Frank on AIG: ‘Maybe it’s time to fire some people.’
Frank on AIG: ‘Maybe it’s time to fire some people.’
Over the weekend, the revelation that bailed-out insurance firm AIG was still doling out hundreds of millions in “retention bonuses” sparked bipartisan outrage. On NBC’s Today Show this morning, Rep. Barney Frank (D-MA) called for the government to fire AIG executives. “These bonuses are going to people who screwed this thing up enormously,” he said:
FRANK: The federal government now is the 80 percent owner. … So, since the federal government, thanks to the Federal reserve’s use of the power under the 70-year-old statute, now essentially owns that company, maybe it’s time to fire some people. We can’t keep them from getting the bonuses, but we can keep some of them from continuing in their jobs.
“Well, if they were in high school, they wouldn’t have gotten retention, they would have gotten detention,” Frank said. Watch it:
“And yes, I think the — the time has come for the federal government to put some people in charge,” he added.
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Either return 2/3 of the bonus or lose your job
March 16th, 2009 at 11:52 amI’m reading that by law, the bonuses must be paid; they were negotiated prior to the bail-out. So my question is, if the government hadn’t bailed them out, where would that money have come from?
March 16th, 2009 at 11:53 amnot fire. incarcerate.
March 16th, 2009 at 11:54 amIf their company is doing so poorly that they need a bailout, how can they get a performance bonus? The company is in the tank. No one gets a bonus! At least, that’s how it happens out here in the real world, not the Wall Street world.
March 16th, 2009 at 11:56 amDO IT.
March 16th, 2009 at 11:57 amWell the bonuses are part of total compensation of their contract blah blah blah…
Yeah, let’s pre-privatize AIG. Put it in receivership and assign blame based on the amount of performance compensation they received.
March 16th, 2009 at 11:59 amIf, as I understand, these bonuses were not tied to performance, then the question is – WTF? Bonuses just for you being you? That’s what salary is.
Thing is, AIG’s financial arm was losing big money when these contracts were written – $5.3 billion as I recall in 2007’s last quarter. These losses were described as “merely on paper.” The contracts reek of a ploy to misrepresent, to misinform investors of AIG’s plight at the time. The admin needs to challenge the contracts as fraudulent. If it doesn’t, it’s derelict.
There’s a reason Dante consigned fraud and treachery to the last two circles of Hell, there is no sin more vile.
March 16th, 2009 at 12:00 pmContracts are not bomb-proof, in any circumstance.
They’re made to be broken. Every contract, if negotiated properly from both sides, contains elements which come into play when the contract is in dispute (ends up in court).
Besides, giving bonuses to employees regardless of the companies financial health doesn’t help retain talent.
It just prepares them quite nicely for their eventual unemployment resulting from the pending bankruptcy and collapse of the their former employer.
Fcuking fascist pigs.
March 16th, 2009 at 12:01 pmmachost Says: I’m reading that by law, the bonuses must be paid; they were negotiated prior to the bail-out.
Really? (I’ve not looked it up myself).
Do we KNOW that bonuses were negotiated to be honored between the Govt and AIG, because the government is acting mighty surprised about it all (of course there’s certainly some political grandstanding from some congress critters).
As bonuses are supposed to be performance-related, in principle they shouldn’t get anything. Unless, I guess if the performance bonuses were keyed to making the principals of the company obscenely wealthy, rather than the company as a whole, in which case yeah, they did a great job and desrve their bonuses!
It’s all in the details isn’t it?
March 16th, 2009 at 12:07 pmHow do you negotiate a bonus? How does a bonus (known throughout the rest of the world as compensation over and above ones salary usually given as thanks for a job well done) become a legal obligation? Why does the financial/banking industry seem to be the only industry in the world where this warped concept makes sense. What kind of legal standing can there be to protect a “bonus”?
March 16th, 2009 at 12:08 pmGee, ya think Frank? These SOBs have had the high life at the expense of the taxpayers far too long. Strip them of their cash and send them to prison. I have had about enough. People in Europe don’t put up with this crap. The French would be torching cars.
March 16th, 2009 at 12:08 pmGo take a look at all of Josh Marshall’s reporting an analysis on this over at TPM. I would agree that there is no such thing as an iron-clad contract, and AIG/Liddy is thumbing its nose at We the People.
Isn’t bankruptcy in essence the ultimate “rewriting of contracts?”
