Spring Break
Bailout abuse shows need for immediate, real change
Sean Reed
Issue date: 3/23/09 Section: Opinion
In the wake of increasing dissatisfaction with corporate executives for paying themselves millions of dollars in bonuses as their companies receive billions in stimulus money, some folks are taking their frustration to the streets.
On Saturday, The New York Times reported that a motley crew of protestors that included a pastor, an out-of-work steelworker and about 40 others participated in what they called the "Lifestyles of the Rich and Infamous" bus tour, a day long protest meant to bring the outcry over corporate bonuses to the doors of executives.
The trip, sponsored by a Connecticut labor and community group, took participants to two Fairfax, Conn. homes of Douglas Poling and James Haas, both executives for the American International Group. The protestors, greeted by security guards, assembled peaceably and read aloud a letter condemning the recent announcement of the payout of $165 million in bonuses to AIG executives before depositing it in the executives' respective mailboxes and adjourning.
This protest, however, was just a small part of the fallout from the multimillion-dollar AIG bonuses.
This move comes after several bailout payments from the federal government to improve the health of the company to the tune of $150 billion total, according to The New York Times.
As could be expected, criticism has come out on all fronts against the company, overtaking the opinion pages of local papers all the way up to the president's offices. But we need more than empty words and individual reprimands to solve this problem.
This is a systemic problem that requires a systemic solution. And fortunately, some are already in the works. The downside is they may not be enough.
While the original stimulus bill passed under former President George W. Bush was mostly hands-off in terms of what was and was not considered an acceptable use of funds, and the more recent bill lacked on the same token, there are options.
Just last week, a bill was proposed in the House to tax bonuses given by bailed out companies to its executives. Naturally, some -- mostly Republicans -- are not big fans, but really, they should reconsider.
On Saturday, The New York Times reported that a motley crew of protestors that included a pastor, an out-of-work steelworker and about 40 others participated in what they called the "Lifestyles of the Rich and Infamous" bus tour, a day long protest meant to bring the outcry over corporate bonuses to the doors of executives.
The trip, sponsored by a Connecticut labor and community group, took participants to two Fairfax, Conn. homes of Douglas Poling and James Haas, both executives for the American International Group. The protestors, greeted by security guards, assembled peaceably and read aloud a letter condemning the recent announcement of the payout of $165 million in bonuses to AIG executives before depositing it in the executives' respective mailboxes and adjourning.
This protest, however, was just a small part of the fallout from the multimillion-dollar AIG bonuses.
This move comes after several bailout payments from the federal government to improve the health of the company to the tune of $150 billion total, according to The New York Times.
As could be expected, criticism has come out on all fronts against the company, overtaking the opinion pages of local papers all the way up to the president's offices. But we need more than empty words and individual reprimands to solve this problem.
This is a systemic problem that requires a systemic solution. And fortunately, some are already in the works. The downside is they may not be enough.
While the original stimulus bill passed under former President George W. Bush was mostly hands-off in terms of what was and was not considered an acceptable use of funds, and the more recent bill lacked on the same token, there are options.
Just last week, a bill was proposed in the House to tax bonuses given by bailed out companies to its executives. Naturally, some -- mostly Republicans -- are not big fans, but really, they should reconsider.
Viewing Comments 1 - 4 of 5
Bdygard
Craig Hawley
posted 3/22/09 @ 11:39 PM MST
I thought Obama was going to bring immediate and real change.
The only change we need is to IMPEACH this putz while we still have a country.
Registered Independent
posted 3/24/09 @ 12:27 PM MST
Ah, Mr. Reed?
It was Democratic Senator Christopher Dodd who inserted the specific provisions into the bailout bill, that allowed AIG to pay out these bonuses. (Continued…)
Registered Independent
posted 3/25/09 @ 11:36 AM MST
P.S. I forgot to mention the fact that Democratic Senator Christopher Dodd (from Connecticut) just happened to be the largest recipient of AIG's campaign contributions, in the country. (Continued…)
Arvensis
posted 3/25/09 @ 6:13 PM MST
Great break down RegIndy, but aren't you forgetting to mention that ALL federal income tax is illegal? :)
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