AIG to American taxpayers, their kids and their kids’ kids: Screw you suckers and thanks for the party

Thanks for the tip, Freedom Fairy. I’m glad I skipped supper today.

Breaking news on the breaking of America:

moneyhappiness_vl-vertical1WASHINGTON — Despite being bailed out with more than $170 billion from the Treasury and Federal Reserve, the American International Group is preparing to pay about $100 million in bonuses to executives in the same business unit that brought the company to the brink of collapse last year.

Can you believe the audacity of these thieves? And can you believe the audacity of their Wall Street buddy, Tim Geithner?

An official in the Obama administration said Saturday that Treasury Secretary Timothy F. Geithner had called A.I.G.’s government-appointed chairman, Edward M. Liddy, on Wednesday and asked that the company renegotiate the bonuses.

Administration officials said they had managed to reduce some of the bonuses but had allowed most of them to go forward after the company’s chief executive said A.I.G. was contractually obligated to pay them.

In a letter to Mr. Geithner, Mr. Liddy wrote: “Needless to say, in the current circumstances, I do not like these arrangements and find it distasteful and difficult to recommend to you that we must proceed with them.”

Geithner asked him? He asked him?

So guess what else? Guess who gets the bonuses? Are you ready?

The bonuses will be paid to executives at American International Group’s Financial Products division, the unit that wrote trillions of dollars’ worth of credit-default swaps that protected investors from defaults on bonds backed by subprime mortgages.

That’s right folks. The people who tanked the company are getting the bonuses. And you? You get it up your ass.

UPDATE: I just read this over at RBO and feel it should be added. Liddy is AIG’s CEO.

Actually, to be fair, BushCo and Barackistan HQ are both guilty in this one:

    paulsonLiddy was recruited by former Treasury secretary Henry M. Paulson Jr. (left) to run the company. Since then, the rescue package has ballooned.

……and as we all know, Mr. Paulson is still around. These people are simply incestuous.

44 Responses

  1. The part I really love is Geithner “asking” them to renegotiate the bonuses. I would prefer the incompetent boobs in the Obama administration tell AIG to either stop the bonuses or give the bailout money back.

  2. This is sick. Why in the world are we helping these companies that keep sending millions to people who do not know how to run a company? Furthermore, I fear this is just the tip of the iceberg–there are so many ways these funds are hurting ‘average Joes’ but benefiting those in high places. Look what Enterprise rent-a-car did to get bailout funds:


    http://www.butasforme.com/2009/02/25/alert-enterprise-rent-a-car-may-have-fired-employees-as-fake-evidence-when-lobbing-for-bailout-money/

  3. contractual obligations huh? Unfortunately this may be the case. A company’s financial obligations go in this order- wages first, then the IRS, then mortgage holders, secured bondholders, general creditors, junk bondholders, preferred stockholders, & finally common stockholders. I’m not a lawyer (just studying to get a series 6 license) but if these bonuses are bundled up with the regular wages as part of a package, then perhaps they do have to be paid out first. A lawyer would know better than me. At any rate AIG appears to be treating these bonuses as wages. This is one reason why I’m opposed to these bailouts- they are too general. The Govt should be targeting the money for specific things- such as lending to customers, loosening credit, etc…. By giving these companies money to do whatever, that’s exactly what they’ll do with it. You know, like considering bonuses to be wages so that they’ll be “obligated” to pay them(selves) first.

  4. We’re all getting screwed but ultimately the most screwed of all are the “Yes We Can” teens & 20-somethings who some call Obamunists. I prefer to just call them the Generation of Suckers. Mark Steyn has more: http://www.ocregister.com/articles/old-percent-young-2334863-generation-year

  5. If BHO is not going to be a total failure by himself, Geithner will make sure he will be failure. Look at how he couldn’t even figure out Turbo Tax software. He has that face I saw in BHO, Cheney, Rahm, Nancy and Blago etc. They are total cheats and kinda evil. I don’t trust them with my 2 cents!!!!!!

