The Truth in AIG Bonus Scandal
I was up late last night and was watching the Glenn Beck show (I like his show more every day). His delivery is a little different – and some might say in your face – but the content is great. Plus, I’m in love with his sarcasm. [NOTE: I actually wrote this yesterday morning, so the show was actually on Wednesday night.]
Last night he had Dr. Drew Pinsky as a guest. Dr. Drew is pretty well known (recently has the celebrity rehab shown on VH-1.
Glen and Dr. Drew were discussing the emotional reaction to the AIG bonus scandal (see a clip here). Glen brought up the fact that United States SENATORS were making ridiculous statements such as suggesting AIG employees who received bonuses should commit suicide (Sen. Grassley – sadly a Republican from Iowa), and the apathetic reactions (like just shrugging your shoulders and continuing with nonsense) from the likes of Sen. Barney Frank when Liddy (current CEO of AIG) advised that AIG employees had received death threats (some as horribly descriptive as using telephone wire and involving their families and children) and that releasing their names publicly could bring serious harm to innocent families – yes, Sen. Frank just continued with his gibberish.
The general nature of the discussion, and it’s worth watching the whole clip, was that these overreactions by United States Senators, people who are supposed to be the leaders and are the lawmakers, were narcissistic and borderline crazy. Beck suggested that it was a mob mentality on behalf of these politicians – trying to overrule the law (by finding ways to void a legal contract) and letting their emotions rule instead of the law (emotions that are fake and hypocritical anyway - see yesterday’s post for more on that) .
Dr. Drew compared what is going on now to pre-French Revolution times, where those at the top thought they were “above the law.” It made sense since there are actually US Senators thinking that in “solving” these problems they can overstep laws, retroactively implement laws, and tax 100% of the money that an individual made privately in a legally binding contract, which is completely ridiculous.
Based on last night’s show, I did a little more research because the media is spinning this story every which way, except in the way of truth. First, I want to make clear some things I learned, that I did not get from reading any MSM notes.
* Of note, Ed Liddy, the current CEO of AIG, came out of retirement (called upon as a public service) to help out with the AIG mess. He did not create the mess and for some people to call for jail time of Liddy is stupid and defies any common sense (even Sen. Frank had to openly admit that).
* The so-called “performance” bonuses everyone is all in a “rage” over, are actually retention bonuses. What’s the difference you ask? Well, Liddy explained it very well. AIG needs to get back on its feet in order to pay back the money they took from the Federal government. AIG will never get back on its feet if the people working there now just quit and leave behind a mess, without winding down the sections of the company that created the problem. In order to keep these people working there, they paid them money to stay and do a good job in winding these areas of the company down. Once they were done with the winding down aspect, they were allowed to leave. Ignoramus, Sen. Barney Frank, doesn’t get that. He keeps saying that he wants the names of the people that took money from AIG and then just quit. HELLOOO!!! That was the point of retention payments - pay these people to finish the job (even if it was “distasteful” to give them any money as Liddy stated), which is necessary to keep AIG afloat, and then get rid of them.
Nobody likes the bailouts- nobody wants to hear about people getting million dollar bonuses, but what is making this situation worse is the lack of truthful explanation from the government, especially the Treasury and the President, and the media’s refusal yet again to be unbiased and to seek the full story.
Politicians are so intent on holding on to their power, making money, and still looking like the heros in front of the American people, that they are crumbling. You cannot have it all. You cannot always have your way. And most importantly, the truth always, always, always comes to light – even if it’s not at the moment.
Michelle Malkin has a good take on it (btw she looked great on the Glenn Beck show and is very well spoken – I can say that even though I disagree with her delivery of message on certain issues).
Update: Friday’s CG here’s a good read from Michael Goodwyn at the NY Daily News.
