Tag Archives: AIG Bonus Scandal

Mob Rule?

That’s certainly one way of describing it, I suppose. Fox News legal analyst Judge Andrew Napolitano denounces the hastily crafted bill that would impose punishing taxes on large executive bonuses for companies that have accepted taxpayer bailout funds.

Napolitano is right of course — as satisfying as this expedient solution to the problem may be, it’s completely unconstitutional. I facetiously suggested it the other day, not of course thinking that such a vindictive measure would actually be put into force — it’s is a very dangerous precedent.

The New Yorker has a somewhat different take on the matter that’s probably more in tune with popular sentiment these days:

….when it comes to the A.I.G. bonuses, the costs of clawing them back are trivial at best, while the public satisfaction at seeing what feels like justice being served will be great. Getting all worked up about this money may not, strictly speaking, be rational, but I think that paradoxically, if some of this money is clawed back, it’ll increase the chances that we’ll be able to keep dealing with the ongoing crisis in a rational way in the future.

That viewpoint doesn’t however consider the constitutionality of the “altruistic punishment” being exacted in the name of the public towards AIG executives. Neither it seems did the Congress.

Update: By the way, AIG has complied with Cuomo’s subpoena.

Update2:
This seems rather appropriate here…

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Filed under Economy, US Politics

“Are You Kidding Me?”

Another Instantly Classic Shepard Smith Rant

One of the few good things on Fox News…

Meanwhile, CNN is mucking about trying to fathom the “huge mystery” surrounding the clandestine amendment inserted at the last minute by Sen. Chris Dodd (coincidentally, the number one recipient of AIG political contributions) into the stimulus bill legislation that modified it with regards to executive compensation — an artful contrivance that effectively created a loophole allowing the contentious “bonuses” to go forward. And why would that be? Well, the latest explanation seems to be that the unit dealing with credit default swaps was so impenetrably confusing to senior management of the company that it was necessary to retain the unique expertise of the traders involved to decrypt and unravel the very mess they’d created.

Uh-huh. A likely story… Sheesh! Who do these sleazy traders think they are — computer programmers, or something?

Update:
The plot thickens. By various twists and turns, a new (old) spin on the pre-February, 2009 carve-out in the stimulus bill emerges. Well, whatever. As I said yesterday, this whole AIG bonus fiasco is a piffling (albeit highly entertaining) distraction in the scheme of things.

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Filed under Economy, Media