Ok, AIG is saying "we had to pay". Real simple, I would like someone to file a Freedom of Information Act request for the underlying contracts. Since this is a publicly funded endeavor, we should have a right to see these "ironclad" bonus contracts.
Any bets how long the "intellectual property" of DKos would take to write the court brief asking for the bonuses to be thrown out? My over under is 12 hours.
So, I think it is real simple - you want to pay, show us the contracts. We are the majority shareholder - come on Congress, show us the body.
More below:
The Obama administration came to pass on the themes of change and transparency. Ok, Sec. Geithner - we are willing to pony up the bonuses if an open review of the contract language by the people leads to consensus here. All we are asking for is transparency in government spending - hell, the Republicans should support this request.
Rep Frank, call a committee hearing where the first order of business is recording the contracts into the public record as Exhibit A - no wrist slap, no bad boys. They say these contracts are ironclad - show me.
Been on Wall Street, watched the stress over bonuses - all the way to the top - if "we don't make the numbers". Ironclad bonus contracts were for the first year of an employee raid. These guys had been there a while - this is smoke and mirrors.
So, I say again, show me the body. Then I may slink back to my hole but I'm betting sunshine on this will not be a pretty picture.
UPDATE
Everyone refers to the "this could be the first domino" theory of defaults. Well, here is the pertintent language in an ISDA Agreement on the web here
a) Events of Default. The occurrence at any time with respect to a party or, if applicable, any Credit Support Provider of such party or any Specified Entity of such party of any of the following events constitutes an event of default (an "Event of Default") with respect to such party:-
(ii) Breach of Agreement. Failure by the party to comply with or perform any agreement or obligation (other than an obligation to make any payment under this Agreement or delivery under Section 2(a)(i) or 2(e) or to give notice of a Termination Event or any agreement or obligation under Section 4(a)(i), 4(a)(iii) or 4(d)) to be complied with or performed by the party in accordance with this Agreement if such failure is not remedied on or before the thirtieth day after notice of such failure is given to the party;
Early Termination
(a) Right to Terminate Following Event of Default. If at any time an Event of Default with respect to a party (the "Defaulting Party") has occurred and is then continuing, the other party (the "Non-defaulting Party") may, by not more than 20 days notice to the Defaulting Party specifying the relevant Event of Default, designate a day not earlier than the day such notice is effective as an Early Termination Date in respect of all outstanding (my emphasis)
Yes, the other side has the option to default - but is someone going to voluntarily throw AIG under the bus for these guys, NFW.
Kill that line of argumnt NOW.