'Show Business on the Hill. AIG and the Posturing Democrats '

[leftchick]

http://www.counterpunch.org/abourezk03172009.html


The story came to mind this week when various members of Congress were seen railing on television about the AIG bonuses. After receiving $150 billion from taxpayers, AIG executives decided to pay tens of millions in bonuses to their executives. The result was not surprisingly, a firestorm of criticism, with Congressman Barney Frank and Senator Harry Reid leading the pack. What is surprising is that both Frank and Reid, and others, had fashioned the legislation that gave the series of bailouts to AIG.

Somehow, the issue of non-control of the corporations that are effectively now owned by the government because of bailout money, escapes me. First of all, what was to prevent the Congress from inserting conditions on their bailout of no bonuses? That is, of course, a rhetorical question, because the Congress could have placed any condition it wanted in the bailout bill.

AIG explains that it is bound by contract, contracts made last year, to pay the bonuses. Not that I don’t believe what AIG tells us, but what is to prevent the Congress or the Secretary of the Treasury from examining those contracts?

Secondly, what company would sign a contract paying a bonus to a failed executive? Aren’t bonuses usually paid for successful operation of companies?

Getting back to the vociferous complaints by the same members of Congress who fashioned the bailout legislation, the situation is very much similar to the Mel Brooks movie, “Blazing Saddles.” The pertinent segment of the movie involved a black sheriff having been appointed to enforce the law in a small, racist, western town.

When it appeared that the good townsfolk were about to do injury to the new black sheriff, he pulled his six gun and held it to his own head, saying, “Back away, or the black guy gets it.”

[chimpymustgo]

1. Repost from kpete: Before the Fall, AIG Payouts Went to Washington

Before the Fall, AIG Payouts Went to Washington
Posted by kpete


Published by Massie Ritsch on March 16, 2009 11:16 AM | Permalink | Comments (1)

As long as everyone's talking today about AIG's payouts to its executives and foreign banks, let's remember the payouts AIG has made over the years to politicians. In the last 20 years American International Group (AIG) has contributed more than $9 million to federal candidates and parties through PAC and individual contributions. That's enough to rank AIG on OpenSecrets.org's Heavy Hitters list, which profiles the top 100 contributors of all time.

Over time, AIG hasn't shown an especially partisan streak, splitting evenly the $9.3 million it has contributed since 1989. In the last election cycle, though, 68 percent of contributions associated with the company went to Democrats. Two senators who chair committees charged with overseeing AIG and the insurance industry, Sen. Chris Dodd (D-Conn.) and Sen. Max Baucus (D-Mont.), are among the top recipients of AIG contributions. Baucus chairs the Senate Finance Committee and has collected more money from AIG in his congressional career than from any other company--$91,000. And with more than $280,000, AIG has been the fourth largest contributor to Dodd, who chairs the Senate's banking committee. President Obama and his rival in last year's election, Sen. John McCain (R-Ariz.), are also high on the list of top recipients.

AIG has been a personal investment for lawmakers, too. Twenty-eight current members of Congress reported owning stock in AIG last year, worth between $2.5 million and $3.3 million. Sen. John Kerry (D-Mass.), one of the richest members of Congress, was by far the biggest investor in AIG, with stock valued around $2 million.

Last year AIG and its subsidiaries spent about $9.7 million on federal lobbying, or about $53,000 for every day Congress was in session in 2008. The company's spending on advocacy last year was down from an all-time high of $11.4 million spent on lobbying in 2007.

http://www.opensecrets.org/news/2009/03/before-the-fall...

*****

Send in the clowns...