[FoRK] Scary

Damien Morton dmorton at bitfurnace.com
Tue Mar 17 13:39:51 PDT 2009


I read a great suggestion: indemnify AIG against any lawsuits resulting from
non-payment of bonuses. We can do it for telcos, why not insurance
companies.

On Wed, Mar 18, 2009 at 7:34 AM, Adam L Beberg <beberg at mithral.com> wrote:

> No, the solution is bankruptcy. THIS is why the companies refuse to do
> that, because they would go un-bonused.
>
>
> Stephen Williams wrote on 3/17/2009 11:26 AM:
>
>  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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>
> --
> Adam L. Beberg
> http://www.mithral.com/~beberg/
>
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