Sanity: Kyl blocks bill on AIG bonuses to give Senate time to think things over
posted at 8:26 pm on March 20, 2009 by Allahpundit
In which a sunbeam of reason breaks through a populist cloud cover as thick as we’ve ever seen. Isn’t much of the damage already done by now, though, regardless of whether any bill actually passes? AIG’s sending around memos to its employees warning them not to wear the company logo lest it attract the attention of violent nuts. One manager told the AP this afternoon how frightened everyone is even as “activists” are making plans to drive by some of the executives’ houses tomorrow, ostensibly to deliver letters of protest. Scan some of the choice quotes about McCarthyism and witch hunts collected by the Financial Times and ask yourself how any TARP company’s going to attract employees who know they could become targets for Congress or for vigilantes at any moment. The bonuses are almost irrelevant now. It’s the demagoguery, stupid:
Sen. Jon Kyl, the Republicans’ vote counter, blocked Democratic efforts Thursday evening to bring up the Senate version of the tax bill to recoup most of the $165 million paid out by AIG last weekend and other bonuses in 2009. The House had swiftly approved its version of the bill earlier in the day.
By rushing, Kyl said, Democrats were letting populist outrage trump informed decision making in the Senate, which is supposed to be insulated from the pressures of public passion.
“I don’t believe that Congress should rush to pass yet another piece of hastily crafted legislation in this very toxic atmosphere, at least without understanding the facts and the potential unintended consequences,” Kyl said on the Senate floor. “Frankly, I think that’s how we got into the current mess.”…
How to impose those taxes without running afoul of the Constitution or the law is a dispute that has Republicans urging a go-slow approach. Doing so, of course, would drag out the Democratic discomfort over administration missteps and provide plenty of time for the GOP and others to question Geithner’s performance.
Smart policy and smart politics. Follow the link up top for a description of just one unintended consequence, namely the fact that companies will inevitably try to skirt the tax by paying employees an increased salary rather than a bonus, which will leave them on the hook for compensation even if a worker underperforms or the firm has a bad year. The banks we’re supposedly trying to save, in other words, are being run further into the ground thanks to grandstanding crap like this. Exit quotation: “The real lesson here, unfortunately, is that it’s a disaster for the government to run private companies. We used to understand that. But ever since we started telling ourselves that we had to save bankrupt institutions by taking them over and pretending not to ‘nationalize’ them, we have apparently forgotten.”
Blowback
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Who are we trying to kid? At best, they might now skim the executive summary prepared by the staffer who read the bill. Most of these grandees in the House of Lords don’t even have to wipe their own asses.
A Balrog of Morgoth on March 20, 2009 at 10:04 PM
You mean there won’t be public executions this weekend?!
PattyJ on March 20, 2009 at 10:06 PM
As an Ohioan and an American, I think he’s tremendous. I’m hoping that in 2010, Ohio will elect someone similar to join him–Rob Portman. I think he has a good shot at taking the seat that Voinovich will be vacating.
BuckeyeSam on March 20, 2009 at 10:07 PM
You got that right……..
Seven Percent Solution on March 20, 2009 at 10:14 PM
How could republicans be so out of touch?
Someone needs to focus the idiots, and teach them: democrats have one objective, one goal: to use the word “bipartisan” when referring to this unconstitutional gouging of private citizens’ earnings.
Is it that republicans are unaware of how business works?
Executives work far below their market value on the gamble that they will achieve their performance targets, and if they do, they receive bonus pay that basically evens them out over the course of several years.
Why the hell are republicans allowing democrats to frame this narrative of bonus pay being a handout?
Here’s a metaphor for leftists.
Say you work as a waiter at a restaurant. If you basically show up for work, you get minimum wage or less. If you perform exceptionally well, you get tips from your tables. You congressional bastards are now doing the equivalent of taxing the crap out of waitress tips on some perverted theory that their gains are ill gotten.
Democrats are jerks, but we knew that. What in the hell are republicans doing joining this disgraceful lynch mob?
jeff_from_mpls on March 20, 2009 at 10:14 PM
I think this is an excellent idea, so far as it goes. In each year that Geithner cheated on his taxes, he signed one penalty-of-perjury statement to receive his self-employment tax gross-up and a second penalty-of-perjury statement on his Forms 1040. Not one of those statements proved to be a deterrent for him, and not one of those statements proved to be hurdle high enough to discourage Obama from nominating him and from the Senate for approving him.