PEACE
March 16th, 2009 at 12:09 pmThere’s a simple solution to the bonus issue. Reinstate the 90% differential tax rate on income over $500,000. That pretty much prevented this sort of abuse for a long time. Then they can give each other all the bonuses they want and call them whatever they want.
March 16th, 2009 at 12:10 pmSome of us could live the rest of our lives on some of those bonuses. AIG had record breaking losses—the worst ever.
F@ck ‘em.
March 16th, 2009 at 12:11 pmbusinesses bound by contracts?
HA!
just ask anyone in a union how seriously “businesses” take “contracts”.
lame excuses are what makes America great?
wow.
March 16th, 2009 at 12:14 pmFIRED?!?…..how about jailed without charge indefinitely.
March 16th, 2009 at 12:14 pmPast time Barney, way, way, way past time.
The Upper management crime wave just keeps on building.
They are trying to grab as much of our cash as possible till they are discovered as the frauds that they are.
FU wall street.
March 16th, 2009 at 12:14 pmMAYBE??? WHAT MAYBE??? This is the no-brainiest of no-brainers!! Fire the fu*kers! And by the Summers is full of shjt when he says that AIG has “contractual obligations” to disburse millions of dollars to the very people who are primarily responsible for AIG’s meltdown. The Government owns roughly 80% of AIG thru it’s bailouts. And the Gov’t required the automaker to re-negotiate it’s “contractual obligations” with their unions in order to receive it’s bailout money. So, why can’t we re-negotiate these AIG contracts?
March 16th, 2009 at 12:15 pmAlso, TPM points out that the bonuses actually total approx. $1.2 billion, with $450 million going to the financial products folks. The very folks who created the collapse of AIG.
PEACE
March 16th, 2009 at 12:18 pmThe “contract” dodge is pure bullsh¡t! Greenwald has a great column on it:
March 16th, 2009 at 12:18 pm
I am tired of executive pay across the board. Someone needs to do something about this. Like a 90% progressive tax for 1 million or more income.
March 16th, 2009 at 12:18 pmFire! How about locking them up, for starters? What is Obummer doing about this? He is someone completely different from the Obama that was running for president. He’s looking ahead, letting criminals roam free!
March 16th, 2009 at 12:18 pmIn finance, bonuses aren’t necessarily ‘You’re awesome! Here’s some extra money’ it can be tied to your actual performance. You sold $10,000 worth of widgets in a quarter, you get $500. Some of these bonuses are no doubt commissions by other names.
However, its still massively Effed up. The tax payer shouldn’t be on the hook for the financial obligations to the white collared employees of failed companies.
March 16th, 2009 at 12:19 pmOnly the fringe righties and true believers thought our President was anything other than a Clintonesque moderate during the primaries.
The only democratic candidate that would have had the stones (to use a Carlsonism lol) to prosectute was Dennis K
March 16th, 2009 at 12:24 pmWhat is the fu(kin’ problem? We, the taxpayers, own them. Therefore, we, the taxpayers, tell them what to do, not the other way around!
March 16th, 2009 at 12:24 pmI think it’s time to stop falsely believing we can correct all our ills by working “withing the system”.
THE FCUKING SYSTEM IS BROKEN, CORRUPTED TO THE CORE.
Time to burn down the house and rebuild.
And couldn’t care less if it burned with all the current crop of politicians inside.
March 16th, 2009 at 12:31 pmJK – Rockin the crazy.
Good for you, homie!
Live strong, brave patriot!!
YOU are what makes America great, my friend!!
[somebody grab the restraints while he's distracted - who's got the tranq gun?]
March 16th, 2009 at 12:35 pmArchieB pullin’ wingman dity on this one – good for you Dullard1 – I saw that blueball was busy battling communism on another thread.
Give us a “we surround them” update, wontcha? Tell us about how the Glenn “Rad Dawn” Beck Movement has taken the Country by storm.
March 16th, 2009 at 12:37 pmBoldfaceLiar
March 16th, 2009 at 12:38 pmLeft his fryer
To spout off his nonsensical stuff
He steals a name
To play his game
But when challenged he leaves in a huff.
Congress can grant immunity to AIG so that it can’t be sued thus allowing AIG to not pay out those ill-conceived bonuses.
http://www.salon.com/opinion/greenwald/
- Tom
March 16th, 2009 at 12:41 pmNow Ar Ar Binks
March 16th, 2009 at 12:43 pmGives his “mesa thinks”
In language often hard to decipher
To avoid what you ask
He’s up to the task
For as a petulant child, he’s a lifer.
