Obomo Upset with AIG

I was listening to the testimony by AIG's CEO Liddy this afternoon. Apparently the retention bonuses were directly tied to each person working out his or her portfolio of problem derivatives satisfactorily to help shut the unit down, at which point their jobs would be finished. The 11 that resigned had completed their assignments. Apparently the resignations were considered to be mutually desirable. For what it's worth, Liddy is working for a "salary" of $1.00 with no bonus in the form of either cash or stock in an effort to unwind the AIG fiasco. Whether correct in his assessment or not, he currently believes that AIG will be able to repay all loans received from the government and that the government will actually make a profit on the assets that it purchased. If this substantially comes to pass I would categorize the AIG bailout as an even bigger success than the original bailout of Chrysler. Only time will tell.

EDIT: BTW, I know it's all Obama's fault if AIG fails. Who's fault is it if the bailout succeeds?

I f the bailouts work and it can be actually attributed to them then I will give him credit. The thing that bothers me is that he is flock shooting and not aiming. There is a chance that he may hit something but that doe not make him a great shot.

The senate passed a bill that would have either made it harder or impossible for AIG to pay those bonuses. When it went to committee the provision was taken out and a new one was added. The new provision guaranteed the bonuses. Obama, his staff, and every politician that voted for this should be responsible.

Instead of asking AIG employees who recieved payments as a part of their contract, we should make the politicians who supported this pay back $330 million, 2x what was paid in bonuses.

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Originally Posted by YardleyLabs

BTW, I know it's all Obama's fault if AIG fails. Who's fault is it if the bailout succeeds?

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You will not have to worry about BO receiving full credit for anything positive, if it happens, the mainstream media will ensure that happens. What I want to see is more critical reporting of his & his shady henchpeople's roles in causing this too happen. The greed had been evident when Greenberg was led away in cuffs, why wasn't something done then? I forgot, that was on another watch, the Chris, Barney, Charlie trio were not complicit in causing this to happen.

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Originally Posted by YardleyLabs

EDIT: BTW, I know it's all Obama's fault if AIG fails. Who's fault is it if the bailout succeeds?

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Jeff, I'm going to assume that your use of the term "fault" with regard to if the bailout succeeds was purely Freudian.....;-)


kg

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Originally Posted by K G

Jeff, I'm going to assume that your use of the term "fault" with regard to if the bailout succeeds was purely Freudian.....;-)


kg

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I hope the bailout succeeds for all of our benefits. However, whether it will or not remains uncertain. Hopefully in the not very distant future the profitable components of AIG's business can be packaged and sold in pieces in the private market while the poisonous parts are unwound in a manner that does not sink the economy any further.