Again, excellent idea, but in the moral relativism of the age of Obama, I’m not sure the requirement would have any teeth.
BuckeyeSam on March 20, 2009 at 10:16 PM
This ray of sunshine will be squelched, there are nests to be padded and eggs to be protected. I try to stay positive but my natural inclinations always lead me back to the notion that the firestorm is barely being contained day by day.
Bishop on March 20, 2009 at 10:20 PM
There are several organizations that could be used for this sort of “theater”. The most vicious would be the “Fruit of Islam”, the paramilitary wing of the Nation of Islam under Louis Farrakhan. I don’t see it being effective though. You can’t guard every Liberal Judge, Congressman, Senator and GS-7 and above Agent of the Fed. People in this country are too aware of the “Hitler Youth” analogy to let it go that far, especially in that we probably have at least 1 million snipers in this country, literally hundreds of millions of firearms, how can you stop them? However, I don’t know enough about the history of such movements to give an opinion. I am not trying to hijack this thread, but can someone steer me to a good book on the subject of “Youth Subversion”.
GunRunner on March 20, 2009 at 10:31 PM
The entire Obama/Dem strategy seems to be to keep everything in a crisis mode which they could use to acquire more power. More and more the Dems look like the Nazis who used similar measures (the scape goats were the commies and the Jews) to attain ulimate power over all.
docdave on March 20, 2009 at 10:35 PM
Deanna on March 20, 2009 at 10:48 PM
Congressional Manual:
HOW TO DESTROY A PRIVATE COMPANY
#1) Pretend they need financial help and buy up to 80% of stock.
#2) If you have any stock in the company, sell and put in an overseas account.
#3) Make sure the public understands that without the governments help (infusion of printed money) the company will not only fail, but also the entire economy. (make sure this is released to the ignorant media that will publish anything we want).
#4) Expose all executives as greedy capitalist and publish their compensation as “bonuses” to enrage the general public.
#5) Make sure to check with the President’s schedule so that all publications are released while trillions of social programs are passed, and the President is busy filling out his basketball bracket and making appearences on comedy shows.
#6) THIS ONE IS REALLY CRITICAL—TRY TO PRETEND THAT THIS IS ALL GOOD FOR THEIR COUNTRY WHILE YOU’RE STICKING THEM IN THE ASS. AND REMIND THEM THAT THIS IS ALL THE FAULT OF THE PREVIOUS ADMINISTRATION.
#7) When the company stock hits zero, find another greedy capitalist company and start over.
#8) If you run into any problems, consult your local community organizer. (it’s in the phone book under used teleprompters)
Rovin on March 20, 2009 at 10:56 PM
And here is applause for Allah! Spot on!
For this – we will find you a better mate than Megan McCain!
HondaV65 on March 20, 2009 at 10:56 PM
Did anyone notice that the signs the protesters were carrying were all professionally made? Maybe by acorn and the money they are getting from the stimulus!
I thought the congressmen were despicable when they questioned the head of AIG. He’s only been there a couple of months and gets $1.00 a year. Give him a break. The congressmen are the criminals. Plus the community organizer!
Bambi on March 20, 2009 at 10:58 PM
Very possible. However, can we say that we still have standards and we expect that when people in Congress vote for a bill, they have… read it? Once. Please?
radiofreevillage on March 20, 2009 at 11:08 PM
Until the Left goes after the Union thugs, I will have no time for any of their rants about morality. They have no credibility whatsoever when it comes to equality under the law.
OldEnglish on March 20, 2009 at 11:34 PM
Thanks, Kyl. Finally, a republican with common sense shows up.
Vashta.Nerada on March 20, 2009 at 11:53 PM
This is all so very French revolution-ish to me.
Off with their heads!
(disclaimer: The previous line is merely sarcastic humor lampooning the attitudes of the Democraptic elite in Congress.)
Mojave Mark on March 20, 2009 at 11:57 PM
The problem is bonuses based on volume, not profitability. Change that, then bonuses make sense. I’ve seen huge bonuses paid for blocks of business that ended up losing big money for a re-insurer; mortgages should work the same way.
michaelo on March 20, 2009 at 11:57 PM
All this over something everybody knew beforehand.
