Latest on the Bonus Sideshow
The BBC reported last night that the US Treasury Department will hold back the amount of the bonuses from the next round of bailout money to AIG.
Ailing insurer AIG will pay back the hugely controversial bonuses it awarded after taking public bail-out money, the US treasury secretary says.
In a letter to congressmen, Timothy Geithner also said $165m (£116m) would be taken from $30bn the firm is due to get as part of its government bail-out.
While it will hopefully quell foolish suggestions to create highly targeted (and therefore highly illegal) income tax brackets of 100%, this resolution has not derailed today’s AIG hearing before Congress, where relieved outrage has not abated
The remarks did not assuage the anger expressed by both Democrats and Republicans in response to the bonus payments to workers at AIG’s financial products unit. Frank called the payouts “wholly unjustified,” while other lawmakers took aim at the firm’s management
and clever new names for the firm were presented.
“AIG now stands for arrogance, incompetence and greed,” Rep. Paul Hodes, D- N.H., said.
Congressman, you’ve made it awfully tempting to fill in the acronym CONGRESS.
The real outrage, of course, is Congress placing AIG (and other private corporations) in a position to hand out tax dollars to begin with as part of a very expensive and highly quizzical effort to stop or shorten the fiscal slide created in 1995 by Congress itself, along with the Executive Branch. Every indignant word spoken at that hearing today to the hapless Mr. Liddy should be reserved instead by that congressperson for a quiet session with a mirror.
Question for Congressman Frank: in view of the death threats received by AIG management and employees, is it altogether prudent to be requesting the names of those who received bonuses?
And a follow up, sir. Will you also be requesting the names of those employees at Fannie and Freddie due to receive bonuses? [H/T Drudge.]