    What a bunch of thieves those AIG executives are. “Robbing” from people is a felony, isn’t it?

    You Americans must fight these sick mindless creeps from destroying your country.

  6. …so it is good to hear 0 proclaim to the world investing in America is the safest you can be.

    I know he doesn’t get any arguments from these pigs at AIG.

    Also, when is he going to stop saying “Profits to Earnings Ratios”?

    P and E is PRICE to earnings…

    c’mon world, invest! Our President is a financial genius.

  7. So why was certain members in Congress so adamant about ignoring the auto workers contract in regards to the GM bailout? However, we can only “ask” Wall Street executives to cut back on their bonuses and all of the sudden the contracts of those making multi-millions is actually legally worth the paper it is printed on rather than the auto workers contract which obviously is only made up of of non-legally binding suggestions.

  8. Probably because there IS no union on wall street, and probably because GM has to compete in price with companies with a much lower cumulative cost per employee–whereas insurance companies have been price fixing for years. Not that those other auto companies are doing so great right now either. I have a sneaking suspicion that even if GM and Chrysler cut their auto prices in half, they STILL wouldn’t sell enough cars, because people just aren’t falling for the “spend” game right now. I have felt for decades that GM’s and Chrysler’s problem is more attached to their defect rate than anything else. People get fed up with shitty cars. Cars cost too much to put up with that. Their consumer reports ratings every April are dismal. Now as to why their defect rate is so high, that is not necessarily a manpower problem–but people like to think it is, especially people who hate unions. But the truth is, defects can also be caused by bad materials, ill-repaired machinery or bad processes. But whatever the reason, their cars have a lot of problems, which makes them a target for angry consumers right now. They’ve had this problem for decades. It’s just showing up more now that the economy is bad. From what I hear, they make good trucks though. Still, stocks in auto parts are going up, because people are finally figuring out that buying a new car every two years adds up to a lot of money in the can. Money they wish they had right now. It’s my guess that no matter what they do with their bloated management costs and higher labor costs per hour, they are still in huge trouble.

    To get me to buy anybody’s car right now, they would have to have a Buy One Get One Free program.

  9. American cars became junky when Auto makers quit caring about their “product” and were more interested in becoming banks (ie; GMAC). They made more money on the financing so who cares about quality! Sears did the same thing. Kenmore products used to be high quality. Then Sears became a credit banker. Instead of the price of the item it was…..how many payments for $10/month.

  10. Interesting point, imust.

  11. in addition to the financing, other bad decisions were made over the years. The slant 6, for instance, was (according to the mechanics I know) was the best engine ever made. Yet Chrysler ditched it. Stupid, stupid miststake….

  12. At first read, I, too, was angry….but then had a thought…..this is exactly what our President and Congress are doing. Pay themselves first, get those earmarks……NEXT budget, we’ll be better, we’ll reform. Yeah, right. It is all incestuous……we just get to hear more about it now with 24 hour news. Does that change anything? No. Even with coverage of how our government is stealing our earnings and our way of life……they can’t seem to stop. CEO’s of those corporations have lifestyles they need to maintain, like our leaders. They won’t go quietly, and every so often, we will get to watch a public “scolding” so we feel better “knowing” our govt is watching out for us…….they are all doing the fleecing, for themselves and for each other.

  13. sonrisa, my parents bought me a barracuda with a slant six in it. very cool.

    Wish I had it now. Worth a lot of money. Five year warrant and took a college beating.

  14. NYT–now he may reverse and tax health bennies to pay for his health plans…

  15. This company is a deadbeat welfare recipient milking the welfare system. It is badly managed and it is overly compensated for doing a bad job. I would bet what’s left of my 401k that they will go down the tubes very soon and the next two generations will be out 170 billion dollars. There is no such thing as too big to fail. If they are too big to fail then they are too big. They are a pig in a poke and a waste of money. We should cut them off immediately and let them sink, then guarantee their customer’s claims and tell these thieves to go to hell. They are not an example of capitalism, they are an example of greed and taxpayer thievery. If they can’t serve as a good example, then they should become the horrible warning to the Big Three and the rest of these companies that are committing generational theft. Leave them to serve as the warning and be done with it. under it’s current leadership at all levels, it is a loss. Let them all stand in the unemployment line like the rest of the people they have robbed from.

  16. Yup Star, after he LAUGHED at McCain for talking about this, he will do it in the end. Gee, I guess only people who make over 250k will be affected, right?

  17. Gee, I guess only people who make over 250k will be affected, right?

    Of course–only “rich” people get health thru their employers…everyone knows that. These people are such sleazes!

    And did you like his riff on how he–in his infinite–was structuring for non-bubble growth!? Ah, yes, wise One. That Summers sounded like a rambling idiot at the press club or wherever he was.

  18. He also yukked it up over McCain saying the fundamentals of the economy were strong–you know, hardworking people and so –and now he is saying it.

  19. So how would an executive get fired from AIG? You lose billions and you get a bonus.

  20. DE

    By questioning teh one

  21. Many of these CEOs have the board of directors in their back pockets. It’s all incestual. Take GE and that loser Jeff Emelt. The company has done nothing but go down the toilet since he arrived but nobody fires him. They all feed each other big time, these boards and CEOs.

    And the worst part is he is acting as an advisor to Obama. He keeps that deadbeat MSNBC, which is at the bottom of the ratings for his own purposes.

  22. Jack Welch would have told MSNBC to take a hike long ago if he were CEO. That guy didn’t put up with losers. Welch turned a healthy company over to a slug.

    I am told there is a major class action suit that was won regarding GE and misleading their employees in their company stock savings program.

  23. I have written a factual, substantive, and extensive comment that has shown the position of the Uppity Woman to be entirely baseless. The Uppity woman has shown herself to be who she is —just an Uppity, imature girl by deleting it. Immature and unAmerican.
    She oinly speaks to the ones who play her fiddle.

    ******No you did not write anything of the sort, you miserable twit. You came here defending the indefensible and insulting me and the people who do the work on this blog. You had the audacity to do so without even taking five minutes to read any of this blog. If you had, you would see that the people on this blog are far from fooled by the “socialist media” as you call it, which we reject and scrutinize here daily with great pains and research–and we are well aware that Fannie mae and Freddie Mac were the beginning of this mess–along with forcing banks to make mortgage loans to deadbeats–We were among the first bloggers to write about it. We didn’t need you to swoop down and “enlighten” us about it. Do a search on Fannie Mae on this blog, you lazy arrogant insulting bastard.

    Fannie Mae’s Godfathers’ greedy intentions didn’t give companies the right to be just as stupid and greedy by figuring out a way to bring the entire country down with subprime lending practices that most people didn’t participate in but will have to pay for. And bring down the entire country they did, right along with Fannie. They brought down everyone, including responsible people like many of us who will end up paying for this. There are plenty of us who saved all of our lives, includng myself who lost her own 401k. So your full-of-shit cracks about our “Own Greed” vs. Corporate Greed is hollow tripe. My home is Paid For, you asshole. As for being what you call a “victim” of “Modern Education,” I have plenty of it and I paid for it myself at a time when school was not dumbed down and nobody thought of “goverment checks” when it came to being educated and working your own way through school. I would venture to say I am old enough to be your mother and then some. This was yet another ignorant remark on your part borne of dropping in and crapping on a blog you don’t even read.