Let ‘em keep the money, let ‘em spend it and boost the economy.
TinMan13 on March 21, 2009 at 12:04 AM
Finally! A voice of reason speaks to quite the rantin haters in congress! Great Job, Sen Kyl, we need to slow down and not rush to punish AIG employees for Obama/Geithner/Dodd’s errors.
TN Mom on March 21, 2009 at 12:33 AM
Amen!
- Constitutional amendment proposal #2: Each member of Congress will serve two terms maximum.
- Constitutional amendment proposal #3: Each member of Congress will get a raise only when the constituency votes in a national referendum.
- Constitutional amendment proposal #4: There will be no retirement pay for Congressmen since they will have served a maximum of 12 years. They can invest in a 401K. The money must be invested in the U.S. stock market.
- Constitutional amendment proposal #5: Every Congressman will have to pay for his/her own healtcare.
- Constitutional amendment proposal #6: Government officials who do not pay their taxes shall be prosecuted, relieved of duty and jailed.
- Constitutional amendment proposal #7: Congressmen will receive no additional benefits above those earned by the average citizen.
Good for starters. Do I hear proposal #8?
Christian Conservative on March 21, 2009 at 12:41 AM
#8: No spending bill may be longer than 100 pages, using 12-point Pica type. Congressmen who wish to vote on a bill will be expected to take a randomly prepared quiz on its contents. Failure to achieve at least 90% on this quiz disqualifies the congressman from voting on the bill. Failure to pass three such tests in a calendar year results in immediate expulsion from office.
Doctor Zero on March 21, 2009 at 12:51 AM
Christian Conservative on March 21, 2009 at 12:41 AM
#9: NO closed-door meetings. Any/All meetings made available to the taxpayers via online video.
TN Mom on March 21, 2009 at 1:02 AM
Why is the anger at the companies? Why is it the AIG employees who are suffering even further by this government interference. They are folks working for what used to be a solid company now they fear for the safety of their families.
The Democrat Criminals in congress have made private citizens targets of mob violence to deflect the congress from having to pay for their own crimes. The protests shouldn’t be against AIG it should be against congress.
Nobody forced congress to take the bribes (campaign donations) to dismantle our banking system. Congress has done this to us and they are getting away scott free! No accountability. No transparency, in fact finger pointing at business people trying to make money. Which is not a crime!
By the way why during all the Madoff mess why weren’t we informed who in our government he paid off? Who did Madoff contribute to all these years that made him so well connected that he was above suspision?
My guess it was Democrats or we would have heard all about it. Follow Madoff’s campaign contributions and you will find dishonest politicians.
petunia on March 21, 2009 at 1:26 AM
Because they (AIG and some others) almost brought the economy down, 401k’s down by almost half, unemployment up and rising, etc. with their riverboat gambling, lack of fiduciary duty to their shareholders, and probably fraud, and have sucked up, what?, 165 BILLION? dollars, so far, of either the taxpayers or the grandkids money.
That is the same poor-little-victim-in-great-danger line that muslims use and there actually have been a few attacks on muslims and that he needs all his money back to protect himself.
Don’t be surprised if Madoff starts saying his life is in danger in prison so he should be let go.
MB4 on March 21, 2009 at 2:03 AM
AIG has been a Ponzi House-of-Cards for a long time now, probably longer than Enron was before their luck ran out.
MB4 on March 21, 2009 at 2:06 AM
That is the same poor-little-victim-in-great-danger line that muslims use and there actually have been a few attacks on muslims
and that he needs all his money back to protect himself.Don’t be surprised if Madoff starts saying his life is in danger in prison so he should be let go and that he needs all his money back to protect himself..
MB4 on March 21, 2009 at 2:09 AM
I feared back on November 4th that things could get bad. I certainly didn’t think that it would get this bad, this fast.
I hope that history holds the American media to account for their misdeeds. If they had told the “sound bite” people, the truth about this TOTUS, we might not be in this situation. I often wonder if members of the media are starting to worry.
