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Obama Tries to Stop AIG Bonuses

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SixDegrees3/16/2009 1:05:15 pm PDT

He can vow all he wants, but I don’t think Barry is gonna have much luck getting the bonuses rescinded. They were negotiated long before AIG ran into trouble and long before the government came on board, and are legally binding contracts between the company and it’s employees. Unless he can find some legal leverage to use against the contracts themselves, he’s tilting at windmills.

I’m sure GM would love to negate it’s retirement benefits for it’s huge pile of retirees, too. But that’s not gonna happen, either, unless a court does it for them during bankruptcy proceedings, the consequences of which for the company are far worse than any savings.

All Barry’s gonna do is rack up additional legal costs, courts costs and penalties, both on the government’s behalf while filing against AIG, and ultimately on AIG’s behalf while AIG is under government stewardship. I’m sure there are a horde or two of yapping morons cheering him on, but this idea goes straight to the heart of the Rule of Law and rips it out of society’s chest. It’s profoundly dangerous.

Or just stupid. The most likely result is the courts telling Barry to shove it.