Frank assails bonuses paid to executives at AIG
WASHINGTON – Rep. Barney Frank charged Monday that a decision by financially strapped insurance giant AIG to pay millions in executive bonuses amounts to “rewarding incompetence.”
It’s currently popular to deride AIG. Yes, they needed bailouts in 2009 — and even some in 2008 — but the pay of these executives is actually built into the bonuses they are getting. Since when does Barney Frank get to set salaries of an insurance company? Yes, he was dumb enough to bail them out, but now he must eat his words. He as much as called AIG a hypocrite, but he is an even bigger one.
Afterall, wasn’t it Frank and Chuck Schumer and Chris Dodd that got all that money for Fanny and Freddie so they could sanction house loans on people who couldn’t afford a house? Yes, it was. Barney, Chuck, and Chris caused the housing meltdown, but they don’t mind criticizing an insurance company. The Angst Blogger is not saying it’s right to get bonuses for incompetence, but he is saying that Barney saw this coming. Why did he vote bailouts for incompetent companies. My view now and then is “let them fail.” So what if they were a bank as well as an insurance company. No one is “too large to fail.” That was that trio’s sentiments when they bailed them out for the tenth time. These bailouts were wrong and they continue to be wrong.
Now we’ve got Fed Reserve Chairman Bernanke saying the recession is almost over, and do you know what? All that money given — and I emphasize the word “given” because none will come back into our treasuries — hasn’t had time to filter down and stop any recession. Recessions are not government solved, only government-driven. Like throwing gasoline on a fire, it makes it bigger.
That’s what they money has done. But, good. If it’s going to be over this year, fine. But the hypocritical Barney Frank should shut his mouth when it comes to AIG. He got into bed with them when he funded their stupidity the first time and each time thereafter and forefeited his right to be critical of anything connected to this debacle.
In fact, the Angst Blogger is outraged. He calls for Barney Frank to retire in disgrace immediately! That’s why he’s feigning outrage, himself. To cover his own incompetence and fraudulent behavior.
Echoing outrage expressed on both sides of the political aisle in the wake of revelations thatwill pay roughly $165 million in bonuses, Frank said he believes it’s time to shake up the company.
“These people may have a right to their bonuses. They don’t have a right to their jobs forever,” said Frank, a Massachusetts Democrat who is chairman of the House Financial Services Committee.
Appearing on NBC’s “Today” show, Frank noted that the Federal Reserve Board, using a Depression-era statute, was the institution that gave AIG its initial government bailout, before Congress passed legislation providing for additional assistance. He said he did not think sufficient safeguards were built into that initial bailout by the Fed. Sure, Barney, blame the Fed, when you, yourself, didn’t build in any safeguards.