There was no "secret provision" to allow AIG bonuses

[kpete]

There was no "secret provision" to allow AIG bonuses
by Jed Lewison
Thu Mar 19, 2009 at 01:22:03 PM PDT

A storyline is emerging in Republican circles and throughout media land that Chris Dodd and the Treasury Department secretly inserted a provision into the stimulus bill that allowed AIG to pay its failure bonuses.

There's only one problem with this narrative: it is completely false.

With or without the stimulus bill, AIG would have been allowed to pay its failure bonuses. In fact, at no point in time was there every a law barring the bonuses.

Given that the bonuses were never illegal, there was never any need to create a new loophole to allow them. They were allowed all along.

What actually happened was that the stimulus bill put new restrictions on bonuses, but only applied those restrictions on bonuses that were given out after the legislation passed.

more here:
http://www.dailykos.com/storyonly/2009/3/19/710606/-There-was-no-secret-provision-to-allow-AIG-bonuses

[soothsayer]

1. Somebody better tell Geithner because he's out there admitting it

(CNN) — Treasury Secretary Timothy Geithner told CNN Thursday his department asked Sen. Chris Dodd to include a loophole in the stimulus bill that allowed bailed-out insurance giant American International Group to keep its bonuses.

[malaise]

2. I am really lost

I remember several DUers bawling about the bonuses since last year and they were never illegal. Indeed it was said Rushicans who were defending the bonuses back then saying the government needs to stay out of market decisions.

[Gin]

3. (IMO) so much has happened...so many jobs and money lost..

this (bonus issue) was the last straw...critical mass has been achieved.

[donheld]

4. This is why so many tune out the news

There is a "secret provision" then there isn't a secret provision. One news source says it's so another says it isn't so. One Sqwacking head says it is another says it isn't. Soon people get crazy lost in trying to find out what's true and what's false and just decide they can't keep up and so they just ignore the whole process. Knowing who's telling the truth and who's not is almost a 24/7 job. Most don't have that kind of time or patience.

[BuyingThyme]

5. Jed is lying. Dodd and Obama conspired to create a loophole

and then conspired to conceal how it came to pass.

These apologists are out of hand now and are only making things worse.

[malaise]

7. GAO said the bonuses were put there by Bush

last year. KO and Fineman were discussing that.

[BuyingThyme]

8. That's a different topic.

There are the bonuses and then there is the legislation.

[Romulox]

6. The OP is completely misleading.

AIG is INSOLVENT. Thus, while it would not be illegal for them to pay these bonuses without government action, it would be impossible. The reason for this controversy is that AIG is in business only because the US taxpayer has provided it with $180 billion to remain afloat.

:hi: