The Case of AIG: U. S. Leaders Incite Rage and Possible Violence
Posted: Wednesday, March 18, 2009
by Jean Purcell
OpineBooks.com
In the case of AIG Financial (not the Insurance division), one Senator has proposed that AIG executives receiving bonuses either give the money back or commit suicide.
Senator Grassley denies that that was a serious statement on his part. It was only an example of the seriousness of the situation, he claims.
One committee chairman, Barney Frank, wants the name of every AIG exec that got a bonus recently. If that happens, those names will be public, and this causes safety concerns, according to the CEO of AIG. He told Frank, and the Banking/Finance committee Frank chairs, that death threats against these execs are coming in, including threats to hang them and their families with piano wire. He read a death threat to the committee!
What is wrong with this picture? Today, the Washington Post and other news outlets revealed that the recent Congressional bill on these matters, approved by a majority of the House and Senate and signed into law by the President, included an exemption for companies like AIG.
AIG had contracted bonuses. They were legal contracts, private between a corporation and its employees. Like it or not, if their legal contracts become the business of government, the precedent will be set for anyone on any job, with personal information included for public display. What honest person wants to be put on display for nothing more than to help media on bad news days? One can only imagine the pick-up in LexisNexis searches for anyone.
The President and the Secretary of the Treasury knew about the AIG contracts before they were fulfilled. Not only that, as the Post and others disclose, the President signed the bill that exempted any companies with contracts prior to February 11, 2009. Congress, including Senator Chris Dodd, knew that AIG was included under that language. Why did they not inform the President when they heard his anger toward AIG? In other words, AIG got a legal pass in U. S. legislation through the language of the bill.
It is the job of the Office of Management and Budget to go through, line by line, every piece of budget legislation to be sent to the President for signature. They go through the legislation in its final form so that the President knows what he is signing.
Now, the White House claims that "no one read the bill"!
The truth is that if this is true, the chief budget office of the President, the Office of Management and Budget, failed with a failure of dynamite proportions. The Office, known as OMB, is the Executive Office responsible for every President's annual budget sent to Congress. And the President's administration staff are responsible for making sure the OMB reads budget legislation!
Yet, now we learn that not only did the members of the Legislative branch, the Congress, who voted "yes" for the legislation, fail, but also the Executive branch, the Office of the President, also failed the American people--due to OMB failure. The OMB is part of the Execturive Office. Therefore, given this gross lapse in responsibility on the part of OMB, should the President keep his new OMB chief ?
Let the light come in, no shadows, on this matter: the U. S. Congress members that voted "yes," and the President and his administration are responsible for the bills they draw up and the bills they sign.
If the U. S. Congress is trying to hide the fact that they knew that the exemption for AIG-like companies was in the bill they sent to the President...
If the President and OMB and the Treasury Secretary did [or did not] know what was in the bill...
Then a whole lot of failure has been going on and the American people are the brunt of tomfoolery they do not deserve. No one likes to be taken for a dope. Apart from the Post and other media, we might have fallen for it.
The U. S. Congress members that voted for the legislation and the President and his people are now attacking AIG. They are not pretending ignorance, it appears, in the case of the Executive branch, for they say they never read the bill. The President never had OMB read the bill he was signing!
I hate to hear irate commentators say "the government" failed us. "The government" did not fail us. Those involved in this did move too quickly in the first place, in my view, and now need to come clean with all the facts, to avoid more anger being raised against families of AIG execs.
Thanks to journalists, we are learning more. If you and I want to help save or protect some lives, since words can lead to bad actions, then it seems that we need to share the facts as they continue to unfold.
Only today, we learned that Chris Dodd, who got AIG donations for his campaigns and who authored the exemption to the legislation, says he did not author it, that "someone else slipped in that wording." Right. Based on Congressional behavior thus far, by those supporting these bills, we can believe them like one would believe an unreformed Pinocchio.
Let's work and pray that no AIG spouse or child gets hurt as a scapegoat for the actions of others in Washington. Seriously.
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Top-level comments on this article: (5 total)What has happened to us? Where is our compassion and common decency? When congress no longer cares about innocent lives!- we are unraveling the fabric of this great nation, and our humanity. I pray for us and our countryLet's not be discouraged. We have much to be thankful for, to live in this remarkable country where we can express ourselves factually and strongly without cruel attacks when we suspect wrongs going on or building up. We will fail at times, but the discipline of self-control re: words can bring change. The Bible says, "Be angry, and sin not." If only this will be a guide. Thank you for your comments.
My only comment is: Why on earth did AIG even agree in contract to give these executive bonuses when the company is doing so badly? I have seen this happen in so many companies, including the one I retired from a few years ago. Top management, who could not even do their jobs properly, were given large bonuses, whileus common folk working the floor, were taking pay cuts. Where is the justice here?Hi, David,
I agree with you about the contracts. You saw it up close and personal.
My concern is that our legislative and executive branches of government, through a majority of elected officials and leadership, enabled those contracts by protecting them in new legislation.
I appreciate your comments always.
Jane
And the government knew where the money would go before AIG got it, but are now "outraged." Give me a break...Hi, Ken.
Yup.
Jane
Jane another good article. What is happening is what we allow. We have allowed this nation to be taken over by those who's serve for their own ends. Their deeds magnify that statement every day. Outrage, anger, disgust certainly but they fail to include themselves. Yes there are no mirrors in any governement legislative branch state or federal. They should be so swampede with discust letetrs and emails they shiver in their boots. It is time to impeach. Good job.
Dear Robert. You probably already know that I am pushing voters to watch the terms of their senators and representatives in the U. S. congress and by their votes impose limits on each one of 12 consecutive years, regardless of Party. That could help ratchet down the power excesses on Capitol Hill. Both senators in Maryland, where I live, are ready for a rest, having served far more than 20 years each in Congress. Our seventh district representative is about to hit that limit. If these public servants are voted out, they return home and live more as "regular people." Then, they can run again the next time around if they want to do so. There is so much entrenched power now in the Legislative branch that the only solution, I think, is in voters' hands.
Sorry I went on so long. I always appreciate your comments. Thanks for writing!
~Jane
Jane, this was an excellent article. The truth is seeping through now a little. Chris Dodd now admits he did it, but that he was pressured into it by the treasury. All of them knew the bonuses were in there, why else would they want to change the language in it?This should be a criminal act. To change the wording of a bill after it had already been on the floor and people made up their minds as to which way to vote...minus the new language. That is fraud of the worst kind. The bad part is, no one will be punished for this.Joel, you said it all. I agree that it is criminal and fraudulent. I only wish that nationally the voters would decide that, law or no law about term limits, we will not allow anyone to serve more than 12 consecutive years in Congress before getting out, going home, and trying again if they want to, yet knowing they can no longer count on holding onto power. Most congressional people right now have been there far too long, have developed the inevitable arrogance that comes with too much power for too long. It is sad to say, but it seems that most in Congress are too far gone into power politics to change, apart from spiritual awakening. Thanks for this comment.
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