Grassley: Suicide call was 'rhetoric'
In all the outrage over the bonuses paid to the American International Group executives who almost buried the company, the usually mild-mannered Senator Chuck Grassley went the furthest.
In a radio interview Monday, the Iowa Republican called on AIG executives to follow the Japanese approach toward accepting responsibility for the near collapse of the insurance giant, which has already cost taxpayers more than $170 billion in federal aid.
"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," Grassley said.
Today, Grassley is the one apologizing, sort of.
Asked about the suicide remark on MSNBC, he suggested that it was more of a rhetorical flourish. "You ought to be able to tell rhetoric when you hear it," he said.
Grassley said the point he was making is that he wants the AIG executives to show remorse and contrition for nearly bankrupting their company -- not to accept bonuses.
"I think taxpayers are entitled to that," he said.
Meanwhile, Senator Harry Reid, the top Democrat in the Senate, said today that he will pursue legislation to force the executives to pay back at least some of the $165 million in bonuses.
Congressional Democrats are crafting bills to tax up to 100 percent of bonuses awarded by companies rescued by taxpayer money.
Senator Richard Shelby, the top Republican on the Senate Banking Committee, criticized Treasury Secretary Timothy Geithner for not blocking the bonuses, saying that Geithner either knew or should have known about the payments bonuses.
"I don't know if he should resign over this," Shelby said, according to the Associated Press. "He works for the president of the United States. But I can tell you, this is just another example of where he seems to be out of the loop.
President Obama joined the outrage on Monday, ordering Geithner to pursue every legal avenue to block the payments. The administration is talking about using a pending $30 billion federal loan to recoup or block the bonuses.
Representative Darrell Issa, a California Republican, said today that top White House officials knew about the bonuses ahead of time.
"So they were aware they were going to be paid and it wasn’t until they were paid and the press got wind of it, and obviously made a weekend of it, that they suddenly were outraged,” he said on Fox Business Network.
UPDATE: New York Attorney General Andrew M. Cuomo said today that AIG paid retention bonuses last week of $1 million or more to 73 employees, including 11 who no longer work for the company. The biggest bonus was more than $6.4 million, and the top seven received more than $4 million each.
Contracts written last March guaranteed employees 100 percent of their 2007 bonus amounts for 2008, "despite obvious signs that 2008 performance would be disastrous in comparison to the year before," Cuomo said in a letter today to Representative Barney Frank, the Massachusetts Democrat who is chairman of the House Committee on Financial Services, the Associated Press reports.
Cuomo asked the panel to take up the issue at a hearing scheduled for Wednesday, when AIG's CEO, Edward Liddy, is scheduled to testify.
"AIG also claims that retention of individuals at Financial Products was vital to unwinding the subsidiary's business," Cuomo wrote. But AIG has been unwilling to provide their names, despite a subpoena, making it impossible to see if that's true, Cuomo said.
The AP says that Cuomo asserted that despite their contracts, Financial Products employees agreed to take 2009 salaries of $1 in exchange for receiving their retention bonus packages. He said the fact AIG could negotiate the terms of the payments "flies in the face of AIG's assertion" that it had no choice but to make the contractual bonus payments.
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Obviously Sen Grassley has not had to suffer through a suicide in the family. The hurt never goes away. Where is the honor in the act? It will haunt me for the rest of my life. Another example of thinking before one runs at the mouth.
I agree with Sen. Grassley, 100%. Why are we so uptight? These guys shamed themselves, their families, and their companies. They should off themselves.
Can someone please help me understand something? Since the gov't has invested more than 170 billion dollars at AIG out, isn't the gov't (or us the taxpayers) the actual owners of the company? If the government is the owner of the company can't they dictate the rules of the game?
Also my other question is: Aren't bonuses supposed to be tied to the financial performance of the company, or even your own performance within the company? You execute successful sales you get a bonus, fine I get that. That's how it is in most sales groups of companies. What kind of bonus is someone who lost 67.2 billion dollars in three months expecting ?
Suggesting suicide is definitely not the right thing, that is just wrong. But I don't have a problem at all with any of these guys resigning. It's really the right thing to do. They need to go.
Senator Grassley should not retract or apologize. He did give them the option of resigning as well as committing hari-kari. I think they should be made to work in soup kitchens for the rest of their lives.
These executives have done more damage to the United States than all the terrorists in the world combined, and they are so imbued with their entitlement mentalities that they are never, ever going to apologize to the rest of us and the world at large for what they have done.
From my understanding these are bonuses that were apart of a signed contract between AIG and that employee. As disgraceful as it may be for them to accept the bonus, it is their right by their signed contract to receive the monies they agreed upon with this signed contract.
Grassley is only slightly over the top here. In bankruptcy there would be no bonus liability that would ever be paid. I am confident that any fool who accepts these bonuses now will rue the day forevermore. Lets push this further and attack all of these area of inbred privilege that give the few an unfair advantage over the many. Short of revolt, hopefully this is the start of a populist uprising and fundamental restructuring of our priorities.
The simple fact is this:
If AIG wants to pay bonuses to it's top execs and the Administration doesn't like it, fine. Then don't give them any bailout monies. If they are in such dire straits that they need funds from the American people to survive, then they should know they can't afford to pay large sums of money to those who helped create the financial crisis. If their company fails as a result, so what? It's exactly that kind of bailout mentality that allows them to not have to worry about taking responsibility for their mismanagement, If I ran my finances that way, I'd be living in a box in the street!
if
If these AIG CEO had any integrity or morals thats exactly what they should do kill themselves or resign.Look at the hardship they caused to millions of Americans, some of them loosing everything witch resorted to committing suicide, I am not going to feel sorry about these CEO families,I hope they enjoy the money that they stole from the taxpayers
and members of Congress should go along with them! How about the tens of billions that have ended up in European banks via AIG??!! These bonuses are chump change relative to the 200 billion we'll spend on AIG before its done..Where is that going?? to other banks, financial instututions, many of them NOT IN THE US!! this bonus scandal is a smokescreen, look at the bigger picture..Chris Dodd put an exception for these bonuses into law...Dont buy into it..VOTE THEM ALL OUT!
Another stunning example of how our government is looking out for us. Members of the House and Congress pontificate daily about how smart they are, and how they are protecting us. They are so stupid!!!!!!!!!!! If they are so smart, why didn't they have the vision to stipulate none of OUR monies would be used for bonuses.
And we continue to releect these same idiots. While they are prolific in both parties, the most stupid of them all are Maxine Waters, Barney Frank, and Nancy Pelosi. ENOUGH ENOUGH ENOUGH.
here's the problem:
the American PEOPLE (under the prodding of Republicans) said they are against nationalization.
Now the American PEOPLE (under the prodding of Republicans) want action against bonuses.
Well, you can't have it both ways. Maybe they should stop listening to every slogan of the Republicans.
well, you can't have it both wauy
Dear Haunted,
There is no honour in suicide if it is done to escape from the stuggle of life.
However, suicide as a way of taking supreme responsibility is a different thing.
It is an act of great honour.
Don't confuse the two.
Why can't we just fire the banks...Fire the Fed (which is privately held) and the government take over the business of printing and dictating monetary policy?
I don't understand, how a privately held company (the Fed) owned by the very banks that got us in this mess, can bail themselves out, and we can't do anything to them...The government has no power over them what so ever...This is wrong, just insane to me.
Until this mess, I always thought the Fed was a government entity, boy was I stupid! Just like the United States Bank that ushered in the the Great Depression, these crooked bankers use names to make Americans think they are legitimate.
Why is the government constantly borrowing money, where we - the tax payers - are saddled with paying interest on that money, to give to the banks, that will be rewarded with the interest that we won't ever be able to pay back...This isn't even about the tail wagging the dog, this is just lunatic to me...Am I the only one who can see that this system is criminal?
Dear Haunted,
You are tying a national calamity to your private life. This is very common, the people are so self centered they based their decision entirely on their prvate interest alone
I don't remember the last time I agreed with a Republican! Too bad Grassley then called his comment "rhetorical"...Sorta like Michale Steele apologizing to Limbaugh after stating obvious facts.
Ready to give up
Actually, an interesting idea. I'd expand it though, and include Congress (w/their 20% approval rating). But then, we'd be out 500 or so 'representatives', and then may actually accomplish something as a nation
This is a timely example of how morality cannot be legislated, it must come from within. Whether in the case above, or in the examples of the "democracies" we try to implant; virtue is not an external force. The greed at AIG is a manifestation of social ills that are running rampant.
Its ironic, how our society follows every move of those who commit personal abuses against themselves (read : the whole Rhianna controversy), but the "boring" immoral acts that affect us on a global scale such as the one mentioned above are ignored.
I think I found myself in agreement with a Republican for once.
I agree with the Senator 100% as well. It was obviously rhetoric, and he does not expect nor want anyone to commit suicide. He was pointing out that they should be grossly ashamed of themselves, and that they have no honor.
This was not an insensitive remark about suicide victims/families, and he should not have to defend himself. His message is clear, and hopefully those who need to hear it will hear it. There should be no bonuses, and certainly not $165 of them.
Can I ask why we aren't asking the same of our representatives in the House and Senate, like Sen. Grassley? They have shamed themselves and this country over and over and now are looking to deflect. They need to say their sorry or jump off a bridge. AIG is a mess but who allowed the system to get out of control. Congress, the SEC, the Bush White House? He's on another self important, political rant in order to try and score some points. Come on... let's not be so blind as to his real objective in making such stupid statements. I don't know about you but I've come to expect this foolishness anymore and that is a sad statement.
I question the appropriate-ness of the comment, but we all need to remember one thing. EVERYONE, republican or democrat, average American on the street or Administration Official, everyone is outraged about this. Pointing fingers across party lines is NOT going to solve anything, and republicans need to start remembering that!
I agree, a thorough accounting, by name at AIG, is needed. So let's stop with the name calling, the political stabbing, and team up ACROSS party lines, and get to the heart of the matter...accountability for every bonus paid, period. Stay focussed
Oh, fugod sakes.
boston.com didn't help and I can't believe you would write a headline that implies that Graessle meant what he said literally.
Just another example of our govt screwing up. They rushed out the door with a no-strings attached bailout of AIG, Barney Frank are you listening? And now complain about the result. How about, here's your money, 0 for bonus or we take it ALL back? Its simple enough.
We are in so much trouble in this country. And all you people can do is talk about things that don't matter. You people are going to awaken on a morning in the not to distant future, and have no country to live in. The government is being screwed up by the nutty people and none of can see it. Well, I guess when an angry mob takes over the USA at least you can someone told you. Don;t look out your window, but the mob is coming down your street.
This is no the change people voted for.
I think a few people said it best here that we really need to monitor our representatives and vote them out of office if they keep up their incompetence. So start keeping tabs on your representatives (there are various websites that can track stuff they are voting on for you).
These people in congress created the legislation that allows companies like AIG to pull off stunts like this. And i bet 90% of them (being generous) didn't even READ the legislation before they voted on it. Congress is a dog and pony show, and its the people at the end of the day who end up getting screwed and picking up the bill. Below are 2 web sites that allows you to monitor you representatives:
www.opencongress.org
www.govtrack.us
If the AIG bonus-eaters kill themselves, they'll be no one left to blame. Sen. Grassley just shows how desperately we need a scapegoat for the current bad times. Sure these guys helped get us into the mess and taking gov't charity to pay themselves a bonus is galling hutzpah, but these guys alone did not create the crisis and turning them into Bill Buckner doesn't really change though it is nice to have someone its safe to scream at
The only mistake Senator Grassley made was in expecting AIG higher-ups to behave in a manner suiting people of honor.
Don't any of you know that NOTHING will be done about this, other then the usual yada-yada-yada given these things by the government?
The whole bunch we have in Washington are just as guilty about any of this as are the exec's at AIG. These large companies are all (susposed to be) monitored by the government in the form of audits and inspections.
Use your heads people, the whole bunch up there should commit hari-kari. Maybe then we could get some new blood in there.
Chuck
Did the government have a signed contract with AIG stipulating how to spend this money ? If there is such a contract what is the problem ? If there is none (why in the hell wasn't there) then it is none of the government's damn business what AIG does with the money. If the government is that short sighted, they are the ones that should commit suicide. What is wrong with this stupid government ? Doesn't matter a bit who did what. The milk is already spilled. This is a contractual nation. I would not let a gardener in my yard without a signed contract. Too damned many crooked lawyers out there. CYA for both of us. What was Pelosi and company (been in charge for 3 years, right ?) doing while all this money was flying around ? I hear congress is above padding their own pockets. Yeah right, and if you put lip stick on a piece of pork then it is no longer pork, is it ?
I recommend we get the name of every one who got an AIG bonus. Then, offer them two options: give it back, or have your name released to the public.
I'm wondering how many innocent people have killed themselves because they just could'nt go on living like this, having everything taken from them. Their lives litterally destoyed at the hands of these wealthy executives. I hope there families have to indure the struggles they caused so many innocents, those dirty bastards. Release there names and publish them in papers all around the country. And put there home addresses too!
Sen Grassley and the government should supply the swords!
The incompetence that is the US Senate has once again shown the American people what they are truly made of...
Too bad we can only fire every 4 years
Remember, this is America. Honor has no place beside greed.
If they mean "Sales Commission" when they say "Bonus", I can understand this being a little more debatable. If the sales force works on commission, and they sold these "Swap Notes" for revenue, per direction from AIG management, perhaps they are entitled to be paid a commission on the sales (even if they should have used better judgment and walked). I just wish I could find a source that elaborated on the meaning of "Bonuses". In my book, a "Bonus" is discretionary compensation based first on company performance and then on individual performance, that in this case is obviously in no way justified.
The sales team screwed up, and AIG management screwed up, and for some mysterious reason management is obligated to give them "Bonuses". Then the gov't bails them out, but the gov't screws up and puts no stipulations on how AIG uses the Billions in bailout money. Then the media raises hell over this matter, but never bothers to investigate and report on the specific terms of this purported "obligation" or if the term "bonus" may mean something more than discretionary compensation.
I hear alot of rhetoric in this whole issue, and until the gov't and the media start explaining the situation more clearly I find their actions just as unnacceptable as AIGs.
Such compassionate liberals.
(another myth busted)
As a lifelong Republican, I hate to have to criticize a Republican, but I think Sen. Grassley's comments were both irresponsible and short-sighted. Not only is it morally wrong for anyone (especially a US Senator) to suggest that someone commit suicide, but when Sen. Grassley is someday embroiled in his own public scandal (since it seems to happen to every politician at some point), will he subject himself to the same choice of fates?
I honestly think the world needs to lighten up and stop looking into someone's words for ANYTHING that they can blow out of proportion. Let the man speak his mind without having to apologize for something ridiculous. This is like the lady suing McDonalds for hot coffee and winning....plain ridiculous!
1. Let's have those executives NAMED, so the media can hound the heck out of them and their families.
2. It is clear that the executives were being incentivized for performance related to some goal associated with transactions, rather then for the stability and security of the company.
3. The Board of Directors or CEO should simply not pay them. It would be breach of contract, but then let's see how they fare in the law suit they would have to bring.
As a lifelong Republican, I hate to have to criticize a Republican, but I think Sen. Grassley's comments were both irresponsible and short-sighted. Not only is it morally wrong for anyone (especially a US Senator) to suggest that someone commit suicide, but when Sen. Grassley is someday embroiled in his own public scandal (since it seems to happen to every politician at some point), will he subject himself to the same choice of fates?
I think Sen. Grassley's choice of words was unfortunate to say the least. His intent may have been to communicate that it's time to take responsibility, but that's not what his words were. Perhaps he might have stopped at suggesting they resign?
And I agree that AIG is under new ownership, old contracts shouldn't be enforcable, and performance matters. Obama and Congress were told there was no option, and they aren't buying that.No one should. Though I do believe there are executives there greedy enough to sue the US government for bonuses!
Our 'leaders' are suppose to act in a responsible manner and suggesting someone kill themself could not be more counter to that. His words are what is representative with what is wrong with American politics today.
Our real leaders need to think before they act, think before they talk and lead with a sense of responsibility versus speaking from their emotions. Time for a recall election - lets rid Congress of this clown!
For having known of the bonus allotments by AIG's own disclosure, allowing the bailout to proceed without making it contingent on canceling those bonuses, and now feigning disgust for populist purposes, perhaps Senator Grassley and his colleagues should "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 I don't mean that rhetorically.
whether it be hare kare hari kari, or suppuku. Those times and events have no bearing on this. This is not about a troubled soul seeking release, as in today. Nor is it about a sacrifice of one leader of a clan, accepting the punishment so those he loves will endure.
in my opinion each of these guys wshould have to make a website with all of them apologizing for being greedy little &*^%$%^ one at a time and have it run in loops for the next year.
I remain a fan of President Obama but feel he has made a grave mistake in letting Timothy Geithner be in charge of Treasury. The guy is not up to the job, and I personally don't trust his allegiances.
who are these bonus.bastards? I want to see their faces and hear them try and justify why they should get millions in bonuses.
waiting for an explanation.....
Financial aide from congress to anyone regarless of their party affiliation, to make it easy for them to purshase a house without a down payment and or a full time job is a recipe for disaster.The reason our country is in such bad shape is because of the easy loans supplied by the the funds contollled by Barney snake in the grass Frank and his democrtaic coharts.After two iterations of fraud and deceit Barney is back and our economy is headed for another calamity. Its a even bet the democrats could figure that out, but no, we seem doomed to repeat our errors with regularity. Hopefully we will learn the end dosen't always justify ther means/ crap in crap out.
John's Son
"From my understanding these are bonuses that were apart of a signed contract between AIG and that employee."
Unrelated to performance? Such a deal.
I agree with the Senator- the first good idea from a politician in a long time.
Here are others who should do likewise:
1. Bernie Madoff
2. Mrs Madoff and all the little Madoffs
3.Any other executive taking taking bailout money doing the same thing as the PIG oops AIG employees
4. All the members of the SEC who were warned about the Madoff scheme yet did nothing
5. Oil company executives who continue to cause the price of gas to go up as much as they do and show enormous profits as a result.
6. All the greedy people who granted loans to people who should not have received them.
7. All people who took out mortgages who had no business doing so and now are defaulting." I was tricked into a mortgage " what a crock of sh*t
8. Anyone who can afford to payoff their mortgages, but are not doing so because the value of thier homes has declined.
9. Al Sharpton and Jesse Jackson because they extort companies into giving their organizations money- "give our we'll tell the Black Community to boycott your company/product"
10. I am sure I forgot some people so please feel free to add to the list- I know at least one out there will suggest I take the senators advice so I'll get that one out of the way right now.....
Why they should get bonuses.. because if you look at 9 of the 12 months from 2008, these guys had a pretty damn good year..and their bonuses should be reflective of that. In addition all bonuses across the board have been significantly scaled back to reflect what was earned in the first 3 quarters.. What's the issue here?
Honestly I am sick of everyone complaining about this and that. What is done is done, get back to work and focus on the task at hand. the media and the social network space are doing nothing but facilitating dragging this thing out longer and longer
People need to stop being so freaking UPTIGHT about comments others make. What these AIG execs have done is a travesty and in my opinion, should be punishable with a death sentence like in China. Maybe that fear would help solve the corporate greed problem that has plagued this country for years.
These people have no honor. That word doesn't belong in their vocabulary, as you can see they took this money and ran.
Should they kill themselves? If they had any decency they would disappear off the face of the planet. I had two people in my family who committed suicide. These comments don't offend me at all.
GET OVER IT
Boston7684, which branch of AIG do you work for and are you one of the execs paid a bonus?
This guy is right on. Save face and off yourselves.
Rip off artists.
Thank Cris Dood, he added the amendment to the Stimulus Bill to protect the people that were contracted to receive the bonuses. Thanks Cris, please don't write anymore bills. We owe enough already thanks to yo and Barney Frank.
Corporate greed is &*%^$#@ outrageous. It is such an atrocity what these companies are doing.
Suicide is not "honorable"; it is cowardly and selfish.
What about George Bush for presiding over the biggest mess in the history of US? Where is his shame?
Oh for chrissakes, Grassley was clearly not suggesting that anybody ACTUALLY commit suicide and lets be clear, nobody at AIG cares remotely enough about what they have done to even consider doing such a thing. We are not talking about vulnerable, on the edge people here, we are talking about people who think that they are due million dollar bonuses just for breathing. Had Grassley suggested suicide to vulnerable teens or abused kids, wives,etc, I would be outraged! When he suggests it simply as a measuring stick to those who are SO wrapped in their own hubris that they don't understand how atrociously they have behaved, how ineptly they have performed, and how enormous and how punitive the repercussions of their thoughtless, STUPID actions have been upon those much less fortunate than themselves , I have no problem whatsoever with his rhetoric. I have yet to hear of any single AIG executive who is "due" a bonus declining out of recognition of the egregiousness of them collecting money for failing us all and then expecting enormous WELFARE bonuses from us the taxpayers while children in this country go hungry. Give me a list of those who have declined these disgusting bonuses, let me know that they are seeking counseling to deal with their guilt over exploiting the American taxpayer and then I will say Hhhm Grassley might want to go a little lighter on this person.
Until then don't you worry! Any person who may be seeking these astronomical, ridiculous bonuses based on what? hideous performance? can only benefit from Grassley's reality check. And trust me their egos are so monumental, their personalities so narcissistic that they are bullet proof. They are the untouchables. One thing I am learning - whoever said what goes comes around had it wrong. Go out there, lie and cheat on as a high a scale as possible, collect sickening amounts of money until you are caught. The good news though is that there is no penalty for being "caught". While the rest of the poor schmucks suffer from your behavior, you can sit back and laugh while those same poor schmucks pay the mortgage on your fourth home in the South of France. Bon appetit!
Did he say anything wrong?