Bailouts to pay AIG bonuses...? This shit must cease...!

"...the firm is contractually obligated to pay them..."

hello...? a case can be made under legal precedent that the conditions that necessitated an unprecedented $170B bailout in the first place also create the conditions under which such contracts can be voided...

A.I.G. Planning Huge Bonuses After $170 Billion Bailout

The American International Group, which has received more than $170 billion in taxpayer bailout money from the Treasury and Federal Reserve, plans to pay about $165 million in bonuses by Sunday to executives in the same business unit that brought the company to the brink of collapse last year.

Word of the bonuses last week stirred such deep consternation inside the Obama administration that Treasury Secretary Timothy F. Geithner told the firm they were unacceptable and demanded they be renegotiated, a senior administration official said. But the bonuses will go forward because lawyers said the firm was contractually obligated to pay them.

The payments to A.I.G.’s financial products unit are in addition to $121 million in previously scheduled bonuses for the company’s senior executives and 6,400 employees across the sprawling corporation. Mr. Geithner last week pressured A.I.G. to cut the $9.6 million going to the top 50 executives in half and tie the rest to performance.

what a bunch of crap...

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