I remember the 1970′s. One good thing I guess…everyone pays the same price in the store(at least for now). At least the stupid Democrats and turncoat Republicans that voted for this circus will pay just as badly as the rest of us. Small consolation…
S
Susanl on March 21, 2009 at 2:24 AM
I cannot find any evidence that Geithner was concerned about legal challenges before AIG told him to be, shortly before the payout on March 15, 2009.
I’m not quite sure why he’s so afraid of these suits, anyway — we’re told all these bonus recipients fear for their lives as they are plagued by death threats. Are they going to want to file very public lawsuits that expose their names and salaries? That doesn’t make a whole lot of sense. They are government employees at this point and by all rights should have to do that anyway, but they appear extremely reluctant to do so.
So, the question arises — exactly who is it that’s running the Treasury?
- Jane Hamsher (Firedoglake)
MB4 on March 21, 2009 at 2:45 AM
What they should have done before voting on the stimulus and budget.
Johan Klaus on March 21, 2009 at 2:50 AM
Idiots don’t think, they feel.
OldEnglish on March 21, 2009 at 2:59 AM
When I hear the words ‘witch hunt’ and McCarthyism it leaves me cold. I am not an Acorn supporter but I would gladly sponsor a fistshaker at the residences of these crooks
The money speculator club threatens that ‘talent’ will flee these failed banking institutions unless they can keep taking million dollar bonuses from a depleted pot refilled with taxpayer money.
Enraged taxpayers, and I know many, are not on a witch hunt. They just want to beat these punks silly if they make another move toward our money.
As for talent, the failed banking houses are riddled with the pampered idiot friends, relatives and usefuls from the incestuous halls of the privileged
If the EU banks want this talent, good riddance
I am at loss to indentify the ‘talent’ at Fannie and Freddie except perhaps a talent for massaging Senators
The little guy is supposed to shut up and behave when the bank takes his house, or his IRA shrinks to zilch, or the insurance policy he paid on for years goes up in smoke, but the ‘talent’ of the great failed banking houses screams like banshees when they are caught feasting on taxpayer dollars
I am disgusted with the arrogant threat by the failed banking talents that they will payoff the taxpayer loans by tightening up credit on the little guy and the business community unless the complaining stops and they are allowed to keep draining off million dollar bonuses in peace
This is hardly a witchhunt. The taxpayers are remarkable restrained considering they have been kicked in the groin
entagor on March 21, 2009 at 3:26 AM
You made some good points, but I’d NEVER use the words of Jane Hamsher to make my case; there are others far more sane and less hysterically partisan to choose from.
Just sayin’.
Jenfidel on March 21, 2009 at 4:29 AM
Excellent point. President Bush had the foresight to address these bonuses. Geithner and Dodd are the ones who put them back in and Zero signed it into law.
This whole unread force feeding of this stimulus bill was designed from the get go to be stealth legislation.
This was no ‘accident’. It didn’t catch anyone by surprise.
I’d actually like to see AIG employees sue the government and win – and be awarded 3 times the bonus they should have gotten (as the contract states would happen if they do not receive the bonuses in a timely manner).
Zero laughs this off by saying ‘we’re broke – go ahead and sue’ on Leno.
Well Zero is sure still spending money and bailing people out – so I doubt we are so broke we couldn’t pay a few executives their bonuses.
Mr Purple on March 21, 2009 at 5:04 AM
petunia on March 21, 2009 at 1:26 AM
.
If you wish to bind someone to an ideology, trick him commit an abomination in its name. He then has to believe in the cause or know himself as a monster.
darktood on March 21, 2009 at 5:13 AM
marklmail on March 21, 2009 at 7:15 AM
The ACORN and SEIU rent a mob are covering the arses of their Democrat bosses. They are the same thugs that were blackmailing these same Bank CEO’s and Exec’s for more and more undeserved and high risk loans for minorities. They are using the exact same tactics….threats and thugary against their targets families.
SandyToes on March 21, 2009 at 8:28 AM
I see the point Kyle is trying to make. Still, there is a great amount of hostage-taking involved in these managers. We are told they are the only ones who understand the ‘complex’ financial instruments enough to unravel the mess. It’s time to stop using the people who created these instruments whose massively fictionalized accounting is the reason for this mess from propagating the fiction. Bring in people who don’t understand these instruments- and would apply hard and fast basic accounting to them to find out what they are really worth. Then you can figure out the real worth of things.
We have to stop playing the games that got us here, and change our fundamental philosophy of living beyond our means.
michaelo on March 21, 2009 at 8:48 AM
Good for Kyl. I can’t quite understand Obama’s recent cheerful messages, given he rammed through so much new debt on the basis of fear. The fear factor is just sky high right now. That’s the problem with his tactic. Once you unleash that, it’s impossible to contain it.
Dangerous.
AnninCA on March 21, 2009 at 9:16 AM
FT.com
Oh God forbid the companies actually let the free market take its course. They start giving back or refusing money and how is the messiah going to claim credit for “fixing” the economy?
katablog.com on March 21, 2009 at 9:34 AM
Gotta fix this one:
katablog.com on March 21, 2009 at 9:37 AM
This article reminds me that I need to email my GOP rep and rip him for voting for the 90% tax.
*shakes head
He voted against both the porkulus and the omnibus spending bill…I had such high hopes for him.
ladyingray on March 21, 2009 at 10:08 AM
You might remember that John McCain was out on the campaign trail promising to end large bonuses at private companies even before there was this premise of the publicly financed bailouts giving the politicians an opening to involve themselves in the matter.
Buddahpundit on March 21, 2009 at 10:24 AM
Ya think? Finally, a voice of reason.
scalleywag on March 21, 2009 at 11:37 AM
I’m not sure it’s in every morning paper, but in Friedman’s article entitled “Amid anger of AIG,……” There is a picture of protesters. The one with the megaphone whipping people up is wearing and arafat/palestinian scarf. Makes you wonder about the acorn people.
Bambi on March 21, 2009 at 12:03 PM
FIFY
You’ll be how we got deeper.
sethstorm on March 21, 2009 at 1:59 PM
…and that’s how we got our Third World friendly, citizen hostile part of the Republican party.
sethstorm on March 21, 2009 at 2:01 PM
“No man’s life, liberty or property are safe while the legislature is in session” – Judge Tucker
If you really want a lesson in finance, go dig up the 8ks and the 10q from AIG last November. Then for graduate credit, find out who worked for Paulsen when the deal was penned.
Oh yeah, one more thing, Thank you Senator Kyl! I knew Rodriguez (D) would vote the party line, but Lamar Smith (R) (The rep formerly known as conservative) voted for a tax hike, after the fact, and against our constitution. That’s not just un-american. That’s not Texan!
Blacksmith8 on March 21, 2009 at 2:04 PM
Most of what Texas does is un-American.
sethstorm on March 21, 2009 at 2:07 PM
By rushing, Kyl said, Democrats were letting populist outrage trump informed decision making in the Senate, which is supposed to be insulated from the pressures of public passion.
.
He could have added, by rushing to write the ‘stimulus’ bill, and rushing to vote it out of Congress, and by the President’s rushing to sign it unread, our elected representatives conclusively proved themselves to be the stupidest and greediest mobsters since the Tweed ring.
.
Greediest, because about half this obscene bill does nothing to stimulate the working person’s economy, and is merely designed to crookedly increase the resources of the political party with the long ears.
.
Stupidest, because the Dodd provision which everyone from the President on down is now fomenting mob hysteria against, was written in the bill, and plenty of folks knew about it. All those noble intellects in Washington fell over themselves to add this ‘legislation’ to our body of ‘laws’ in desperate haste, and now they have to join in a dishonest populist lynch mob in an attempt to shift blame by means of a 20-minute (well, 3-day) hate fest straight out of Orwell’s ’1984′.
.
Let not an incumbent remain seated in Washington following the 2010 elections.
Insufficiently Sensitive on March 21, 2009 at 2:31 PM
Entagor
.
This is exactly the kind of evil person the 2nd was designed to protect us from. He has no concept of the damage he is doing to a free society. “Sponsoring a fist shaker” is a cowardly and wrong. This is an attack on his wife and children. If his little “fistshaker” at the homes of these people gets a little out of hand, does the home owner have the right of self defense?
Hey Entagor! Now that it’s come out that Dims all knew about this long ago, that their “outrage” is all phony, still want to terrify their children?
