Archive for the ‘bonus’ Category

Sen Dodd brings more doubts on the honesty of government officials

March 20, 2009

Sen. Christopher Dodd (D-Connecticut,) who is chairman of the Senate Banking Committee was given preferential treatment by Country Wide Mortgage Co, the leading mortgage company which made bad decisions and needed bail-out from government.

The lawmaker from Connecticut, an ardent democrat and supporter of Obama is under investigation by the senate ethics committee for refinancing his homes with a special rates by the mortgage company—part of the “V.I.P.” program that gave lower than usual rates given to “friends” of the company.

Dodd got a low 4.25 percent interest rate on a $506,000 refinancing loan for his Washington town house, and another low 4.5 percent rate on the $275,000 loan on his East Haddam home—all because he is classified as VIP and friend of Country Wide. —US News / AP (01/23/09)

This is the same 64-year old Dodd who received hefty campaign money from AIG. Now, the senator is being blamed for letting the bonuses to be paid by the American International Group (AIG) to its employees amounting to up to a staggering $165 million. The money however is a drop in the bucket—a small part of the trillions of dollars Barack Obama has planned to spend using American taxpayers’s money. The spending can compromise the finances of the next generation.

After wavering on his role in the AIG mess, Dodd is singled out as the person who added protection in the stimulus package that allowed the giving away of bonuses to AIG executives who were responsible for the company’s failure.

“Republicans are also turning a spotlight on Dodd’s longtime friendship with Edward Downe Jr., a former director of the Bear Stearns investment firm who was snared in an insider trading scandal. Dodd owned a condo with Downe in a fashionable Washington neighborhood but bought out Downe’s share in 1990 after learning Downe was under investigation. Downe eventually pleaded guilty to trading inside information.”—-Yahoo News/ AP (03/20/09, Miga A)

If Obama’s administration is filled with people of shabby integrity, how can America expect a quick recovery from the economic crisis? Many critics think there isn’t much difference in how Capitol Hill is being run. The same rotten greed, denials, and lies are coming out early on in the new administration whose campaign promise is “change.”

The exposure of Dodd comes at a bad time that Treasury secretary Tim Geithner is besieged with calls to resign after accepting a job that looks after public money when he is among those who avoid paying taxes. According to Dodd, Geithner asked him to remove the executive bonus restriction in the big economic stimulus package lawmakers in Capitol Hill approved last month. This decision permitted AIG officials to rake in the controversial bonuses. (Photo Credit: PD)=0=

RELATED BLOG: “AIG’s excessive bonuses of $165 million infuriate Americans” Posted by mesiamd at 3/18/2009


AIG’s excessive bonuses of $165 million infuriate Americans

March 18, 2009

It is if the world has to be reminded that greed is alive in the failing financial institutions bailed out by the US government. After American International Group Inc. (AIG) received its 170 billion rescue package, it has allotted $165 million to pay for company bonuses. This is very infuriating for the ordinary citizens who contribute tax dollars to help prop up the ailing economy.

“Fresh details pushed outrage over AIG ever higher: New York Attorney General Andrew Cuomo reported that 73 company employees received bonus checks of $1 million or more last Friday. This at a company that was failing so spectacularly that the government felt the need to prop it up with a $170 billion bailout… On Capitol Hill late Tuesday, House Democrats directed three powerful committees to come up with legislation this week to authorize Attorney General Eric Holder to recover massive bonus payments made by companies like the ones paid last week by American International Group Inc.” —–Yahoo News/ AP (03/17/09, Kellman, L)

Will the US government recover the bonuses? Who knows?

Republicans blamed the democrats for doing little in preventing this scandalous diversion of money. The giving away of hefty bonuses wasn’t done by AIG alone, but politicians in Washington are feigning outrage. Earlier Merrill Lynch paid $3.6 billion in bonuses to its executives while it negotiated its sale to Bank of America Corp., a big recipient of government bailout.

The rescue packages for ailing businesses and financial institutions which made bad decisions aren’t politically popular. It gives a bad rap on the Obama administration. Innocent people in the street are suffering for the big companies who take advantage of the bail-outs.

A growing number of irate Americans think Treasury secretary Timothy Geithner did little to prevent the giving of excessive bonuses to happen. It is believed that he knows about this bonuses early on. There are those who opine Geithner whose appointment by Obama was questioned because of failing to pay taxes must be fired.

Party supporters of Obama want the return of the bonus money to the government prompting democratic senate majority leader Harry Reid to say recipients will not be allowed to keep the money. Many Americans however are distraught to realize how untrustworthy the deals have been, compromising the taxes they give the government. They can’t fathom how leaders could be so arrogant,, extravagant, and callous to have these massive bonuses at the expense of American taxpayers—at a time when they are saddled by joblessness, loss of savings and pension plans, a slump in housing market, and bankruptcies of businesses and financial institutions. (Photo Credit: drugs crews 2)=0=


In spite of a collapsing financial world, $18.4 billion were spent for greedy bonuses in Wall Street

January 30, 2009

If there is consolation to American taxpayers damaged by the economic meltdown, Pres. Barack Obama criticized billions of astounding spending. He decried as “shameful” and “irresponsible” the $18.4 billion bonuses distributed during the past year for workers in Wall Street. Yes! In spite of a 44% cut on yearend perks given to the money merchants, the amount clearly shows the extravagance and greed of the people who are partly to blame for the financial crisis. A staggering $18.4 billion was spent as giveaways in spite of the $700 billion bail-out they asked and handed over by the government because of a crumbling economy.

This news doesn’t help the effort to bring back trust in the system. The disclosure speaks of top officials still engaged in reckless spending, some using large amounts of money in the shadows to continue their vice.

Amidst joblessness, home sales slump, and poor stock performance, Obama is facing the challenge of making the public believe. Congress has just approved the $825 billion “stimulus package” which is basically another big spending to mitigate the damaging effects of the financial mess. More enraged Americans fear that unless transparency and ethical practice in business is restored, there is little reason to hope that confidence will come back and the economy will be fixed in due time. (Photo Credits: Epicharmus x 2)=0=