#20 hanshiro
Union contracts are negotiated within a specified time period, like every 3 years or every year. If this was the case with the AUW then it isn’t the same as the contracts being discussed with AIG. If the Union went in and amended a current contract then I agree, the contracts at AIG should be amended.
Liddy, from AIG, stated there would be lawsuits, I say “so what”. The recipients would have had to hire lawyers to fight non payment. The government doesn’t want AIG to fail, but such abuse should not be tolerated.
March 16th, 2009 at 12:45 pmIt is difficult to imagine that these contracts did not require some consideration on the part of the employees claiming the bonus other than showing up. Either AIG should assert any contractual defense it can muster and let these superstars take their chances with a jury or if it turns out that AIG management did manage to enter into contracts that required payment of bonuses even to people who blew up the company the shareholders (us) should fire management and sue them for breaching their fiduciary duties to the shareholders.
March 16th, 2009 at 12:47 pmIs their no cure for Bold Font Syndrome?
March 16th, 2009 at 12:48 pmJohn Kerry
How can it be “buyers remorse” when YOU didn’t buy anything?
March 16th, 2009 at 12:48 pmSign me up for this idea. Fire away.
http://www.pufferfishblog.com/
March 16th, 2009 at 12:49 pmFRANK: The federal government now is the 80 percent owner. … So, since the federal government, thanks to the Federal reserve’s use of the power under the 70-year-old statute, now essentially owns that company, maybe it’s time to fire some people. We can’t keep them from getting the bonuses, but we can keep some of them from continuing in their jobs.
What do you mean we can’t stop them from getting their bonuses? We own the damn company! Fire the bastards and let them sue to get their bonuses. Let’s see what a jury has to say about this, and I want to be on the jury!
March 16th, 2009 at 12:52 pmNot only didn’t John Kerry buy anything, he didn’t vote for anything either. We have a law in this country that doesn’t allow nine year old’s to vote.
March 16th, 2009 at 12:52 pmI think it’s funny when the obviously dumb try to make smartass contributions.
There’s no mockery like self-mockery.
Thanks again, JK. Nobody does it better.
March 16th, 2009 at 12:53 pmShould somebody tell JK that Bush and Henry Paulson gave AIG that money?
March 16th, 2009 at 12:54 pmshoeless Says:
——————————————————————————–
Should somebody tell JK that Bush and Henry Paulson gave AIG that money?
Why bother? He wouldn’t understand.
March 16th, 2009 at 12:59 pm.
The bonus money is tax payer money…
… I never agreed to pay my taxes to reward the worst financial loss, EVER!
SHOW ME THAT CONTRACT!
.
March 16th, 2009 at 1:00 pmshoeless, BoldFaceLiar would probably say that President Obama made Bush and Paulson do it. Facts are wasted on this troll – he is only good for whack-a-troll.
March 16th, 2009 at 1:01 pmProgressives don’t shop at Walmart. All those creepy people you see when you’re shopping there are Republicans.
March 16th, 2009 at 1:17 pmGee Archie – Dow’s way up again today.
Guess that means you’re wrong about everything.
Isn’t that how wingnut logic operates?
Too bad for you.
March 16th, 2009 at 1:20 pmPresident Obama said, “I’ve asked Secretary Geitner to use that leverage and pursue every single legal avenue to block these bonuses…”
No, John Kerry, I’m not disappointed.
March 16th, 2009 at 1:27 pmHow about some prison time. These idiots are like those firefighters starting fires so they can put out the fires for fame or financial gain.
March 16th, 2009 at 1:30 pmThe pseudointellectual troll taking the name of a politician he despises is sublimating his self-loathing and inferiority by his choice of screen name and posting style. His overuse of bold print represents a compensatory mechanism in which his projections of his own unacceptable impulses can be expressed via a style that symbolically inflates his importance and, thereby, provides emotional scabs to his frequently wounded narcissism.
March 16th, 2009 at 1:33 pmI hope the above qualifies as “intellectual criticism”, even if not understood.
March 16th, 2009 at 1:35 pmArchie B Says:
Oh, the irony…..
No, that was sarcasm, Ar Ar.
March 16th, 2009 at 1:36 pmrhf never asked for “intellectual criticism”, for one reason, Ar Ar.
March 16th, 2009 at 1:38 pmJK – don’t use the word intellectual. your quality is already established. real ideas don’t come from the Rite-Aid clearance bin.