GunRunner on March 21, 2009 at 2:37 PM
I guess it is un-american today to enforce immigration laws, keep government’s pork greedy snout out of my business, and build a future for my family without enslaving every other human in the country.
Here’s the problem with you and bamster’s joyride, like all joyrides, they end ugly. You probably won’t be around. Most joyriders never own up to their failures. As usual, I’ll be cleaning up the mess you and TOTUS have left.
But the biggest difference of all, is I won’t be alone. I’ll have help, just like every other time through the republic’s history.
Blacksmith8 on March 21, 2009 at 2:40 PM
So you can sell your souls to some Third World country and call it free trade?
sethstorm on March 21, 2009 at 2:56 PM
Only if you’re talking about the folks at AIG being the ones that particular amendment protects us from.
sethstorm on March 21, 2009 at 2:58 PM
Wheres the freaking outrage over how AIG conducted business? Gonna blame the Democrats for that one too? People are mad at Wall Street, not the Dems in congress.
athensboy on March 21, 2009 at 3:10 PM
Wall Street only wants to fire back and they got the ear of some two-bit bloggers.
sethstorm on March 21, 2009 at 3:12 PM
The MSM has created the smokescreen for Obama and the Dems. The real outrage is against all Congress such as Dodd, Frank, Rangel who would not allow the stupid loans to stop, rewarded the executives of Fannie Mae and Freddie Mac with bonuses (some of which are still coming due), and try to sit on their judgment seats pointing the finger at AIG. Anything to take our eye off of them and TOTUS!
Dodd has lost support in his own state, that Fox reported it as Dodd Man Walking. Amen! He should be in jail.
Christian Conservative on March 21, 2009 at 3:39 PM
Thank you, Senator Kyl!
This is getting out of control–look at the post about the mobs being bussed out to AIG execs homes.
Somebody is going to get hurt, and the Dems will have to accept blame.
PattyJ on March 21, 2009 at 4:33 PM
It’s ONLY unconstitutional but hey, who in Washington is abiding by the Constitution anymore? The whole damned Government is illegitimate.
nelsonknows on March 21, 2009 at 5:45 PM
if this is not stopped one of these days there might be an angry mob find the real people behind the real scandal
wade underhile on March 21, 2009 at 6:16 PM
…and a military that does follow orders to quiet that mob, by the same rules enacted in 2000-2008.
sethstorm on March 21, 2009 at 10:25 PM
Yes, I noticed the placards too, all produced by machine, not by protestors. The genuises in the media missed that–or didn’t care that it was organized, probably by the same people taking buses out to executives’ homes this weekend.
PattyJ on March 22, 2009 at 12:28 AM
Pelosi, Rangel, Dodd, Obama, Geithner, Summers all need this populist outrage to cover their butts in hiding their playing footsie with AIG. (Also assorted tax problems, too many to mention here)
Herb on March 22, 2009 at 12:53 PM
The wall of cynicism exhibited here has been built up over many years and is an imposing structure. I wonder if and when we ever get an honest public servant in the white house again, will we be willing to demolish that wall or at least reduce it to a fence that we can climb over every now and then. I think it’s important to us, as a nation, to have the capacity to trust our leaders. It is entirely their fault that we don’t.
All this posturing over nothing (AIG bonuses) just adds more brick and mortar.
SKYFOX on March 23, 2009 at 5:01 AM
I stand by this. Most people I run across are outraged at these skunks who take millions off the top of money often paid in 10 and 20 dollar increments for insurance policies that may not be underwritten because of their abuse. These trustees of insurance policies had no trouble trading security for ungody derivatives
Bankers and mortgage holders have no trouble scaring the kids when they take homes and destroy lives, and not every mortgage was written for greedy people living over their means but many many were conned into signing refinance balloons by bankers who wanted a steady turnover in refi to boost the flow of fees and keep up their numbers
Personally I think it is better to have orderly fist shakers than what could be coming down the road if the larger group of people who feel victimized blow under pressure as the bad economy sinks further
Nothing else so far has worked to make these crooks straighten out and realize the precariousness of their positions. Ultimately it was taxpayer money that got grabbed and they were the grabbers. They do not deserve to be shielded from public expression, which from what I could see, was a lot less than they earned
entagor on March 23, 2009 at 12:36 PM
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