Category Archives: AIG

AIG BONUSES "ARE AN INSULT TO FAMILIES TRYING TO SURVIVE THE ECONOMIC CRISIS,"

U.S. Senator Robert Menendez (D-NJ), a member of the Banking Committee released the following statement on bonuses paid out by AIG, the insurance giant that also has benefited from a government rescue plan:

“These bonuses are an insult to families who are trying to survive the economic crisis by saving every penny and changing their way of life. They have every right to be furious that AIG is taking their tax dollars while carrying on with what can only be described as business as usual – particularly when business as usual helped put us in this mess.

“President Obama is right to have his administration search every legal means available to try to block these bonuses, and I will help push similar efforts in the Senate. The question must be asked: If unions can be expected to renegotiate contracts to help save companies or industries, then why can’t companies do the same with their executives during this crisis?

“We have to make sure that Wall Street is using taxpayer money in a responsible manner. Perhaps equally as important, we have to make sure that some on Wall Street don’t further erode the confidence of the American people by failing to recognize the need for shared sacrifice. There is a fundamental and troubling disconnect between the realities that families across this country are living through and how some on Wall Street are acting like there is no crisis.”

Senator Menendez also appeared yesterday afternoon on the MSNBC program “1600 Pennsylvania Avenue” with host David Shuster to discuss his feelings on the AIG bonuses.

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Filed under 1600 Pennsylvania Ave, AIG, corporate bonuses, David Shuster, MSNBC, President Obama, Senate banking committee, Senator Bob Menendez, TARP, Treasury Secretary Tim Geithner

Beyond the Fat Cats

NY Times Op-Ed Columnist Bob Herbert  rants on that about how the Democrats and President- Elect Obama needs to look beyond the Wall Street fat cats and bring back a sense of fairness and equity to the economy. Its a good column and worth a look.

“The most important thing the Democrats and President-elect Obama can do with regard to the economy is bring back a sense of fairness and equity.

The fat cats who placed the entire economy at risk with their greed and manic irresponsibility are trying to lay claim to every last dime in the national Treasury. Meanwhile, we’re nowhere close to an economic recovery program that will help the people who are hurting most.

Back in September, with the credit markets frozen and the stock markets panicking, the treasury secretary, Henry Paulson, was telling anyone who would listen that his $700 billion bailout package had to be passed with lightning speed — no time to look at it too closely, no time for dissent.

The package was modified, but hurriedly. Now we learn that while all eyes were focused on this enormous new burden for American taxpayers, Mr. Paulson’s department was also engineering — separate and apart from the bailout — what The Washington Post described as “a quiet windfall for U.S. banks. ”

With virtually no public attention, and without the input of Congress, Treasury made a change in an obscure tax provision that benefited banks to the tune of well over $100 billion. Was this good policy? In the absence of proper scrutiny, how is it possible to know?

We’ve also learned that the government bailout of the giant insurer, the American International Group — already more than $100 billion — is apparently insufficient. Tens of billions more are needed….”


Click HERE to finish reading Bob Herberts column from the NY Times

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Filed under AIG, bailout, Barack Obama, Bob Herbert, Congress, Fat Cats, Henry Paulson, NY Times, President-Elect, Treasury, Wall Street

>Beyond the Fat Cats

>NY Times Op-Ed Columnist Bob Herbert  rants on that about how the Democrats and President- Elect Obama needs to look beyond the Wall Street fat cats and bring back a sense of fairness and equity to the economy. Its a good column and worth a look.

“The most important thing the Democrats and President-elect Obama can do with regard to the economy is bring back a sense of fairness and equity.

The fat cats who placed the entire economy at risk with their greed and manic irresponsibility are trying to lay claim to every last dime in the national Treasury. Meanwhile, we’re nowhere close to an economic recovery program that will help the people who are hurting most.

Back in September, with the credit markets frozen and the stock markets panicking, the treasury secretary, Henry Paulson, was telling anyone who would listen that his $700 billion bailout package had to be passed with lightning speed — no time to look at it too closely, no time for dissent.

The package was modified, but hurriedly. Now we learn that while all eyes were focused on this enormous new burden for American taxpayers, Mr. Paulson’s department was also engineering — separate and apart from the bailout — what The Washington Post described as “a quiet windfall for U.S. banks. ”

With virtually no public attention, and without the input of Congress, Treasury made a change in an obscure tax provision that benefited banks to the tune of well over $100 billion. Was this good policy? In the absence of proper scrutiny, how is it possible to know?

We’ve also learned that the government bailout of the giant insurer, the American International Group — already more than $100 billion — is apparently insufficient. Tens of billions more are needed….”


Click HERE to finish reading Bob Herberts column from the NY Times

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Filed under AIG, bailout, Barack Obama, Bob Herbert, Congress, Fat Cats, Henry Paulson, NY Times, President-Elect, Treasury, Wall Street

FBI Opens Financial Fraud Investigations

Think Progress

The FBI has opened investigations into Fannie Mae, Freddie Mac, Lehman Brothers, and AIG, looking into whether “fraud helped cause some of the troubles” at these financial institutions. According to the FBI, these probes “are part of an effort to pursue allegations of higher-level fraud more sweeping than the retail-level infractions that have been at the center of most cases brought so far.”

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Filed under AIG, Fannie Mae, FBI, Financial crisis, fraud, Freddie Mac, Lehman Brothers

>FBI Opens Financial Fraud Investigations

>Think Progress

The FBI has opened investigations into Fannie Mae, Freddie Mac, Lehman Brothers, and AIG, looking into whether “fraud helped cause some of the troubles” at these financial institutions. According to the FBI, these probes “are part of an effort to pursue allegations of higher-level fraud more sweeping than the retail-level infractions that have been at the center of most cases brought so far.”

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Filed under AIG, Fannie Mae, FBI, Financial crisis, fraud, Freddie Mac, Lehman Brothers