
GAO:
The U.S. Treasury should demand that American International Group Inc., the insurer rescued by taxpayers, seek concessions from employees, creditors and derivatives counterparties* as a condition of its aid, the Government Accountability Office said.
“Treasury could require that AIG seek to renegotiate contracts with its employees, similar to the contract for retention bonuses with AIG Financial Products’ employees, and with existing counterparties that would face substantial losses were AIG to have its credit downgraded or fail,” the GAO said.
“If such concessions are not considered to be in the government’s interest, the reasons should be clearly articulated and explained,” it said.
A group of 27 lawmakers last week called for a federal probe into whether AIG should have been forced to renegotiate its counterparty contracts with Goldman Sachs Group Inc. and other banks.
The U.S. has propped up New York-based AIG four times, with total aid now valued at $182.5 billion, since September after a cash shortage left the insurer unable to back up protection sold to banks on their fixed-income holdings.
You know, there are times when it seems that only the Obama adminitration doesn't get this.
Well, and the Republicans, of course, but we never had any hope for them.
The Obama administration shouldn't be asking union retirees to give up one fucking cent while all the gamblers on Wall Street getting their payouts one hundred cents on the dollar. It's unconsionable.
NOTE * When we the people bailed out AIG, AIG promptly turned around and paid what we gave them to its creditors -- the so-called "counterparties" who were gambling on derivatives contracts with AIG (who lost, thus having to pay out). And they paid out one hundred cents on the dollar. So, while contracts with banksters are sacred, contracts with unions are not. And while you can play in the Big Shitpile and expect to be paid in full, you can work for GM for thirty years and have your benefits cut -- even though you paid in every paycheck to get them.
Plus ça "change," plus c'est la même chose...
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BTW, some Repubs are doing a good imitation of "getting it," and
are using and will continue use populist arguments against Dems, especially those in Congress, whom they consider weaker than Obama. Right now. When Obama loses some poll points, he will be attacked by Repubs using populist arguments.
It's pretty scary to me to hear a Repub making arguments against Team Obama and Dem legislation which sounds, well, rational.
The arguments which, used rationally, should be every Dem pol's intellectual heritage, should be in every Dem's DNA, should be used to cement Dem gains. If Dems had WH leadership to do things FOR the people, not just use them to support Big Banksters, Dems would be on a glide path to reelection in 2010 and should be expecting gains. But, nooooo. We've got a leader of the party who seems at times to want to destroy the party.
Damn New Dems. Are they as bad as the Southern Dems were for FDR? I don't know that history well enough to say, but they seem to like being Repubs Lite.
What a mess.
Why, oh, why, oh, why-o, why does BO love St. Ronnie and the labor busting he rode forward on?
On "Sacrifice"
We here you loud and clear, Lambert:
This White House better learn to pick its fights better, or they could very easily lose huge chunks of labor for 2012. There are already Republicans, here, playing their faux-populist tunes by complaining about the double standard who are waiting to grab disenchanted manufacturing workers, and if they can't win them over, they are hoping to crush their spirits to the point of where they simply keep them apathetic and thus keep them from voting, altogether.
If the New Democrats want to keep showing that they believe these manufacturing workers are second-class workers, well, they can lose them and lose them, big. People think we're dumb, up here, and have nowhere else to go. This administration has far less political capital, up here, than they think they do...
But, we've always been at war with Eastasia...