Obama's Stimulus Bill Explicitly Grants AIG the Legal Right to Give Unlimited Bonuses

jficquette · Mar 17, 2009

http://porkulus.butasforme.com/?p=110#bonus

"(iii) The prohibition required under clause (i) shall not be construed to prohibit any bonus payment required to be paid pursuant to a writte employment contract executed on or before February 11, 2009...."

Kassz007 · Mar 17, 2009

Good find.

I guess the theory is if bailout money restricts the ability to pay bonuses, the company will be tempted to manage earnings in an unethical way in order to receive their bonus.

jficquette · Mar 17, 2009

Quote from Kassz007:

Good find.

I guess the theory is if bailout money restricts the ability to pay bonuses, the company will be tempted to manage earnings in an unethical way in order to receive their bonus.

They put this in the bill and then Obama comes out and makes a fool out of himself about it.

Just like with stem cell research. He signed an executive order saying its ok but his spending bill had it explicitly prohibited.

MKTrader · Mar 17, 2009

http://www.dilbert.com/strips/comic/2009-02-25/

Anaconda · Mar 17, 2009

Quote from jficquette:

They put this in the bill and then Obama comes out and makes a fool out of himself about it.

More like he made a fool out of you, cause you actually believed him.

Anaconda · Mar 17, 2009

Quote from Kassz007:

I guess the theory is if bailout money restricts the ability to pay bonuses, the company will be tempted to manage earnings in an unethical way in order to receive their bonus.

You're actually trying to justify this nonsense?

This AIG you're talking about. A company that cannot survive without government capital injections. And noone except the government would touch it.

Wow, some people just love being screwed.

MattF · Mar 17, 2009

this isn't just for AIG...this is for anyone who received TARP money.

But who am I kidding...not like anyone read this when it was rushed through anyway

Open mouth, insert both feet...

Lucrum · Mar 17, 2009

Quote from jficquette:

They put this in the bill and then Obama comes out and makes a fool out of himself about it.

Just like with stem cell research. He signed an executive order saying its ok but his spending bill had it explicitly prohibited.

Well in his defense, I imagine when you're pissing money away that hasn't even been printed yet as fast as he is. It's kind of hard to keep up with all the details.

tmarket · Mar 17, 2009

Quote from jficquette:

http://porkulus.butasforme.com/?p=110#bonus

Obama's Stimulus Bill Explicitly Grants AIG the Legal Right to Give Unlimited Bonuses

"(iii) The prohibition required under clause (i) shall not be construed to prohibit any bonus payment required to be paid pursuant to a writte employment contract executed on or before February 11, 2009...."

Where does it say Unlimited Bonuses?
All everybody is seeing is that existing contracts can't be nulled and voided.

If we are nulling and voiding existing contracts, why don't we start with all the existing CDS? That will cut down AIG's debt next to nothing - the only problem is all the counterparties such as GS may become insolvent or at least a lot poorer.

jficquette · Mar 17, 2009

Quote from tmarket:

Where does it say Unlimited Bonuses?
All everybody is seeing is that existing contracts can't be nulled and voided.

If we are nulling and voiding existing contracts, why don't we start with all the existing CDS? That will cut down AIG's debt next to nothing - the only problem is all the counterparties such as GS may become insolvent or at least a lot poorer.

I agree. If they are going to go around breaking legal agreements break the ones they have with GS and Foreign Banks.