesday.

In a letter sent to congressional leaders, Geithner said he persuaded AIG Chief Executive Edward M. Liddy last week to scrap hundreds of millions of dollars in future payments after determining that the bonuses already granted would be "legally difficult to prevent."

Geithner said AIG would be required to pay the $165 million from corporate operating funds as part of the final terms for a previously announced $30-billion line of credit from the government. In addition, the credit line will be reduced by the same amount.

The action came amid public outrage over the bonus payments made last week to employees who created and sold the risky financial instruments that were largely responsible for bringing the New York conglomerate to its knees and helping to wreak havoc in world financial markets.

"There is ire that almost verges ... on hate," said Sen. Dianne Feinstein, D-Calif.

The employees still would keep their bonuses. Seeking to change that, Congress is stepping in with proposals to rip the funds from them by taxing the extra income so much that they would be left with little or nothing.

(visit the link for the full news article)

SEE!!! If people get fed up enough and speak out, the PTB have to act! The FED realized people were seeing the sham they were putting on and got scared. They took $165 million back (even though to them its pennies) , but i think its a step in the right direction. When people get outrages, they have to react or bills like the one Ron Paul is trying to get through (to audit the FED), will be passed.

If more people are informed, the more people will be outraged, and then comes change. Most of us here on ATS know whats going on behind the scenes, we just have to do our best to educate the general public! We still have work to do! Bring down the FED!!!

www.dailypress.com
(visit the link for the full news article)

[edit on 19-3-2009 by bringthelight]

Its a joke. All they're doing is cutting back $165 million from FUTURE installments of bailout funds to AIG. Its a PR move by the politicians and nothing more.


[edit on 19-3-2009 by vor78]

Originally posted by bringthelight
SEE!!! If people get fed up enough and speak out, the PTB have to act! ...

If more people are informed, the more people will be outraged, and then comes change.

Yeah, but this only works with publicly visible actions. What about all the stuff that goes on without the public's knowledge?

All the programs under the guise of national security, for instance?

Unless there are some whistleblowers coming forward the most outrageous things could be going on and no one will ever know. And even if and when we know about them, it will be irrelevant or there will be no one alive to be accountable.

That may be...but they pissed enough people off to cause a reaction. Im sure they though the bonuses would go over with no problem...the people got angry and screwed with their plans. If this wakes up even 10 people it was worth it. A small victory that could lead to a large one...have some hope.

Wow, so we're going to get back $165 million of the $30 BILLION (!!) we gave to AIG, surely this will fix our economic woes.

$165 million out of $30 billion.

I have two words in regards to this:

Empty Posturing

reply to post by converge


The truth will eventually come out. This is too big and too many people are interested. AIG is the symbol of what wrong with America today. When you are in the red and getting billions in bailouts...you don't give flippin bonuses...bonuses are for companies that have done well and had a good year.

here is a quote from Harry Reid at the end of the article..

"When a child breaks his curfew, he should get grounded. When someone commits a crime, he should be punished," said Senate Majority Leader Harry Reid, D-Nev. "And when an employee brings his company and our economy to the brink, he's not rewarded with multimillion-dollar bonuses paid by the taxpayers."

So the tax payers get their money back.


There are 306,040,899 people here give or take a hundred. If everyone gets their money back then we get back a dollar and change.

I rather we just take all our money back. Atleast that will give us around 95 dollars.


Edit to add- This money that we get back will be taxed, so cut about 25% out of the money we get back.

[edit on 19-3-2009 by jd140]

It is funny to see just how easy the public can be manipulated. This whole "bonus fiasco" is just ridiculous. Yes, it is outrageous for these execs to feel entitled to their bonuses given the current state of affairs, but the 165 million is such a minuscule amount of the theft that is going on right now it is barely even worth noting.

Congress simply wanted to give the people something to focus on and with the aid of the media, here we are. Many people out there will feel some sort of vindication about the result of this. They will feel as if their voice was heard. Their voice wasn't heard though. This was nothing more than congress throwing the peons a few scraps to shut them up and keep their eyes off of what is really going on. (ooooh, shiny object.....)

This is nothing but a huge media stunt.

reply to post by Karlhungis


Absolutely correct. Congress and the administration are essentially inciting a mob mentality against AIG to cover up their own guilt in the matter. They've even stooped to the level of attempting to pass a 90% tax on those bonuses retroactively, even though to do so is unconstitutional and illegal.

These Congressional hearings and their 'outrage' are just a PR move to satisfy what they believe to be the moronic masses. No more, no less. Its far, far bigger than $165 million, folks.




[edit on 19-3-2009 by vor78]

Positive side: The people got outraged and forced the FED to take back $165 million. People spoke out and business as usual did not continue today in Washington. The general public is starting to wake up and a small but powerful change occurred. This event could lead to many more similar events that fuel an upheaval of the way things have been going.

Negative Side: $165 million is nothing. They have given out so much more than that. We are all screwed. Nothing will ever change.

Choose one. Before you do remember this great quote...
"The world in which you live is not primarily determined by outward conditions and circumstances but by the thoughts that habitually occupy your mind." -- Norman Vincent Peale

Is anyone really thinking that 165 million will even put a dent on a 30 billion buck bailout????

Thats pocket change folks.

As one poster pointed out, its nothing but a political PR stunt to make it sound like they really care.

PFFT!!!!


Cheers!!!!