http://www.foxnews.com/politics/2009/10/14/treasury-didnt-understand-aigs-bonus-plans/
In a report released Tuesday, Barofsky wrote that the Treasury Department did not understand AIG's byzantine pay structures when it gave the firm billions in aid last fall. The government has committed a total of more than $180 billion to wind down the New York-based insurance and financial services conglomerate, and now owns about 80 percent of the company.
Why the Hell would you give taxpayer money to a company without knowing how it would potentially be used?
Showing posts with label AIG. Show all posts
Showing posts with label AIG. Show all posts
Wednesday, October 14, 2009
Tuesday, March 31, 2009
A bill to let Big Government set your salary
http://www.washingtonexaminer.com/politics/Beyond-AIG-A-Bill-to-let-Big-Government-Set-Your-Salary-42158597.html
It's staarttingggg...
"The measure is not limited just to those firms that received the largest sums of money, or just to the top 25 or 50 executives of those companies. It applies to all employees of all companies involved, for as long as the government is invested. And it would not only apply going forward, but also retroactively to existing contracts and pay arrangements of institutions that have already received funds."
It's staarttingggg...
"The measure is not limited just to those firms that received the largest sums of money, or just to the top 25 or 50 executives of those companies. It applies to all employees of all companies involved, for as long as the government is invested. And it would not only apply going forward, but also retroactively to existing contracts and pay arrangements of institutions that have already received funds."
Friday, March 27, 2009
House Health Plan to Include Government-Run Option
http://www.bloomberg.com/apps/news?pid=20601087&sid=axI6NVjq8cfI&refer=worldwide
Well, here it comes. I find it amazing that Nancy Pelosi can say this:
"This is not only about the health of individuals in our country, which will be justification enough...It’s about the competitiveness of our businesses to make them globally competitive because they are competing with companies and countries where the federal government -- their governments -- pay for health care. They don’t have to bear those health care costs.”
What happens to all the private insurance companies that can't compete with the government because the government gets free revenues through tax payers? And given the track record of other countries sub-par government run health care, why in the world would you want that? Every one can have health care, but it's going to be really crappy. Why do you think that our country has some of the greatest medical technologies in the world? It certainly isn't because the government was involved, but specifically because the government was not involved.
Well, here it comes. I find it amazing that Nancy Pelosi can say this:
"This is not only about the health of individuals in our country, which will be justification enough...It’s about the competitiveness of our businesses to make them globally competitive because they are competing with companies and countries where the federal government -- their governments -- pay for health care. They don’t have to bear those health care costs.”
What happens to all the private insurance companies that can't compete with the government because the government gets free revenues through tax payers? And given the track record of other countries sub-par government run health care, why in the world would you want that? Every one can have health care, but it's going to be really crappy. Why do you think that our country has some of the greatest medical technologies in the world? It certainly isn't because the government was involved, but specifically because the government was not involved.
Tuesday, March 24, 2009
Checks and balances at work
http://bloomberg.com/apps/news?pid=20601087&sid=avHD4kiVpgRI&refer=home
While I really have no hope that I will be fully behind any taxation law that comes from this, I am impressed by how our checks and balances seem to be working. Well, check that, I shouldn't be surprised because this is exactly why our government was set up as it was. The Founders in their infinite wisdom warned against passion of the moment and the rule by mob. Lawmakers jumped to punish AIG because that is what the mob wanted and was politically acceptable at the time. But due to the legislative process, level heads are allowed to prevail over time. Well, maybe.
At the indication that Obama had concerns over the AIG taxation, congress is now revisiting the original bill, hopefully to moderate it a bit. Let us hope that whatever comes from this is, as Obama put it, not due to the passion of the moment. We can only hope...
While I really have no hope that I will be fully behind any taxation law that comes from this, I am impressed by how our checks and balances seem to be working. Well, check that, I shouldn't be surprised because this is exactly why our government was set up as it was. The Founders in their infinite wisdom warned against passion of the moment and the rule by mob. Lawmakers jumped to punish AIG because that is what the mob wanted and was politically acceptable at the time. But due to the legislative process, level heads are allowed to prevail over time. Well, maybe.
At the indication that Obama had concerns over the AIG taxation, congress is now revisiting the original bill, hopefully to moderate it a bit. Let us hope that whatever comes from this is, as Obama put it, not due to the passion of the moment. We can only hope...
Monday, March 23, 2009
AIG's Rivals Blame Bailout For Tilting Insurance Game
http://online.wsj.com/article/SB123776549185209083.html
Very interesting article about the other side of the coin. The media is only talking about how good or bad the government assistance to AIG is. Who's looking out for AIG's competitors who for years have run legit businesses? Will this bailout of AIG create an unfair advantage for an undeserving company over companies that actually deserve our business? By intervening in the free market, the government has potentially created an unlevel playing field. If this continues, a very unfriendly business environment may very well emerge.
