Larry Summers claims that nothing can be done about the AIG bonuses.

[masuki bance]

Larry Summers claims that nothing can be done about the AIG bonuses. As a former Secretary of the Treasury, he should know better....

Ordinarily, we discourage the Secretary of the Treasury (and the Economic Czar) from interfering with the day-to-day functions of the Internal Revenue Service, and the IRS has historically been loathe to examine the compensation packages given to employees of publicly traded corporations. However, these are abnormal times, and the AIG bonuses present extraordinary circumstances. AIG can respond to an IRS challenge in open court. Moreover, an IRS challenge to the reasonability of the AIG bonuses would send a strong message that such executive compensation shenanigans will not be tolerated.

Larry Summers says that the United States government is powerless to stop the unreasonable AIG executive compensation. He should know better. Mr. Summers: Yes you can.

http://www.huffingtonpost.com/aaron-zelinsky/larry-summers-stop-the-ai_b_175151.html

Get with the program Summers. Now.

[valerief]

1. WWCD? (What Would China Do?) nt

[BrklynLiberal]

3. heh heh

http://www.iht.com/articles/2009/01/09/business/risk.php

Relatively lax corporate oversight in China is a concern in Asia, analysts say, and the country has had its share of scandals. But the harsh penalties for executives convicted of abuses - including execution - make China less vulnerable than its corporate governance ratings might suggest.

[BrklynLiberal]

2. There should be a class action suit brought by a taxpayers' group to restrain

these corporate thieves from using our tax money to enhance the lives of these despicable characters.

As I heard on the radio this AM..some waitress, being paid $12 an hour is being taxed so these fatass millionaires can continue to live in the style to which they have become accustomed???

THERE IS NO WAY THIS SHOULD BE HAPPENING!!!!!!!!

[masuki bance]

22. That waitress example is why this is so outrageous.

[BeyondGeography]

4. One has to be suspicious of Summers' instincts

He is, after all, the guy who said, "Never in the history of man has anyone washed a rented car," to justify pushing home ownership, and the ownership society in general. As if people don't take care of their rented apartments...

[AZ Criminal JD]

12. Most people don't take care of their apartments

Anyone who either cleans apartments or rents them will tell you that.

[BeyondGeography]

23. You're talking to the wrong guy on that one

In fact, you're talking to wrong part of the world on that one. New York is filled with renters who treat their apartments as well as any suburbanite. Probably better, in fact.

[AZ Criminal JD]

24. Well we are going from our own anecdotal evidence

And we have different experiences.

[Phx_Dem]

5. Erin Burnett said the same thing this morning -- she reported that

AIG had spent the last few weeks talking to lawyers to see if they could get out of paying those bonuses. AIG was contractually obligated to pay obscene bonuses to a bunch of London derivative traders -- which makes it all the more appalling. The lawyers along with the UK legal system said it would cost AIG at least twice as much to break the contract.

It's absolutely nauseating, but Larry Summers appears to be correct. SOmeone else confirmed what he and Erin said earlier, but I can't remember who it was. Also, Chuck Todd(?) reported that the monies given to AIG was not taxpayer money -- the Treasury printed money for specially for them. Of course, that's just splitting hairs -- the point is those asshole derivative traders from LONDON shouldn't get a rotten dime of U.S. money and a company that needed billions in bailoutfunds, shouldn't be paying bonuses to anyone!

Obama said he has instructed Geithner to see if he can find a way out of the bonus contract. I don't think it will happen but I guess it makes people feel better to hear they're looking into it.

[LiberalFighter]

10. What are the names of these damn derivative traders and others receiving bonues?

I say let's make their lives miserable.

[Phx_Dem]

14. Yeah, they should be posted publicly since they got public funds.

But I'm not sure people in Britian would give a shit that their reckless derivative traders got huge bonuses with U.S. money.

[LiberalFighter]

11. I bet Chuck Todd got some of that money.

[OHdem10]

6. They have been twisting themselves into a pretzel trying to explain

away, the Money AIG received , was from the Fed.

Yes the Fed Prints money. Does it not print the money knowing
or believing that if something terrible happens the Government
will back it up. They print the money knowing that Taxpayer
money is the guarantor.

The only contracts that cannot be broken and are more powerful
than the President and Congress are BUSINESS CONTRACTS.
What if AIG had not received help from the Government?? Had Collapsed??
Who would have paid those bonuses. NO ONE.

How can we the taxpayers own 80T of AIG and Taxpayer money was not
used.

Shoot it straight, please.

[Metta]

7. Making his Wall St. buddies feel good. Happy karma, Larry.

Hot air in a suit. Thinks he's impervious.

[masuki bance]

8. Larry just seems completely tone deaf.

[Metta]

21. Yes, he and his people are covering for their friends while the rest of us get beat.

He's like a kinder, gentler Bushie. Trying to have us believe that he's on our side while not helping us much at all.

[ProSense]

9. It doesn't matter what Summers claims,

and this is a piece about his TV appearance yesterday morning. Obama addressed the issue today.

[AZ Criminal JD]

13. Of course it matters what he said

Obama can say anything for public consumption. Contracts can't be broken by government. That is the rule of law whether you like it or not.

[ProSense]

15. "Contracts can't be broken by government. " Who said their claim is

true

Bonuses are rewards and should be tied to performance. AIG posted record losses 2006, 2007 and 2008.

Whether you like it or not, AIG is up shit creek, and someone in that organization needs to go to jail.

[AZ Criminal JD]

20. The government, including Obama, should not have gave them bail out money

If they didn't approve of their contracts. They knew about it in advance. They weren't hidden.

[ChiciB1]

16. Just Posted At Two Other Threads About This! They Must Take Cuts....

no matter what was promised when or where AND this administration MUST stop them! The really really scary thing is how the house of cards will fall if AIG fails!!

Not the fault of "we the ORDINARY people" but AIG is all about the S&P 500 from what I understand! The staple of stocks for so many many years! As I asked somewhere else, if I'm wrong, please let me know where.

I have most of my money with S&P and it's not a lot, but I really and SCARED!!!

:scared: :scared: :scared:

[Gin]

17. Hmmmm......maybe Larry is one of the recipients!!!

same with Tim!

[bertman]

18. Ohhh yessss, they can be stopped. Here's how. Thanks to HuffPo

http://www.huffingtonpost.com/william-black-tom-ferguson-rob-johnson-walker-todd/how-to-stop-aigs-bonuses_b_175351.html


After reading this it is even clearer that Summers and Geithner are worthless Wall Street shills who can't think two steps ahead, much less checkmate these financial thief bastards.

[DeschutesRiver]

19. Latest - WSJ is reporting that Treasury will not give AIG their 30billion infusion

until every bonus is repaid. Wouldn't that be sweet? Obama sounded determined to get those bonuses blocked when he spoke this a.m., but frankly, I wondered if he would be willing to draw the necessary line in the sand - tentatively optimistic that he may have now done so.

Link is for the tickerforum, but it was a developing story from the WSJ and there is no WSJ direct link yet. But I am keeping an eye on this. If this pans out, then so much for Larry Summer's big mouth spouting everything to the contrary.

http://www.tickerforum.org/cgi-ticker/akcs-www?post=87416