|
Do we allow AIG to pay multi-million dollar bonuses to their executives, even after the Government has bailed the company out? I suppose that depends upon whether or not we believe in the rule of law. If so, then a contract is inviolable, and as long as the terms and requirements of the contracts have been fulfilled, then yes absolutely!
I am made extremely uncomfortable by an administration that is eager to set aside or re-negotiate contracts because of a sense of “social fairness”. A contract is a legally binding agreement between two or more individuals or entities, and is the basis and foundation of our Country’s economy, and that of the world. Contracts define the terms of all large financial transactions. Buying and selling products, setting salaries and bonuses, underwriting mortgages and operating the stock market, would all be impossible without a binding agreement or contract. Not liking the terms or financial impact of a contract has never in all of history been a legitimate reason to renege on it. In the future, who will ever enter into a contract if there is a possibility that it may be changed at the whim of the courts or Government? This issue is not about the money. It is about principle, and the guiding rules and procedures that have allowed successful business to thrive in America for over 200 years. As distasteful and unpopular as it is to let these bonuses stand, it must be done.
Now, lets discuss the parts of this AIG mess that the people in charge in DC don’t really want to talk about. First, why is everybody so excited about these bonuses right now? Why is it that virtually everything President Obama brings to the American people is in a panic mode? Why this constant crisis mentality? It appears that Congress knew about these bonus commitments some time ago, and in fact perhaps early enough to stop them. The Associated Press has reported:
For months, the Obama administration and members of Congress have known that insurance giant AIG was getting ready to pay huge bonuses while living off government bailouts. It wasn't until the money was flowing and news was trickling out to the public that official Washington rose up in anger and vowed to yank the money back.
This whole bonus program should have come as no surprise to anyone who was paying attention, however, as I have observed in the past, Obama’s staff seems to be riddled with Attention Deficit Syndrome.
The bonus problem wasn't new, as many lawmakers and administration officials knew only too well. AIG's plans to pay hundreds of millions of dollars were publicized last fall, when Congress started asking questions about expensive junkets the company had sponsored. A November SEC filing by the company details more than $469 million in "retention payments" to keep prized employees.
Not only were key officials aware of the upcoming “outrage”, but perhaps more frustrating is the fact that many were themselves recipients of “political bonuses” from AIG even after the company was in trouble. According to an article on Fox Business.com, a breakdown of the largest contributions to various candidates from AIG looks like this: Chris Dodd $103,100, Barack Obama $101,332, John McCain $59,499 Hillary Clinton $35,965, Mitt Romney $20,850, and Joseph Biden $19,975. Interestingly I don’t hear anyone suggesting, much less demanding that these politicians return any of that money. Additionally under these circumstances, I don’t believe any of them can legitimately or ethically sit in judgment of AIG or it’s business practices.
It is strange how fairness is dependent upon who’s account the money is being taken from. In addition, Dodd the largest recipient of AIG’s generosity, is also the senator who added language to the stimulus bill (the Dodd Amendment ), specifically exempting the very bonuses that he is so vocally challenging right now.
AIG is the poster child for a class struggle being forwarded by this administration. Organization of the masses can more easily occur if the upper financial class can be vilified, and righteously punished. That is what we are really talking about here. Those who have been successful need to be taken down, and this administration is more than happy to arrange the flogging. This cavalier attitude to rule of law is the camel’s nose under the tent. Who is to say the Government won’t someday decide that you make too much, or your mortgage interest rate is far too low? If this Government can do it to the wealthy and powerful, they will do it to you.
|
