AIG comes clean and helps the worlds economies

Discussion in 'Politics, Religion, Social Issues' started by Peace, Mar 15, 2009.

  1. Peace macrumors Core

    Peace

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    #1
    http://www.bloomberg.com/apps/news?pid=20601087&sid=aK0IMlK2ThPo&refer=home


    Bloomberg News :

    " American International Group Inc., the insurer saved from collapse by a U.S. taxpayer bailout, said Societe Generale of France and Deutsche Bank AG of Germany led a group of 20 foreign and U.S. banks that received billions of dollars in collateral payments after the rescue.

    Goldman Sachs Group Inc., Merrill Lynch & Co. and France’s Calyon, were also among recipients of $22.4 billion, AIG said as it released the list for the first time today. AIG had previously said collateral recipients couldn’t be named because of confidentiality requirements."
     
  2. freeny macrumors 68020

    freeny

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    #2
    Didnt they just accept 170 billion in bailout money, then turn around and handout 165 billion in bonuses?
     
  3. FX120 macrumors 65816

    FX120

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    #3
    165 million, not billion.
     
  4. kastenbrust macrumors 68030

    kastenbrust

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  5. blackfox macrumors 65816

    blackfox

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    #5
    Iirc, the bonuses paid out by AIG were contractually obligated, and agreed to prior to AIGs initial collapse.

    Talking to my parents on the phone the other day, my dad mentioned that AIG holds the Congressional Pension Fund - with the implication that this might be a reason that the Government wa so quick to assist AIG in the face of it's potential dissolution - Is there any truth to this claim?
     
  6. luminosity macrumors 65816

    luminosity

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    #6
    Without government intervention, there would be no bonuses, since the company would no longer exist.
     
  7. freeny macrumors 68020

    freeny

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    +1
    AIG is using the money to continue "business as usual". The same practices that helped get them into this mess in the first place.

    Another example that shows these companies cannot be trusted. Somebody needs to be overlooking this spending as well as penalies for misuse.

    Im not buying the "contractual" crap.
     
  8. Eraserhead macrumors G4

    Eraserhead

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    #8
    But if it does exist, then to not pay those bonuses would mean weakening employment law which is bad for everyone.
     
  9. Eraserhead macrumors G4

    Eraserhead

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    #9
    You might have a contract when if you make a certain profit for the company you get a bonus, you often get them if you work in sales for example.
     
  10. freeny macrumors 68020

    freeny

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    #10
    Bonuses are for those who are successful.
    If not, then it should just be called a salary.
    Giving a bonus implies a reward. The company failed. there is no reason for a reward.
    They are rewarding failure and bad business, therefor perpetuating it.

    Yes, I stand corrected.
     
  11. Eraserhead macrumors G4

    Eraserhead

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    #11
    Lets say the company said the following:

    You'll get a bonus of $10 000 if you make the company $1 000 000. If you do that then you expect to get that bonus - even if your colleagues all failed to achieve that target.
     
  12. freeny macrumors 68020

    freeny

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    #12
    Then you give up the bonus OR go down with the ship....
    So is life
     
  13. leekohler macrumors G5

    leekohler

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    #14
  14. freeny macrumors 68020

    freeny

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    #15
    I really hope the government sues AIG...
     
  15. leekohler macrumors G5

    leekohler

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    #16
    Me too! This crap has to stop.
     
  16. Eraserhead macrumors G4

    Eraserhead

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    #17
    I'm still not convinced he is right. Do you really think its worth taking money off the insurance workers at the price of weakening employment law which will affect everyone is worthwhile?
    source

    Obviously if the bonuses are above and beyond what is contractually agreed then they should be stopped, but otherwise they should be given.
     
  17. rdowns macrumors Penryn

    rdowns

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    #18

    Considering the govt. 'owns' more than half of AIG, I doubt you'll see any lawsuits.
     
  18. freeny macrumors 68020

    freeny

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    #19
    Perhaps they will own all of it....
     
  19. leekohler macrumors G5

    leekohler

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    #20
    Bulls***. We bailed these people out. They're the very ones who screwed up in the first place. And we cannot let them do this. It's wrong- plain and simple. Especially when there are those of us doing good jobs and getting good annual reviews, then get our salaries cut by 5% anyway.

    Sorry- no bonuses for these fools.
     
  20. Blue Velvet Moderator emeritus

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    #21
    I'd like to hear what our conservative forum members think of this. Are they prepared to ask of their representatives why failure is being rewarded with taxpayer's money? Or do they agree with key members of the Republican Party? ;)


     
  21. leekohler macrumors G5

    leekohler

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    #22
    Kyl is full of it. If we're paying to keep these people in business, we certainly have a right to say how the money is spent.

    And conservatives will just cry "socialism!" like they do for everything else.
     
  22. Blue Velvet Moderator emeritus

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    #24
    Actually, there's a more serious point that hasn't been getting enough coverage. There is growing concern that some of AIG's activities may have been criminal. Let's just remind everybody here that this goes right to the very heart of political beliefs: do you regulate the market?

    The right wing would like everyone to believe that this global financial crisis was bought about by poor people and ACORN. :rolleyes:



    So the 'best and brightest' are responsible for this mess? Sack 'em.
     
  23. és: macrumors 6502a

    és:

    #25
    The word 'Socialism' has transformed into just meaning 'we're scared of/dislike/hate/religiously prohibited'. It is becoming pretty boring, isn't it
     

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