Today's Article
The Senate GOP
appears set to kill any
serious attempt to
reclaim the bonuses
which AIG and other
'bailout' companies
are paying to their
executives.
appears set to kill any
serious attempt to
reclaim the bonuses
which AIG and other
'bailout' companies
are paying to their
executives.
The American Spark
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Will Senate Republicans Ever Reclaim 'Bailout' Bonuses?
By Cliff Montgomery - Mar. 25th, 2009
Senate Republicans appear set to effectively kill any reasonable attempt to reclaim the bonuses which
"bailout" companies like insurance giant American International Group (AIG) are paying to their executive
bosses.
This won't stop them from complaining about the questionable bonuses of course; these lawmakers just won't
lift a finger to actually fix the problem.
AIG doled out $165 million of taxpayer "bailout" dollars last weekend to several top executives, and has shelled
out similar bonuses this year. Americans of all stripes are rightly furious.
Top Democratic senators, being a rather weak-kneed bunch, have been trying to pass legislation that would
recoup most of those bonuses through taxation. It's not as clear-cut as simply threatening to sue AIG for a
possible misappropriation of public funds unless the execs gave back those bonuses with due haste, but it
appeared to be something.
Regardless, that something apparently is something too much for GOP senators.
Senator Jon Kyl (R-AZ) is the minority whip who Thursday evening blocked efforts to bring up the tax bill in the
Senate. The House had quickly passed its form of the legislation earlier that day--and nearly half of House
Republicans voted for the tax.
Kyl did his best to explain his inexplicable action.
"I don't believe that Congress should rush to pass yet another piece of hastily crafted legislation in this very
toxic atmosphere, at least without understanding the facts and the potential unintended consequences," Kyl
crowed on the floor of the Senate.
These words seem odd coming from Senator Kyl, since modern Republican leadership normally does not
follow a "go-it-slow," rational policy. For instance, the GOP couldn't have moved more quickly or have been
more irrational 8 years ago, when it gleefully repealed many of the laws which kept wealthy investors from
turning Wall Street into their private casino--at our expense.
The same is true regarding their actions on a host of other fiercely important matters, from the invasion of Iraq
to the Anti-Patriot Act. Only now, when it's time to hold a few wealthy members of society accountable for
thievery of public funds, do they want think long and hard on the matter, and then...think again.
A close look at Senator Kyl's wealthier supporters puts even more light on his particular stance.
It seems that the Arizona senator is especially well liked by Wall Street types. From 2003-2008-- the most
recent election cycle for senators--real estate investors were Kyl's second most loyal donors; securities and
investment firms were fifth, according to Federal Election Commission data.
Among single donors, one of Kyl's longtime friends has been AIG. The insurance giant has given the Arizona
senator over $24,000 during his years on Capitol Hill.
Another one of Kyl's corporate friends has been Citigroup, Inc. The firm donated over $36,000 to Senator Kyl
from 2003-2008, states Federal Election Commission data.
Like AIG, it is one of the giant Wall Street firms which recently received billions of taxpayer dollars to remain
afloat.
One of this financial giant's subsidiaries is the brokerage firm Salomon Smith Barney, "which has been plagued
with lawsuits and government investigations into its financing of bankrupt Enron and ailing WorldCom," states
the Center for Responsive Politics (CRP), a leading government watchdog group.
"In 1998, Citigroup’s lobbying helped repeal a federal law that prevented banks from getting into other
businesses," continues CRP, "allowing the company to acquire an insurance firm and part of a package of lax
regulations that has been blamed for the country’s economic collapse."
Might these friendships have something to do with Senator Kyl's slow trot on executive accountability? Perish
the thought.
Like what you're reading so far? Then why not order a full year (52 issues) of the The American Spark e-
newsletter for only $15? A major article covering an story not being told in the Corporate Press will be
delivered to your email every Monday morning for a full year, for less than 30 cents an issue. Order Now!
By Cliff Montgomery - Mar. 25th, 2009
Senate Republicans appear set to effectively kill any reasonable attempt to reclaim the bonuses which
"bailout" companies like insurance giant American International Group (AIG) are paying to their executive
bosses.
This won't stop them from complaining about the questionable bonuses of course; these lawmakers just won't
lift a finger to actually fix the problem.
AIG doled out $165 million of taxpayer "bailout" dollars last weekend to several top executives, and has shelled
out similar bonuses this year. Americans of all stripes are rightly furious.
Top Democratic senators, being a rather weak-kneed bunch, have been trying to pass legislation that would
recoup most of those bonuses through taxation. It's not as clear-cut as simply threatening to sue AIG for a
possible misappropriation of public funds unless the execs gave back those bonuses with due haste, but it
appeared to be something.
Regardless, that something apparently is something too much for GOP senators.
Senator Jon Kyl (R-AZ) is the minority whip who Thursday evening blocked efforts to bring up the tax bill in the
Senate. The House had quickly passed its form of the legislation earlier that day--and nearly half of House
Republicans voted for the tax.
Kyl did his best to explain his inexplicable action.
"I don't believe that Congress should rush to pass yet another piece of hastily crafted legislation in this very
toxic atmosphere, at least without understanding the facts and the potential unintended consequences," Kyl
crowed on the floor of the Senate.
These words seem odd coming from Senator Kyl, since modern Republican leadership normally does not
follow a "go-it-slow," rational policy. For instance, the GOP couldn't have moved more quickly or have been
more irrational 8 years ago, when it gleefully repealed many of the laws which kept wealthy investors from
turning Wall Street into their private casino--at our expense.
The same is true regarding their actions on a host of other fiercely important matters, from the invasion of Iraq
to the Anti-Patriot Act. Only now, when it's time to hold a few wealthy members of society accountable for
thievery of public funds, do they want think long and hard on the matter, and then...think again.
A close look at Senator Kyl's wealthier supporters puts even more light on his particular stance.
It seems that the Arizona senator is especially well liked by Wall Street types. From 2003-2008-- the most
recent election cycle for senators--real estate investors were Kyl's second most loyal donors; securities and
investment firms were fifth, according to Federal Election Commission data.
Among single donors, one of Kyl's longtime friends has been AIG. The insurance giant has given the Arizona
senator over $24,000 during his years on Capitol Hill.
Another one of Kyl's corporate friends has been Citigroup, Inc. The firm donated over $36,000 to Senator Kyl
from 2003-2008, states Federal Election Commission data.
Like AIG, it is one of the giant Wall Street firms which recently received billions of taxpayer dollars to remain
afloat.
One of this financial giant's subsidiaries is the brokerage firm Salomon Smith Barney, "which has been plagued
with lawsuits and government investigations into its financing of bankrupt Enron and ailing WorldCom," states
the Center for Responsive Politics (CRP), a leading government watchdog group.
"In 1998, Citigroup’s lobbying helped repeal a federal law that prevented banks from getting into other
businesses," continues CRP, "allowing the company to acquire an insurance firm and part of a package of lax
regulations that has been blamed for the country’s economic collapse."
Might these friendships have something to do with Senator Kyl's slow trot on executive accountability? Perish
the thought.
Like what you're reading so far? Then why not order a full year (52 issues) of the The American Spark e-
newsletter for only $15? A major article covering an story not being told in the Corporate Press will be
delivered to your email every Monday morning for a full year, for less than 30 cents an issue. Order Now!
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