The CEO of the company I work for, Ted Kelly, is quoted in this article which was linked to on Liberty Mutual's internal website.
Very interesting article about the other side of the coin. The media is only talking about how good or bad the government assistance to AIG is. Who's looking out for AIG's competitors who for years have run legit businesses? Will this bailout of AIG create an unfair advantage for an undeserving company over companies that actually deserve our business? By intervening in the free market, the government has potentially created an unlevel playing field. If this continues, a very unfriendly business environment may very well emerge.
The CEO of the company I work for, Ted Kelly, is quoted in this article which was linked to on Liberty Mutual's internal website.
Sunday, March 22, 2009
Obama to seek oversight of 'executive pay at all banks, Wall Street firms and possibly other companies'
http://www.iht.com/articles/2009/03/22/america/22regulate.php
Well, you wanted change, here you go, the the totalitarian kind. I find this kind of intervention absolutely abhorrent given that it was government meddling in the first place that got us into this mess.
We now have a government, OUR government, dictating to supposedly private sector businesses what they can and cannot pay their executives. Something that the main stream media failed to present about those AIG bonuses is that many of them were incorporated in retainer contracts. These contract bonuses (which the government allowed by the way in the first bailout bill) helps a company to retain their highest performing talent. Most of the executives that aided in this mess are long gone and these bonuses were for the people trying to stop the hemorrhaging. What a welcome message to them, courtesy of the US Government.
You just wait, right now the government's wrath is on Wall Street. What happens when they decide that the way your company is running things isn't in the "best interest" of the country. Fear-mongering...maybe, but mark this date and this week as another potential turning point.
This country is of, by, and for the people. The government works for us, not the other way around. Stand up people and say enough is enough. What makes you think that their ideas are any better than yours? These politicians are only there because they won an election, not because they are subject matter experts. Start making noise. As Samuel Adams once said:
"It does not take a majority to prevail, but rather an irate, tireless minority, keen on setting brushfires of freedom in the minds of men."
Well, you wanted change, here you go, the the totalitarian kind. I find this kind of intervention absolutely abhorrent given that it was government meddling in the first place that got us into this mess.
We now have a government, OUR government, dictating to supposedly private sector businesses what they can and cannot pay their executives. Something that the main stream media failed to present about those AIG bonuses is that many of them were incorporated in retainer contracts. These contract bonuses (which the government allowed by the way in the first bailout bill) helps a company to retain their highest performing talent. Most of the executives that aided in this mess are long gone and these bonuses were for the people trying to stop the hemorrhaging. What a welcome message to them, courtesy of the US Government.
You just wait, right now the government's wrath is on Wall Street. What happens when they decide that the way your company is running things isn't in the "best interest" of the country. Fear-mongering...maybe, but mark this date and this week as another potential turning point.
This country is of, by, and for the people. The government works for us, not the other way around. Stand up people and say enough is enough. What makes you think that their ideas are any better than yours? These politicians are only there because they won an election, not because they are subject matter experts. Start making noise. As Samuel Adams once said:
"It does not take a majority to prevail, but rather an irate, tireless minority, keen on setting brushfires of freedom in the minds of men."
Thursday, March 19, 2009
Dodd Blames Obama Administration for Bonus Amendment
http://www.bloomberg.com/apps/news?pid=washingtonstory&sid=aT_tMXRy2vDs
So let me see if I understand this correctly...
1. Obama wants a bailout bill
2. Chris Dodd helps write a bailout bill
3. Obama says he wants exemptions on bonuses for contracts prior to Feb 11
4. Chris Dodd adds an amendment to exempt said bonuses
5. AIG pays bonuses
6. Obama and Dodd are "Oh my God, AIG is so evil!"
7. Dodd admits he wrote the exemptions
8. Dodd blames Obama for the exemptions
9. Obama goes on the Tonight Show!?
Why is everyone so surprised that when you give free money to people they misuse it? If you aren't working hard for it, you will spend it with reckless abandon. This is what happens people when the government tries to solve problems.
So let me see if I understand this correctly...
1. Obama wants a bailout bill
2. Chris Dodd helps write a bailout bill
3. Obama says he wants exemptions on bonuses for contracts prior to Feb 11
4. Chris Dodd adds an amendment to exempt said bonuses
5. AIG pays bonuses
6. Obama and Dodd are "Oh my God, AIG is so evil!"
7. Dodd admits he wrote the exemptions
8. Dodd blames Obama for the exemptions
9. Obama goes on the Tonight Show!?
Why is everyone so surprised that when you give free money to people they misuse it? If you aren't working hard for it, you will spend it with reckless abandon. This is what happens people when the government tries to solve problems.
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