Archie – it means you’re wrong – couldn’t you gather that from my post? You really forgot about Dubbie’s bailout bonanza quickly, didntcha?
I’ll have to start double-checking some of those posts to be sure I’m writing at a level appropriate to your abilities.
Which of the Hooked on Phonics tapes are you up to now?
March 16th, 2009 at 1:39 pmArchie B Says:
——————————————————————————–
#
#
PatrioticLiberalChristian Says:
Archie B Says:
Oh, the irony…..
No, that was sarcasm, Ar Ar.
Pwned, again, “plc.”
Really? Please explain.
March 16th, 2009 at 1:40 pmJK – How’s the Dow doin?
That’s all you care about anyway, right?
Got anything there besides complaints?
You sound like a 6-year-old on a long car ride.
March 16th, 2009 at 1:44 pmArchie B Says:
PatrioticLiberalChristian Says:
The pseudointellectual troll taking the name of a politician he despises
Hypocrisy describers it better. A massive dose.
Really? Please explain.
March 16th, 2009 at 1:45 pmThanks though, for helping me get my daily allowance of schadenfreude. Your pain gives me great joy. Please continue to come and share it with us.
GO OBAMA!!!
DEMOCRATS FOREVER!!!!
NEENER NEENER NEENER!!!
March 16th, 2009 at 1:46 pmTink befoar yu poast, morans!!
March 16th, 2009 at 1:47 pmArchies comments don’t actually mean anything. He just strings together random words, interspersed with periods, so that they occasionally look like sentences.
March 16th, 2009 at 1:56 pmYour dog told you to write that post, didn’t he?
March 16th, 2009 at 1:58 pmshoeless, I’m sure that Archie can respond in a thoughtful, coherent manner to my question. Remember, he can fall back on his native language with me if the need arises.
March 16th, 2009 at 2:01 pmWhat ever bonuses these rats want should be triple and subtracted that amount from their pay. Then fired those arrogant bums.
They are talking shit about they need to retain the best people. HAHAHAHA
March 16th, 2009 at 2:01 pmGTFOOH
some dude honking about teleprompters wonders where the “intellectual responses” are???
I wish I could make fun of you as effectively as you do, JK.
guess I’ll just leave you to your craft.
March 16th, 2009 at 2:05 pmIf any of us were responsible for tanking the company we were in charge of, where would the bonuses we contracted for be?
IN THE CRAPPER NEXT TO OUR JOBS.
March 16th, 2009 at 2:28 pmJK dribbles out the ignorant tripe Rush TOLD him to think like the stupid brainwashed moron he is. JK you are just plain stupid and worthless. The stench of your stupidity makes me ill.
March 16th, 2009 at 2:55 pmArchie B Says: 45
AB you are ignorant. You are a punk. You are a troll. The only thing you add to this site is someone else really stupid to laugh at. Dont you have any self respect at all?
March 16th, 2009 at 2:58 pmJK 51
Your stupid rambling insult laden nonsense didnt deserve a substantive response. You are a moron. You didnt make any substantive criticism. You repeated the rightwing talking points that are both ignorant and baseless. You are a moron and a troll. You only want to insult us AND Obama. You are a racist ignorant punk. SHOW some substance and you might GET some substance. On the other hand I dont think you are capable. I dont think there is ANYTHING in your head that Rush didnt put there.
March 16th, 2009 at 3:01 pmArchie B Says:
PatrioticLiberalChristian Says:
The pseudointellectual troll taking the name of a politician he despises
<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<
He is right
Oh, the irony…..
<<<<<<<<<<<<<
Oh the stupidity. Then again thats all you have.
March 16th, 2009 at 3:02 pmArchie B Says:
Pwned, again, “plc.”
<<<<<<<<<<<<<<<<<<<<<<
Oh the delusions of adequacy
March 16th, 2009 at 3:04 pmIt’s past time to fire these money stealing clowns, it’s time for jail.
March 16th, 2009 at 3:06 pmJK you ignorant racist piece of garbage. How do you stand yourself? Doesnt all your worthlessness and massive stupidity make you want to vomit when you look in the mirror?
March 16th, 2009 at 3:06 pmArchie B Says:
PatrioticLiberalChristian Says:
The pseudointellectual troll taking the name of a politician he despises
Hypocrisy describers it better. A massive dose.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
No AB. PLCs post was clever, funny, and intelligent. You are just too stupid to understand any of that. YOU are a moron. That isnt PLCs fault. My GOD you are an ignorant punk.