    Don’t you dare call me unAmerican you miserable spewing piece of crap who dares to call me the spewer. You are not welcome here when you call us names without even so much as reading our past or knowing one iota of this blogger who wrote thousands of entries and the participants who join me here. I do not call a corporation that takes welfare money by the hundreds of billions and wastes it on their own version of those “Big Screen TVs” you accuse us of buying on credit part of a “free market” — and frankly I find it hard to believe that an intelligent person would think so at this point. There is no defense of wall street any more than there is not defense of Fannie Mae. AIG is no better at this point than any other welfare deadbeat. If the free market were happening here, AIG would be long gone like they should be. THAT’s Free Market. I don’t CARE how, as you say, “Bonuses Work”. I care that they are handing them out from money that belongs to tax payers and their kids and their kids’ kids. I find welfare for the rich far more despicable than welfare for the poor.

    I hope you enjoy your bonus but hang onto it, because you will be standing in the unemployment line with it soon just like so many of the people who are paying for it.

    As for speaking to people “who only play my fiddle,” this blog and its readers are well protected against miserable insulters like you. You come here knowing everything about nothing, especially as it pertains to the information in this blog and the philosophy of the people here. There isn’t a single person on this blog who is a subprime borrower, nor are we left wing socialists gleefully awaiting a check from the likes of you. The people here are sick of people like you and you are not welcome here. My job is to make sure you land in spam permanently with instant deletion from now on, and so you shall.

    You made your rounds, now move along. If you want to control someone’s blog, go write your own instead of attempting to garner attention for yourself on someone else’s blog. You need to run along and smack your wife or kick your dog or whatever it is you do for kicks.****

  24. “Can you believe the audacity of these thieves? And can you believe the audacity of their Wall Street buddy, Tim Geithner?”

    What else would you expect? They’re thick as thieves.

    The audacity was a creep Prez telling US only little Tax Cheat Timmy could save the day.

  25. plant those gardens folks..

  26. Congratulations, Uppity, You must be the first victim of the latest round of astroturfing by whatever they are calling Obama’s grass:(net)roots army. I read yesterday that they were getting orders to go out and spread the word about the wonderfulness of the O’s bailout schtick, but I thought it didn’t start till Monday. Guess Caesar jumped the gun. I loved your response!
    Insofar as the post, I seem to recall, once upon a time, being a mid level manager, where we were given objectives, and measured against those in order to get a pay raise and/or bonus. The levels of measurement were – Did not meet, Meets, Exceeds. Exceeds got the raise and bonus, Meets got a lower raise, and Did not Meet got 6 months to clean up their act. I guess that only applies to mid and lower levels. I was always asked to take promotions, which I refused because I couldn’t do politics without gagging, but I’m now realizing that I could have been on easy street. There apparently is no performance evaluation in the upper stratosphere of major corporations – it doesn’t matter anymore whether the company makes or loses money, or whether you are incompetent, you still get the brass ring.
    I’d still refuse, but the money would be nice.

  27. I have had it!! It is time to stop being angry and TAKE ACTION!! Anybody else? A nationwide Taxpayers’ Revolt is what we need.

  28. Not really HT. The original post of this character was more of a far far far right wing nutbag. It’s people like this who are the reason that far far far left wing nubags are in charge. It was fairly obvious he never read a thing on this blog or he would have known we are not “entitlement” people are socialists — who listen to “socialist media” and he wouldn’t be accusing us of not saving, living above our means, and doing this to ourselves just like a typical addle headed far rightie in typical knee jerk mode–not unlike a typical far leftie.. He was defending why it is that they are “forced” to give those bonuses due to contracts and blah blah blah. The fact is, AIG lied to us on the second stealing round when they promised there would be no more bonuses, knowing damned well they were in the mix. And they couldn’t wait to spend the money we borrowed from the Chinese to do it.

  29. Now you understand why I hate what both of these parties have become. Neither or them have the interests of democracy in mind. Fascism comes in two flavors now.

  30. Foxx, mailing teabags like those folks are doing isn’t going to do a thing. Do they actually think congress opens their own mail? We have already seen them shut down their mail servers when they get too many annoying emails from the peons.

