[FoRK] Scary

Stephen Williams sdw at lig.net
Tue Mar 17 11:26:23 PDT 2009


The problem to begin with is that the government should have negotiated 
a number of requirements with the companies to prevent this kind of 
debacle.  While Congress or the Treasury Secretary or the Fed or 
whatever might not be able to invalidate a contract, they can certainly 
say: "Secure agreements voiding any provision like 'x', or you don't get 
the money and you fold now."  Duh.  Sure you trust companies to do the 
right thing to some extent, but not when you're forking out billions.  Wow.

At this point, there are various solutions, but the damage is already done.

sdw

Jeff Bone wrote:
>
> Now, I am in *no way* defending the abysmal decision by AIG regarding 
> bonuses *or* the even-worse PR around it;  however, please consider 
> what the following statements *actually mean* with respect to the 
> power our elected officials (and their appointed bureaucrats) 
> apparently believe they have over individuals and their lives and 
> livelihoods.
>
>
> -- #1 --
>
>
>   http://www.reuters.com/article/ousiv/idUSTRE52G3BQ20090317
>
>
> "Senator Charles Grassley, the top Republican on the Senate Finance 
> Committee, made the comments Monday in an interview with a radio 
> station in his home state of Iowa...  The first thing that would make 
> me feel a little bit better toward them (is) if they'd follow the 
> Japanese example and come before the American people and take that 
> deep bow and say, I'm sorry, and then either do one of two things: 
> resign or go commit suicide," Grassley said... And in the case of the 
> Japanese," he added, "they usually commit suicide before they make any 
> apology."
>
>
>
> -- #2 --
>
>
>
> "Let the recipients of these large and unseemly bonuses be warned – if 
> you don’t return it on your own, we’ll do it for you," Senator Chuck 
> Schumer said in a speech on the Senate Floor.
>
> But how?  As a Congress struggles translate outrage over the bonuses 
> into action, a new idea has emerged:  tax 'em.
>
> The idea, first floated by Senate Banking Chairman Chris Dodd (D-CT), 
> is to impose a massive confiscatory tax narrowly targeted the $165 
> million dollars in bonuses recently doled out by AIG.  Call it the AIG 
> Bonus Tax.
>
> Senate Finance Chairman Max Baucus (D-MT) is working to put the idea 
> into law.  At a hearing today, he asked IRS Commissioner Douglas 
> Shulman, "What's the highest excise tax we can impose that will stand 
> up in court?" Shulman said he'd have to get back to Baucus on that, 
> but promised to work with the Senate a drafting the new AIG bonus tax.
>
> Senator Schumer, Senate Majority Leader Harry Reid and six other 
> Democratic Senators have written a letter to AIG Chairman Edward Liddy 
> demanding the bonuses be rescinded.  If he doesn't rescind them, the 
> letter warns, the bonuses will be taxed away.
>
>
>
> -- 
>
>
>
> I will leave contemplations of the problems posed by these statements 
> to the reader.
>
>
>
>
>
> jb
>



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