March 16th, 2009 at 3:08 pmPatrioticLiberalChristian Says: Archie Bunker says
Really? Please explain.
<<<<<<<<<<<<<<<<<<<<<<<
Sorry PLC. An explanation would require higher brain function. You stand a better chance of obtaining that from a carrot than from AB
March 16th, 2009 at 3:10 pmJK you are an ignorant racist troll and a worthless piece of garbage. No one takes you seriously. I bet even your mother regrets not having drown someone as stupid and racist as you at birth
March 16th, 2009 at 3:12 pmEugeneDebs, thank you for the kind comments and the support. I didn’t really expect a rational response from Archie B. It seems that he goes away in one of two ways: I start my Ar Ar Binks routine or someone asks a straightforward question and keeps repeating the question, not allowing any distractions. I like how Archie’s “oh, the irony” post is between my sarcasm post and prediction that it won’t be understood. Talk about irony.
As for JK, I refuse to call him by his chosen theft-name. He is BoldFaceLiar to me. And I will not engage him in debate as he is incapable and not seeking it.
March 16th, 2009 at 3:22 pmYeah, like Frank, who not only got us in this mess, but is trying to keep us in it. Hey Barney, how’s the escort service workin’ for you?
March 16th, 2009 at 3:24 pmPatrioticLiberalChristian Says:
True they are both trolls and JK is one of the dumbest trolls EVER.
March 16th, 2009 at 3:31 pmCaptain Brodad Unkabuddy Says:
VERY stupid post. So Barney Frank got us INTO this mess while in the MINORITY party in the house? You really are a moron. The escort reference really shows how stupid you are as those who know what happened know only someone beyond the pale ignorant would regurgitate THAT bit of hivemind stupidity. Do you get off being a brainwashed moron and making a fool out of yourself? I mean that HAD to be your aim here. You are stupid AND boring at the same time.
March 16th, 2009 at 3:34 pmEugeneDebs, any chance the Captain Swiftboat who just arrived is BoldfaceLiar?
March 16th, 2009 at 3:35 pmShould have called their bluff and let the whole mess fail.
AIGs total stock value is less than 1 billion while some 150+ billion has been put into this worthless greed zombie
March 16th, 2009 at 3:39 pmPatrioticLiberalChristian Says:
Good chance. Same semi coherence same posting of flat out INCORRECT BS talking points as facts. I am just not sure how common that is among the braindead portion of the rightwing
March 16th, 2009 at 3:50 pmJohn Kerry Says:
Got news for you libs. George Bush and Ronnie baby wanted to be REAL people (look to the left now) and not robotic like community organizers (look right now). C
CASE CLOSED!)
NO NOT LOOK STRAIGHT AHEAD, OK!
Yeah, you be keeping it real baby!
Really stupid
Really illegal
Really dishonest
Really brain-dead on arrival
Case closed? Just spewing garbage is not an argument. It must hurt to know you are cast into the toilet bowl of history and we have pulled the flusher.
Bold faced liar is just another poo slinging simian with delusions of intellect. Keep banging those rocks together sparky, in a million years you might evolve opposable thumbs.
March 16th, 2009 at 5:18 pmFire yourself and your bonues-lover people, not AIG employies.
March 16th, 2009 at 5:21 pmMaybe?
March 16th, 2009 at 7:13 pmWTF?
Let me see if I’ve got this right…
Bawney Fwank and the rest of the crooks in Congress F up the economy and earn an “approval” rating LESS than then President George Bush and they proceed to GIVE THEMSELVES HEFTY RAISES and we are supposed to be outraged at AIG???
That, my friends is RICH!
March 16th, 2009 at 8:23 pmno Tim, it’s a stretch, on your part.
March 16th, 2009 at 8:27 pmTimmeh. Still keeping your hand in for the stupidest troll around I see. Well that was certainly a bone ignorant post. A baseless and unfounded assertion. Basic stupidity fed you which you dutifully believe like you are told to. Its stupid but then so are you. Glad to have you back but there are some other really stupid trolls here giving us a free clown show. You classic stupidity is always a treat however.
March 16th, 2009 at 10:04 pmIf they can accept financial aid from the government, they now should be open to management assistance. They obviously have failed their company and only have their own best interests at heart. Start with Liddy, and fire them all. Go to the business schools and hire the young kids that are willing to work for a decent salary and will turn this company around<strong.
March 17th, 2009 at 6:50 amI think it’s time for Frank to be fired.
March 17th, 2009 at 9:02 am