  31. Sonrisa, if the government would stop tampering with capitalism, it would take care of itself. All we are doing is delaying the inevitable pain and we will have trillions in debt to pay besides.

  32. Thanks for the explanation. With what was left of his note, and with the information about the astroturfing effort that is to come, I assumed it was the first of the coming onslaught. Odd that this character would just suddenly appear and attack. Perhaps there really is an Ides of March syndrome – cue the Jaws music.

  33. well that was his second post, HT. His first one landed in spam and he wrote the second one. The first post is the one I was “quoting” from.

  34. Uppity Woman–Sonrisa, if the government would stop tampering with capitalism, it would take care of itself. All we are doing is delaying the inevitable pain and we will have trillions in debt to pay besides.

    — yep, I totally agree. If it was up to me, there would of been no bailout. But since Congress was hell bent on a bailout, the money should of been given out with some very narrow specific strings attached- not to mention a short leash- the money was to be used for the sole purpose of loosening up credit. That’s it. Nothing else. But Congress didn’t pass that kind of bailout bill. And with each subsequent bailout- unless they start getting specific about what the money is to be used for- things will get worse & recovery will not only be slower in coming, but slower in finishing once it gets here. Infact we may never get back to where we once were. This country could very well end up being the world’s largest banana republic.

  35. Uppity – This says ait all!

    An official in the Obama administration said Saturday that Treasury Secretary Timothy F. Geithner had called A.I.G.’s government-appointed chairman, Edward M. Liddy, on Wednesday and asked that the company renegotiate the bonuses.

    That Government appointed chairman was a damn CLERK for Sears & Robuck – in Chicago of course. Since 2004 they moved Liddy a;; the way up to “President” of All State Ins – also owned by Sears and of course gave him appointments to some of the ever proliferating and stealing boards that are endemic in Chicago.

    Liddy could not run the DPW for a small town – What the heck is he doing in the top seat at A.I.G? Laundering money for the Chicago MOB of whom the current administrations is part of????

    I hope Bernie Madof is not the only one getting some “Justice” – These crude crooks are probably the premier and ONLY reason Gitmo should stay open – a Chicago of cages on the Caribbean.

    If we truly want to FIX A.I.G – then they need Hank Greenberg – as much as I hate to say that – it is the truth.

  36. I think the American people are getting screwed more than everyone is aware of, after all, our media is controlled and censured the same as any other country. There is no reason why taxpayers HAVE to bailout companies. That’s convoluted thinking that we have been spoon feed to accept what is going on. I thought that just maybe the Obama administration would be different, but I have to say I’m rapidily becoming disillusioned. It seems it’s going to be business as usual because the same hands are pulling the presidential strings. Sigh…

  37. I would love to see the media stop following around Levi and Bristol and start hounding the AIG bonus pigs and the wives of these swine. Follow them to their retreats, manicures, botox injection appointments, shopping sprees, etc. Bring a couple of kids along to ask these people, do you feel you are entitled to spend my college fund and piggy bank money on massages and yet another pair of Jimmy Choo’s?

  38. Nellie name-drops Hank Greenberg:
    “If we truly want to FIX A.I.G – then they need Hank Greenberg – as much as I hate to say that – it is the truth.”

    I was lurking much of yesterday in this thread but didn’t need to post because the concensus view expressed here at Uppity’s reflects my pov on AIG and Greenberg. We’re hardly alone, Nellie, judging by comments on call-in shows and even in such mainstream, conventional venues as Conde Nast’s Portfolio.com, where Felix Salmon, a contributing editor/blogger, must have relied on his experience as founding blogger for Roubini’s own Economonitor, when he wrote about AIG in his March 2nd editorial, The Aig Scandal:

    It’s fascinating to me that AIG is still a publicly-listed company: the official Treasury statement goes to great lengths to perpetuate the fiction that AIG and the US government are two separate and distinct things, and to empasize that this period of “public ownership” (they don’t use the word “nationalization”) will come to an end “as rapidly as possible”.
    […]
    the scandal is that AIG could have earned billions of dollars by selling insurance against a meltdown, even as it was wholly incapable of paying out on those policies. I wouldn’t be surprised to learn that Hank Greenberg was still a billionaire, even as the policies his company wrote have cost the average American household some $1,600. It’s time for his wealth to be confiscated

    Nellie, Hank Greenberg is the last person we need (unless you’re just joking about Hank Greenberg the baseball player being more suitable). His wealth hardly makes him less of a crook. You can’t derive good results from such a rotten source.

    In his AIG’s Not Very Transparent List of Counterparties update yesterday, Salmon tells us about and links to AIG’s counterparties list (PDF), noting its four appendices:

    If you’re not already familiar with the intricacies of AIG’s operations, it’s very easy to just start adding up the numbers in the various appendices, coming up with a kind of bailout league table: Goldman Got $12.9 billion! Barclays got $8.5 billion! […] The big winners here are SocGen and Goldman Sachs — and it’s worth noting that… the two biggest recipients of government money are hidden in the middle of the list.

    Btw, Salmon’s “perpetuate the fiction” comment is an understatement. Just consider the history of AIG, going back to WWII when the company’s founding father, Cornelius Starr, ran the gov’s “insurance intelligence” project of the OSS, which became the CIA. This might be a good time to (re)read an easily found MSM article on it, written in 2000 by Mark Fritz:

    The Secret (Insurance) Agent Men
    Mark Fritz/ L.A. Times
    single-page version at http://www.stockmaven.com/MarkFritz.htm
    original at http://articles.latimes.com/2000/sep/22/news/mn-25118

  39. Uppity, have you seen this?? Barney Frank needs to listen to himself sometimes–he needs a serious dose of Take Your Own Advice, Dude…..
    http://news.yahoo.com/s/ap/20090316/ap_on_bi_ge/aig_outrage

  40. Yeah, Frank and Dodd take every opportunity to Express Indignation, Empathy, Integrity and Outrage– it’s their version of the old “E I, E I, O” song and they’re about as likely to take real action against the crooks as Old Macdonald would have for hangin’ on to the family farm.

    I want my money back! Any talk from Frank and Dodd about that happening soon? Nope. Any word about prosecuting and punishing the men responsible, maybe invoking the RICO statutes (or similar) and confiscating their assets in order to compensate their victims, i.e. we, the people of this country? Nah.

  41. ding, ding, ding….. UW, you’re so F#$^%^ right on!

    “if the government would stop tampering with capitalism..”

    This stimulas isn’t about stimulating (adding fuel to) the engine of capitalism, but holding fuel back and destroying it, and that’s why these dumbass economists running around touting the recovery due to capitalism are so off base…. WHAT CAPITALISM?! This stimuli is only about O’s base voters (who I’m sure they have to deliver their checks to in the dark for the light would make them scurry like cockroaches– with all due apologies to coakroaches everywhere.) And because there’s no desire to actually stimulate capitalism, all these fricken’ moochers will be back in a few months for more.

    ps: Love the smack down! Giv’em hell! I too find myself drifting through the Universe “Party free”–“Clowns to the left of me, Jokers to the right, here I am!” You know where I’m stuck!

    As always, you’re the best!
    Jack

  42. ***Can you believe the audacity of these thieves? And can you believe the audacity of their Wall Street buddy, Tim Geithner?***

    Yeah, but I thought it was only the evil Republicans who had all the money and rich buddies on Wall Street. You mean that was just a load of hypocritical leftist class envy propaganda crap?? Say it ain’t so!!

  43. […] AIG to American taxpayers, their kids and their kids’ kids: Screw you suckers and thanks for the ….   That summarizes AIG’s business practices so far. That’s right folks. The people who tanked the company are getting the bonuses. […]

Comments are closed.