“We had to step in, it was the right thing to do, even though it is infuriating,” Obama said, explaining why the government needed to bail out the troubled banks.
“The same is true with AIG,” he said. “It was the right thing to do to step in. Here’s the problem. It’s almost like they’ve got — they’ve got a bomb strapped to them and they’ve got their hand on the trigger. You don’t want them to blow up. But you’ve got to kind of talk them, ease that finger off the trigger.”
"They should voluntarily return them. If they don't, we plan to tax virtually all of it," New York Sen. Chuck Schumer declared on the Senate floor.
"To those of you getting these bonuses: be forewarned, you will not be getting to keep them."
Cuomo, in a letter to Congress, said he had learned that 11 AIG executives who got retention bonuses of over $1 million no longer even work there.
In total, Cuomo said, the top 10 bonus recipients at AIG shared a combined $22 million, 73 got more than $1 million and the most handsomely paid got a whopping $6.4 million.
Schumer called it "Alice in Wonderland business practices" to give bonuses to executives at a firm that lost nearly $100 billion last year and had to be rescued with $170 billion in taxpayer money.
"It boggles the mind," he said.
Isn't Schumer adorable when he gets all outraged?
So answer me this, because I feel like am missing something here : Where was he when TARP was being written up? What exactly did he do to ensure that the books of these financial institutions saw the day light and came under the scrutiny needed to prevent this kind of chicanery?
And for that matter, where was he along with the whole NY State Congressional delegation all these years? What were they doing to make sure Wall Street was accountable for their gains in good times and in bad?
This is not a rhetorical question. You guys know more about the trappings of the NY politicosphere way more than I do. Was he really a crusader? read more »
This comes from Democracy for NYC:
Did You Get a RoboCall from an Insurance Co. Against Obama Healthcare Reforms?
President-Elect Obama has said that he wants to end the $11 billion corporate welfare subsidy - passed by the Bush Administration - to private companies that provide Medicare through Medicare Advantage. These companies cherry-pick the best patients and have been making record profits. While Medicare Advantage was designed to reduce costs through competition, this has not worked; a Georgetown University study found the cost to taxpayers of treating patients through this program increased in 2007.
Join us at Linkup [tonight] (Wed) to discuss this and other healthcare reforms being proposed in Washington this year...
Robocalls: read more »
Sometimes I like giving people good or bad info about individual companies. I have been meaning to give some heads up about a few good and bad companies for some time and now, as I just had a good experience with a plumber right here in NYC (after many years of bad experiences) I think it is time to pass on some advice.
EARTHLINK: read more »
Albany's Times-Union has a really good article on how Verizon is trying to get away with defrauding the state of million dollars in emergency government subsidies it should not have collected from the government after 9/11.
Auditors found that Verizon failed to tell the federal government just how much a private insurance settlement paid the company for its emergency 9/11 repairs.
Claims already covered by insurance and non-emergency repairs that didn't qualify for full reimbursement weren't all that state auditors questioned. They also disallowed almost $21 million in expensed straight time pay for employees and about $35 million for other costs that did not meet audit evidence standards.
In all, Verizon claimed more than $230 million more than the plan allowed and, as a result, collected almost $39 million more than it was entitled for emergency repairs, auditors concluded.
The auditors' report also said Verizon delayed or tried to obstruct the audit team's effort to document Verizon's claims. "As the audit progressed, we encountered serious difficulties in obtaining information from Verizon on such key items as labor and insurance proceeds. During the course of the audit, the latter issue developed into the single most significant topic," the auditors wrote in their report.
It would take over a year for the auditors to obtain documentation of Verizon's $825 million insurance settlement for all its 9/11 damages, according to the audit report.
Schumer, who worked to bring federal aid to New York City after 9/11, had no immediate comment on the audit.
The audit report comes at a time when Verizon Chief Executive Ivan G. Seidenberg is being scrutinized by shareholder activists focusing on excessive payments to executives.
I guess Verizon needs all that extra money to pay it's lobbyists so they can give it back to their favorite porkers on Capitol Hill.