Obama Seeks Legal Authority To Rein In Future Bonuses

[babylonsister]

Obama Seeks Legal Authority to Stop Future Bonuses

By JONATHAN WEISMAN


WASHINGTON -- President Barack Obama said he will seek legal authority over the financial system that will give the federal government power to step into contract issues, such as the one that has allowed American International Group Inc. to pay out $165 million in retention bonuses to employees of the tottering insurance giant's financial products group.

The president said he spoke with House Financial Services Committee Chairman Barney Frank this morning about granting him "resolution authority" similar to the power the Federal Deposit Insurance Corp. has over the thrifts it regulates. That would allow his administration to potentially abrogate contracts that it can show does not serve the good of newly regulated entities like AIG.


{President Obama (right) makes remarks about AIG outside the White House as Council of Economic Advisors Director Christina Romer (left) and Treasury Secretary Timothy Geithner look on.} Reuters


Mr. Obama said he needs the regulatory power "to allow us proactively to get out in front, to separate bad assets from good in dealing with contracts that may be inappropriate."

Mr. Obama spoke with reporters outside the White House as he headed toward his helicopter en route to Andrews Air Force Base for a trip to California. He acknowledged that the furor around the AIG bonuses had consumed Washington, "and rightfully so because they represent what we all of consider an inappropriate use of taxpayer funds."

more...

http://online.wsj.com/article/SB123739640101373211.html

[KittyWampus]

1. How about you get some freaking criminal investigations going. Otherwise, you're just enabling this

to continue.

[LakeSamish706]

2. I kinda think that I like what a few of the Congress Critters had to say about this today...

in the hearing with Mr. Liddy.... For bonus's that have not been paid yet, don't pay them, let the recipients sue for the money.

[babylonsister]

4. I kind of liked the fact that he's 'seeking' vs. threatening. There's change. nt

[Xipe Totec]

3. Imminent domain - the power is already there

Take over home mortgages, by imminent domain.

Compensate the mortgage holders at the fair market value of the properties (TODAY's FAIR MARKET VALUE).

And renegotiate the mortgages with the homeowners (AT TODAY'S FAIR MARKET VALUE).

[PBS Poll-435]

7. It's Eminent Domain

And the owner of the properties in mortgage are the citizens. The banks have a lien on the deed.

[Xipe Totec]

10. Yes, thank you...

And the real question is who needs to be compensated for what and and at what price.

A lien is also property, just like a share of stock is property. Ownership can be transfered.

[HopeOverFear]

5. There was breaking news on MSNBC yesterday

that Geithner was in contact with Atty. Gen. Holder about AIG. But there was no followup news. Anybody know what happened with that?

[FrenchieCat]

6. I'm sure whatever it was, was outrageous,

and should keep us frenzied up some more....

[HopeOverFear]

8. Perhaps that could be a good thing, though?

I mean Geithner being in touch with Holder, not the frenzy thing lol Perhaps getting Justice involved with finally make AIG start shaking in their boots, therefore providing a victory for Obama in this fight. If you want to call it a fight, I don't know lol
I know nothing about economics, so I can't call it lol

[PBS Poll-435]

9. So nice of you to join us

Welcome to DU!

:hi: