3月18日
It All Comes Out In The Wash
As my grandmother use to say, “It’s all coming out in the wash.” In the current hearings on Capital Hill concerning AIG and their bonuses, Senate Banking committee Chairman, Christopher Dodd told CNN that he was responsible for the language added to the federal stimulus bill to make sure that already-existing contracts for bonuses at companies receiving federal bailout money were honored.
The Treasury Department stated it was because administration officials were afraid the government would face numerous lawsuits without the new language. Senator Dodd stated that the “grandfather clause” language “seemed like innocent modifications” at the time.
AIG chief executive, Edward Liddy, told Congress the roughly $165 million in bonuses were “distasteful” but necessary because of legal obligations and competition. These bonuses were suppose to be retention bonuses to keep employees until certain departments (the ones gone bad) could be closed out. However, some of the employees receiving the retention bonuses have already left the company. Explain that one Mr. Liddy.
I have to agree with U.S. Representative, Barney Frank, from Massachusetts, who stated, “We own this company in effect, and we’re not asking that these bonuses be rescinded because we have lent money to the company. I believe we are saying as the owners of the company, we do not think….we should have paid bonuses to people who made mistakes, who were incompetent.”
So, it all comes out in the wash. Our government knew about the bonuses, and they okayed the bonuses because they were afraid that if they didn’t okay the bonuses, employees (past or present) would take AIG to court for the bonuses.
Back in 1994 I worked for a government contractor at Offutt AFB, Nebraska. This contractor took social security, federal tax, and state tax out of we, the employees, pay; however, they never paid it to the government. So, the IRS came in one day and shut us down, tagged everything in the office, and told us to leave. This was all without notice to us, the employees. Now we, the employees, were out of a job. We went to court because we, the employees, had been given bad pay checks and they all bounced and we wanted our money. The IRS sent a representative to the hearing and the judge awarded any monies from the sale of the contractors property to the IRS. They told us, the employees, that it was too bad; however, the government had first claims. In other words, the government of the U.S. could screw us, the employees, out of our monies just because they came before us in the pecking order. And, I know the bankruptcy laws, government agencies are paid first. So, the government being afraid of people taking them to court is a line of bull.
Change, what change? The government is still sneaking around, lying to the American citizen. And, why? Because they just want to get their share, and pay for it with our taxpaying dollars, and they don't give a darn about us, the taxpayer who is getting screwed in more ways than one. So much for change and honesty in Washington DC. Don't hold your breath until things change in DC.