"US Treasury's Geithner: AIG must pay back bonuses"

[Clio the Leo]

US Treasury's Geithner: AIG must pay back bonuses

WASHINGTON, March 17 (Reuters) - U.S. Treasury Secretary Timothy Geithner on Tuesday said taxpayer bailout recipient AIG would be forced to pay the government to compensate taxpayers for $165 million in employee bonuses as a condition for receiving a further $30 billion in government funds.

"We will impose on AIG a contractual commitment to pay the Treasury from the operations of the company the amount of the retention awards just paid," Geithner said in a letter to congressional leaders.

He also said the Treasury would deduct $165 million from the already planned $30 billion increase in insurer American International Group's (AIG.N: Quote, Profile, Research) federal bailout. (Reporting by Glenn Somerville and Tim Ahmann; Editing by Gary Hill)

http://in.reuters.com/article/governmentFilingsNews/idINN17174320090318

Why am I seeing more outrage in the news over "what did they know and when did they know it?" than I am of the Secretary's plan? WHY did I have to find this on REUTERS INDIA!!!!?

[rufus dog]

1. Good find

Great work on your part

The announcement form Geithner is 24 hours late though.

[OmahaBlueDog]

2. KO quoting AP quoting Rahm: Geitner's job not in jeaopardy over AIG

Is this like in baseball, when they say the manager of the team is safe, right before........

[rufus dog]

3. I think he should be safe

It never should have made it to him to stop. The head of AIG needs to be publicly fired. Geithner needs to wise up though. He fucked his boss over by not being proactive. Before the flames start, his mistake is very minor in the whole scheme of things.

[Igel]

5. The AIG CEO is new.

Been there just a few months, with the bonus mess already there.

He could, of course, decide to turn his salary over to the government. I'm sure that would help a lot.

He's taking $1/year as compensation.

[rufus dog]

8. So are you saying because he is new he gets a pass

I am assuming that bonus packages that big would have passed his desk. And that is the problem, they were passed and not stopped.

[LiberalFighter]

15. I'm not sure that Geithner considers Obama his boss.

[LiberalFighter]

14. I think Fineman said last nite that Geitner may be gone

[The_Casual_Observer]

4. What happened to his god damn "nation of laws" bullshit??

Somebody light a fire under his stupid ass?

[MannyGoldstein]

6. So AIG Will Simply "Borrow" An Extra $165 Million

How goddamned dumb does that Republican Geithner think we are?

Just blows my mind.

[Kurt_and_Hunter]

7. Hmmm... we are pretty much repaying ourselves

We own 80% of AIG.

We are getting tough with them by making us pay us money that is already mostly our money to begin with.

And if they had any money we wouldn't have to own them in the first place.

But I'm sure it's a great victory for somebody or another.

[adamuu]

9. it's nonsense.

The bailouts to AIG are based on need, not on merit. So punitive damages are unlikely to make it behave better. We give them more money every time they ask. If we knock down the amount today, they know they can ask for, and get, more later. It makes no difference.

I haven't heard the word "prison" nearly enough.

[Life Long Dem]

10. If not prison something needs to be done.

I think someone needs to take a two by four to the crooks head. I can understand the Government looking at the long run with lawsuits, but it does seem we have taken this route before.

[BuyingThyme]

11. Umm... He's saying the CEOs get to keep the cash, right?

Or am I just stoooooopid?

[14thColony]

13. It sure sounds that way

since the refund comes out of the company's 'operations,' which I assume doesn't mean 'someone's personal bank account.'

Is it just me or did we just fall for a shell game designed to make sure the execs get to keep their bonuses?

[Clio the Leo]

16. So then what's your alternative solution?

The ONLY other way the government can get the money back legally is to tax AIG. Last I checked, the executive branch doesn't have the sole power to raise taxes on anyone.

What, then, do you propose they do? Send a message that says, "Barack Obama is mad at you! Now! Send all the money back right now! Hop on over to Western Union post haste!"

[Phx_Dem]

18. What's he going to do, break into their personal bank attacks and take it back?

[Phx_Dem]

19. What's he going to do, break into their personal bank attacks and take it back?

[democracy1st]

12. this guy needs to be fired asap,he was never trusted from the start

[Phx_Dem]

17. Because the MSM is too busy handing out pitchforks and leading

the angry mob. They don't want to take the time to report breaking news because it might result in a less angry mob. Then who would they lead?

I get angry at stuff like AIG bonuses . . until the media chimes in and jumps to the head of the pack so they can fuel the anger and lead the mob. When that happens, my anger dissipates and turns into disgust for the media. Ditto for the boobs in Congress who were responsible for this; they're the damn lawmakets for Christ's sake!

It's one thing to report on the public anger. It's another thing altogether to fuel it.