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Once again politics prevail...
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President Obama is hard to pigeonhole when it comes to dealing with this financial crisis the nation finds itself in. On one hand he says he wants to help homeowners stay in their homes, on the other hand he lends billions to the very banks that directly or indirectly created the situation to begin with.

He criticizes and rebuffs the corporations that built sand castles by backing derivitives that created the inflated housing and stock market, then when its time to step up to the plate and do something about it, he backs down to a moderate 'let's see if there's a constitutional way' of managing recalcitrant beneficiaries of the public trough.

The question remains, what's constitutionality got to do with individuals benefitting from public funds. As a government, procedures are in place when a contractor runs over budget to recover some losses through punitive fines and penalties. But, in the case of AIG, President Obama says he wants to find a better legal remedy than punitive taxes on a few millionaires. Well, Mr. President, I submit to you that a company receiving government funds is obligated to act in the best interests of the United States... not the corporation, and if it does not conduct its fidiciary responsibility, the company, its officers and employees are liable for that cost. That used to be part of every business contract. Duh!

Link here: http://news.yahoo.com/s/ap/20090323/ap_on_go_pr_wh/obama_economy

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As the President rolls over, so rolls the Congress...
By Doc Mar 28th 2009 at 10:02 pm EDT (Updated Mar 28th 2009 at 10:02 pm EDT)
After much mincing of words, threats of dubious inaction, questions of constitutional limits on action against beneficiaries of public funds... the President has decided to roll over, forget and move on without action on AIG. Is anyone truly surprised. Honestly, the difference between the two most recent administrations so far is the previous administration made an art out of talking points and spin then did what they wanted anyhow, the current administration doesn't bother with either and still does what it wants anyhow. Its days like this that make pundits pray for a scandal, but I think the White House is too busy at the moment.

Link here: Link
Re: As the President rolls over, so rolls the Congress...
By Michael Ditto Mar 28th 2009 at 10:33 pm EDT (Updated Mar 28th 2009 at 10:33 pm EDT)
Cuomo is doing a good job already, I think they're just getting out of his way. Connecticut is also taking action for the people within their jurisdiction.

A lot of the money is already offshore, because most of the AIGFT employes are foreigners.

--

Link

Attorney General Andrew M. Cuomo of New York announced late Monday afternoon that 9 of the top 10 bonus recipients at the American International Group were giving back their bonuses.

He also said 15 of the largest 20 bonus recipients in A.I.G.'s financial products division had agreed to give back the money, for a total that he estimated at about $30 million. "Those bonuses will be returned in full," Mr. Cuomo said during a conference call with reporters.
Re: As the President rolls over, so rolls the Congress...
By Doc Mar 29th 2009 at 10:41 pm EDT (Updated Mar 29th 2009 at 10:41 pm EDT)
While I respect Andrew Cuomo's efforts to move forward on the legality of the contracts, since these matter involve federal funds, and since Tim Guiether as much as fell on sword on enforcement of getting the refunds, chances are that this issue will quickly disappear from the headlines and the $30 million will be all the taxpayers ever see. Maybe there's a better way to fund recovery, as I recall, during the Great Depression there was a tremendous increase crime as the criminals manufactured their own bailouts from midwestern banks... not that I believe crime is the answer. Apparently, following NY Attorney General Andrew Cuomo's thinking, AIG is the Bonnie and Clyde of this economic recession, though there are plenty of other criminals still out there.
  
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