AIG Open Thread

There is so much shit going on re: the AIG bonuses business that I don't even know where to begin, so here's a few links of recommended reading that paint the picture of how wildly out of control this situation is spinning in multiple ways, and then I'll just open it up for discussion:

WaPo: Anger Over Firm Depletes Obama's Political Capital—"President Obama's apparent inability to block executive bonuses at insurance giant AIG has dealt a sharp blow to his young administration and is threatening to derail both public and congressional support for his ambitious political agenda."

Tomasky: When Obama's Cool Isn't Cool—"Obama yesterday morning announced he was instructing Geithner to find a way for the government to stop the bonus payments. But why did it take a firestorm that couldn't have been very difficult to predict for Obama to take this step? Here's the downside of Obama's famous cool. Most of the time, it's good to have a president who isn't a captive of his emotional temperature and doesn't say rash things. Americans got pretty tired of that over the last eight years. But sometimes, geez, you just want the guy to let it out. Yesterday's press conference was about as close as he came to anger, but it wasn't close enough."

WaPo: Rage at AIG Swells As Bonuses Go Out—"A tidal wave of public outrage over bonus payments swamped American International Group yesterday. Hired guards stood watch outside the suburban Connecticut offices of AIG Financial Products, the division whose exotic derivatives brought the insurance giant to the brink of collapse last year. Inside, death threats and angry letters flooded e-mail inboxes. Irate callers lit up the phone lines. Senior managers submitted their resignations. Some employees didn't show up at all."

AP: Cuomo to Probe AIG Bonuses for Possible Fraud—"New York Attorney General Andrew Cuomo said Monday he has issued subpoenas for the names of American International Group employees given millions of dollars in bonuses despite their possible roles in the insurance giant's near-collapse. Cuomo said his office will investigate whether the $165 million in payments are fraudulent under state law because they were promised when the company knew it wouldn't have the money to cover them."

AP: Grassley Suggests AIG Execs Should Kill Themselves—"[Republican Senator Sen. Charles Grassley]'s harsh comments came during an interview with Cedar Rapids, Iowa, radio station WMT on Monday. They echo remarks he has made in the past about corporate executives and public apologies, but went further in suggesting suicide. 'I suggest, you know, obviously, maybe they ought to be removed,' Grassley said. 'But I would suggest the first thing that would make me feel a little bit better toward them if they'd follow the Japanese example and come before the American people and take that deep bow and say, I'm sorry, and then either do one of two things: resign or go commit suicide. And in the case of the Japanese, they usually commit suicide before they make any apology.'"

CNN: Dodd Suggests Tax to Recoup AIG Bonuses—"Sen. Christopher Dodd on Monday suggested a tax provision to recoup the bonuses for executives of ailing insurance giant AIG. Dodd, D-Connecticut, said the notion is in the 'earliest of thinking' and has not been settled on as a way to resolve the issue, which has set off outrage in Washington and across the country."

USA Today: Critics Blast AIG as Flap Escalates Over Bonuses—"President Obama latched on to the latest round of populist anger over corporate greed Monday, ordering his Treasury secretary to 'pursue every legal avenue' to stop insurance giant AIG from giving $165 million in bonuses to some of the executives who drove the company into financial ruin before it was rescued by a government bailout."

Please feel welcome to leave in comments links to stuff you're reading on this subject.