There was no "secret provision" to allow AIG bonuses.

[jefferson_dem]

There was no "secret provision" to allow AIG bonuses
by Jed Lewison
Thu Mar 19, 2009 at 01:22:03 PM PDT

A storyline is emerging in Republican circles and throughout media land that Chris Dodd and the Treasury Department secretly inserted a provision into the stimulus bill that allowed AIG to pay its failure bonuses.

There's only one problem with this narrative: it is completely false.

With or without the stimulus bill, AIG would have been allowed to pay its failure bonuses. In fact, at no point in time was there every a law barring the bonuses.

Given that the bonuses were never illegal, there was never any need to create a new loophole to allow them. They were allowed all along.

What actually happened was that the stimulus bill put new restrictions on bonuses, but only applied those restrictions on bonuses that were given out after the legislation passed.

Early drafts of those new restrictions were retroactive, and would have applied to the AIG failure bonuses, but by the time the final legislation was passed, the retroactive provisions had been eliminated. Chris Dodd, who wrote the restrictions, says he agreed to limit their scope at the request of Treasury.

Figuring out why the new restrictions didn't go far enough is a valuable exercise, but it's also important to get the basic story right, and so far, far too many people are getting the simplest of facts wrong.

Before they go wagging their finger in outrage, they ought to get the story right.

http://www.dailykos.com/storyonly/2009/3/19/710606/-There-was-no-secret-provision-to-allow-AIG-bonuses

[FrenchieCat]

1. Get the story right? How Novel!

[annabanana]

2. And here are the leaked RNC talking points:

THE TALKING POINTS ISSUED BY THE REPUBLICAN CONFERENCE:

All - below are a few basic points on AIG that may be useful. The last bullet is the latest update on Senator Dodd's involvement in the AIG bonus scandal. --Ryan

· $170 billion - total amount AIG received in bailout funds

· Approximately 400 executives and traders at AIG received $165 million in bonuses.

· Average bonus received if $165 million in bonuses split evenly between executives: $412,500

· An amendment to the stimulus sponsored by Senators Snowe and Wyden "would have forced AIG to pay nearly $58 million in taxes on top executive bonuses." The amendment passed the Senate by voice vote, but was stripped from the final stimulus bill by Democrats in a closed door meeting.

Senator Grassley on the stimulus conference committee: "Being named a conferee to the conference committee for the American Recovery and Reinvestment Act meant you were invited to the final, formal meeting late on February 11, where the conference report was announced after it was finalized. This meeting was a photo op that took place hours after Majority Leader Reid announced that the Democrats had reached a deal. Every Republican on the conference committee was left out of the negotiations and consultations entirely. The fact is that the bill the President signed, which protected the AIG bonuses and others, was written behind closed doors by Democratic leaders of the House and Senate. There was no transparency, so the only way the public will ever know who added the language to protect bailout company bonuses is if someone from the small group of Democrats in the room says so."

· After removing the Wyden-Snowe amendment approved in the Senate, Democrats then inserted an amendment similar to one originally proposed by Senator Dodd that provided an "'exception for contractually obligated bonuses agreed on before Feb. 11, 2009' -- a provision that exempts the AIG bonuses Congress is now trying to recoup."

· Democrats did not put the "American Recovery and Reinvestment Act" online for five days of public review and comment as President Obama pledged to do with legislation during his campaign.

· Dodd initially denied having anything to do with the provision that allowed AIG bonuses. He recanted yesterday after Treasury officials told CNN on background that they had been aware of the provision and worked with Dodd to insert the language into the legislation. Dodd would not answer questions as to whether Secretary Geithner knew about the bonus language. President Obama yesterday said that Geithner was "making all the right moves" and that he, the President, was ultimately responsible.. The cover of the Hartford Courant leads today with the headline: "Dodd's Flip-Flop."

http://www.huffingtonpost.com/2009/03/19/dodd-democrats-targeted-f_n_176848.html

[soothsayer]

3. And then there's Geithner admitting that there was

(CNN) — Treasury Secretary Timothy Geithner told CNN Thursday his department asked Sen. Chris Dodd to include a loophole in the stimulus bill that allowed bailed-out insurance giant American International Group to keep its bonuses.

[rufus dog]

4. they have done an outstanding job (with media help)

ignoring the three page Paulson proposal for TARP funds

I am sure that three page document specifically prevented bonuses to any recipient. :sarcasm: :sarcasm: :sarcasm: