I think people think there should've been an exception, given that their cash came from the bailout.

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I think people think there should've been an exception, given that their cash came from the bailout.

Author: jakers (9611 Posts - Original UHND Member)

Posted at 11:51 am on Mar 18, 2009

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Had we simply allowed them to go bankrupt, it would've nullified the bonus contracts (along with all other wage contracts), and they wouldn't have had to pay it.

However, the government gave them bailout cash, so there wasn't really any legal way to avoid paying their contractual wages.

Replies to: "I think people think there should've been an exception, given that their cash came from the bailout."

Admittedly, I have not paid much attention to this AIG stuff, however... - LanceHarbor - 11:28am 3/18/09 (43) [View All]
- If they are contractually obligated, why is it called a bonus? - Lady_Irish_27 - 1:03pm 3/18/09
  - If someone has already answers this, I apologize. - Trucker2 - 2:49pm 3/18/09
    - Yeah, cause the IRS taxes "bonuses" less than "lump sum payments". Thanks. - NDFaninNJ - 2:54pm 3/18/09
      - I knew just you'd appreciate my imput! ;^) [NT] - Trucker2 - 3:02pm 3/18/09
        Almost as much as I'd appreciate your "input" [NT] - NDFaninNJ - 3:33pm 3/18/09
        Yup. - Trucker2 - 4:50pm 3/18/09
  - They were necessary to unwind the instruments that got them into the mess. - LanceHarbor - 1:51pm 3/18/09
  - Because that has become the terminology for any one-time lump sum payment. - NDFaninNJ - 1:32pm 3/18/09
    - I'm sorry, I don't think anyone is irreplaceable. Including entire corporations. - Lady_Irish_27 - 1:55pm 3/18/09
      - Don't misinterpret what I'm saying. AIG should have been allowed to fail. - NDFaninNJ - 2:04pm 3/18/09
      - That's all well and good we don't live in a utopia. - LanceHarbor - 2:00pm 3/18/09
        The provision that allowed for these payouts was very specific in the bill. - Lady_Irish_27 - 2:14pm 3/18/09
        They were payable anyway. They were agreed to in 2007. [NT] - NDFaninNJ - 2:16pm 3/18/09
        No, they weren't. The agreement was made in 2008 that folks would get as much as those in 2007. - Lady_Irish_27 - 2:34pm 3/18/09
        This populist bullshit is a spectacle created to distract people from the real problems. - NDFaninNJ - 2:41pm 3/18/09
        I think it highlights the real problem. - Lady_Irish_27 - 2:59pm 3/18/09
        
        Exactly [NT] - LanceHarbor - 2:22pm 3/18/09
- I'm not a BHO fan but I don't think this one is his fault... - Frank L - 12:56pm 3/18/09
- I think people think there should've been an exception, given that their cash came from the bailout. - jakers - 11:51am 3/18/09
  - Agreed. We gave them bailout money specifically for obligations like these. [NT] - LanceHarbor - 12:23pm 3/18/09
- Agree. - jabbadoody5 - 11:50am 3/18/09
  - That's the real issue - stop succumbing to fear of what might happen and let these losers fail. [NT] - LanceManion - 12:02pm 3/18/09
- Because they can - Hank Scorpio - 11:44am 3/18/09
- Based on article below - looks contractual + Feds knew about them last year. Retention bonuses - hah [NT] - LanceManion - 11:31am 3/18/09
- Agree. I can't wait to see if Barry and co. attempt to tax their bonuses 95%.... - Domer From Hell - 11:30am 3/18/09
  - This is hardly a partisan fight. - LanceHarbor - 11:33am 3/18/09
    - It's absolutely a partisan fight.... - Domer From Hell - 12:20pm 3/18/09
    - delete [NT] - Domer From Hell - 12:20pm 3/18/09
  - Equal protection suit waiting to happen, as well as ex postfacto legislation (money earned in 08 - LanceManion - 11:32am 3/18/09
    - Lance, you should know that's not a standard. - NDFaninNJ - 11:46am 3/18/09
      - Why is that bull shit? - SouthPhillyDirtbag - 11:53am 3/18/09
        Because, if the government wanted to avoid this, they should have done some due diligence... - NDFaninNJ - 12:11pm 3/18/09
        If the government can legally get this money (ie rewrite 2008 tax law), they should do it - SouthPhillyDirtbag - 12:41pm 3/18/09
        It doesn't sound like the government effed up. They specifically provided for these bonuses. - Lady_Irish_27 - 1:19pm 3/18/09
        There should be something stating that after date X, not another bailout penny will be handed out - LanceManion - 1:30pm 3/18/09
        I thought you were against a timeline for withdrawl - SouthPhillyDirtbag - 1:48pm 3/18/09
        I actually thought the same thing. Funny. [NT] - NDFaninNJ - 2:04pm 3/18/09
        
        Oh sure. But these are the people in charge - and we the people put them there. - Lady_Irish_27 - 1:37pm 3/18/09
        I the people didn't vote in this turd, and really if someone had said the blank check would continue - LanceManion - 2:04pm 3/18/09
        
        What would you need to hear to be convinced that the AIG bailout is worth it? - SouthPhillyDirtbag - 1:47pm 3/18/09
        That's not my point here. [LINK] - Lady_Irish_27 - 2:08pm 3/18/09
        
        Me. This is how AIG compensates its employees. That's why we gave them money. To pay bills. [NT] - NDFaninNJ - 12:58pm 3/18/09
      - Well, those guys have about 80 mil to figure out how to successfully defend the tax, if imposed [NT] - LanceManion - 11:49am 3/18/09