Originally Posted by Jae Onasi
I'm really ticked off about my tax dollars being used for the executives' exorbitant salaries, and Congress not thinking ahead to put more strings on the money so this couldn't be used that way. It would have been very easy for congress to stipulate what that money could and couldn't be used for.
Congress had to create a stimulus package in a manner that was not easy to iron out all the loopholes because the whole bailout in itself was never planned. The whole idea of congress stepping in because a private corporation was too massive to go bankrupt was only done under extraordinary circumstances.
There were measures taken to put a cap on how much an executive could earn if they received bailout money, (<$100,000) but AIG got away with it because that number didn't include bonuses in the original plan. That was absolutely outrageous of them because it wasn't just a display of their personal greed, but it created much more friction for a government and State who stepped in to deal with their mistakes.
Now the way to siphon the money they stole is to essentially change the law so that the government could take back what is rightfully AIG's funding. Legally, AIG could give its executives whatever bonuses they want; but it completely defiles the purpose of the government bailout funds. Now if the Government were to step in again, some might say they have gone too far as to take funds that legitimately belong to a corporation... where they got it wouldn't really factor in to a legal battle.
To sum up my feelings on this... the AIG executives who abused the aid they were given should rot in hell. Any future bailout by congress should have very ridged stipulations placed on all executives for ALL assets that were saved by taxpayer funds. If the government essentially rationed ALL executive's payments, then it could legally control any loopholes such as the bonuses. Once bailout money is accepted, all rights executives have to any earnings should be forfeit.
This way, any bailout plan could be established where the government would essentially have control over any assets in a legally-binding agreement. If any loopholes are found, they can be corrected BEFORE they are exploited by greedy execs.