The Difference Between AIG and GM

16 03 2009

GM and the UAW were forced to renegotiate contracts, but AIG is bound by the letter of the law to pay bonuses to the geniuses who got us in this mess.  To quote Jon Stewart…”FUCK YOU!”

Washington and the nation are enraged that AIG is paying millions in bonuses to retain financial wizards that sold insurance on mortgage backed securities with few assets to back up their promises.

AIG is telling us that it must pay those bonuses, because they are required by employment contracts necessary to retain its financial engineers.

Treasury Secretary Geithner has expressed outrage. Instead, he should be embarrassed.

When the Bush White House agreed to bail out General Motors and Chrysler, it required those companies to renegotiate their labor contracts—that’s right contracts—and they are doing just that to keep their federal largess.

The Obama Treasury, headed by Tim Geithner, is forcing the terms of that deal on the United Autoworkers.

Why did Secretaries Paulson and Geithner not require the same at AIG? Remember Geithner was president of the New York Federal Reserve Bank and a key player when financial giants like Citigroup and AIG were being bailed with the taxpayers’ cash. Those bailouts continue, with easy terms for the bankers and their contracts, on Geithner’s watch.

The threat was the same with AIG and GM. If either shut down, the economy would plummet into chaos and depression we were told.

So Mr. Geithner, instead of being outraged at AIG’s last revelations, perhaps you can explain to all of us why a UAW worker earning $29 dollars an hour must give back wages and benefits to keep their company alive, while the architects of the biggest financial disaster in history get to keep their gold plated contracts.

Mr. Geithner, we are waiting for your answer.

The all new Gitmo weight room is the only bonus AIG executives deserve

The all new Gitmo weight room is the only bonus AIG executives deserve

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2 responses

16 03 2009
Disgusted

I’m so pissed at Geithner and this “free market” mentality bullshit. And Obama who was willing to listen to and employ this man. Who’s free market is it? People like CEO’s and CFO’s that run companies in the ground to walk away with bonuses paid by those who were laid off, fired, or who’s entire life savings were wiped out. They should have failed. The smaller banking institutes who were wiser should have been the only ones to find protection. Places that don’t spend millions wining and dining their execs.

I feel for GM workers, but I guarantee you that their executives aren’t suffering. Did they(execs) have to give up a bonus, sure? But they pay a lot of do nothing execs and have laid off a lot of employees who are doing the real work. And they are demanding more from those who are left, while giving them smaller salaries. Ask how many execs took pay cuts.
They also hold to ancient business practices which will not change unless the mindset of these American automakers change. This I know…..

17 03 2009
Chris

There are quite a few cabinet posts I am pissed at Obama for. This is definitely one of them. Others include Hillary and Robert Gates.

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