Tim Geithner and Chris Dodd should either resign or be removed.
So much for the new age of transparency and change and while I am not going to blame Obama for this AIG mess - it's happening on his watch and he is the big boss.
It has now become rather clear that Geithner and Dodd who once claimed they knew nothing about AIG bonus payouts are coming clean. Looks like Dodd's amendment in the massive 787 billion stimulus bill contained language that opened the door for these bonuses to be paid out and since Geithner is writing the check he is responsible.
Dodd's language specifically protected contracts before a certain date and it seems incredibly ironic and might I say stupid that a bill was passed today to tax the living hell out of these very same bonuses they allowed in the first place!
The entire concept of taxing 90% of these bonuses is ludicrous at it's face and today they passed legislation that is allowing just that. While AIG's executives most certainly do NOT deserve bonuses and frankly should be ashamed for taking money after sinking an entire company, letting our congress impose such harsh restrictions on ANY company receiving bonuses is a slippery slope at best.
First, there is always a constitutional matter, can congress really hone in on a specific group (in this case, executives of bailout companies) and levy special taxes on this little group? Secondly, what will happen to these companies if the incentives are now all sapped? Executives and other talented people will simply leave these institutions and what once used to be massive corporations will become government owned shells mired in corruption and waste.
Obviously the situation has become extremely messy, scary and frustrating. Still, in order to revitalize some semblance of public trust, the specific individuals that allowed these bonuses to be paid out and whose action caused the bill of taxing bonuses 90% to be passed - MUST RESIGN!
It has now become rather clear that Geithner and Dodd who once claimed they knew nothing about AIG bonus payouts are coming clean. Looks like Dodd's amendment in the massive 787 billion stimulus bill contained language that opened the door for these bonuses to be paid out and since Geithner is writing the check he is responsible.
Dodd's language specifically protected contracts before a certain date and it seems incredibly ironic and might I say stupid that a bill was passed today to tax the living hell out of these very same bonuses they allowed in the first place!
The entire concept of taxing 90% of these bonuses is ludicrous at it's face and today they passed legislation that is allowing just that. While AIG's executives most certainly do NOT deserve bonuses and frankly should be ashamed for taking money after sinking an entire company, letting our congress impose such harsh restrictions on ANY company receiving bonuses is a slippery slope at best.
First, there is always a constitutional matter, can congress really hone in on a specific group (in this case, executives of bailout companies) and levy special taxes on this little group? Secondly, what will happen to these companies if the incentives are now all sapped? Executives and other talented people will simply leave these institutions and what once used to be massive corporations will become government owned shells mired in corruption and waste.
Obviously the situation has become extremely messy, scary and frustrating. Still, in order to revitalize some semblance of public trust, the specific individuals that allowed these bonuses to be paid out and whose action caused the bill of taxing bonuses 90% to be passed - MUST RESIGN!
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