Republican hypocrisy on AIG bonuses, executive compensation

They Were Against It Before They Were For It writes Suzy Khimm
This week, Republican leaders have leapt to join the populist outcry against the bonuses that ailing insurance giant AIG has awarded its executives. But such rants against executive earnings mark a remarkable about-face for the right flank of the party, which condemned President Obama's decision to set limits on executive pay just last month.
"I really don't want the government to take over these businesses and start telling them everything about what they can do." Minority Leader Mitch McConnell told ABC News in February, when asked about Obama's proposed limits on executive compensation. Senator Jim DeMint, who attacked the original bailout bill as "pure socialism," characterized executive pay caps as a dangerous government intervention. "I think it's a sad day in America when the government starts setting pay, no matter how outlandish they [sic] are," DeMint told the Huffington Post. "This is just a symptom of what happens when the government intervenes and we start controlling all aspects of the economy." DeMint's right-wing compatriot, James Inhofe, also equated limits on compensation with the demise of the American way. "As I was listening to [Obama] make those statements I thought, is this still America? Do we really tell people how to run [a business], and who to pay, and how much to pay?"

A mere six weeks later, DeMint and Inhofe are now attacking the administration for failing to curb these executive payouts. In a long diatribe delivered on the Senate floor on Tuesday, Inhofe abandoned his earlier defense of businesses to make their own decisions about compensation to express his "deep anger" over the pay. "I don't know how someone at AIG giving out or receiving a bonus right now can look at themselves in the mirror," Inhofe thundered on the floor. "You can be sure that we will do all we can to right this wrong and get these bonuses back." DeMint has also found ways to channel his newfound anger against corporate pay. In a letter sent to the Senate Banking Committee yesterday, DeMint, along with David Vitter and Jim Bunning, demanded that AIG contracts be formally subpoenaed to determine why the company was "specifically exempt[ed]" from the executive compensation limits. In other words, DeMint is now asking why AIG hasn't been forced to comply with the conditions that he had so vehemently opposed.

What was once emblematic of a free-market economy--the ability of private industry to determine its wages--is now the sign of a Democrat-led "fiasco" caused by a "lack of transparency and accountability," in the words of DeMint's letter to the Banking Committee. Of course, there are plenty of good reasons to be steamed about AIG's bonuses, but it sure would be nice if Senate Republicans spared us the rank hypocrisy next time.
http://blogs.tnr.com/tnr/blogs/the_plank/archive/2009/03/18/they-were-against...

Category:

News & Politics

Tags:

• President
• Obama
• AIG
• Citigroup
• Citibank
• bonus
• bank
• of
• America
• auto
• worker
• GM
• Chrysler
• Ford
• treasury
• secretary
• Tim
• Geitner
• bailout

[BenjaminWirtz]

It was a process started under Bush but continued by Obama because Obama bailed out more bank and ended up giving AIG more money.

My comment about MSNBC is how bad their reporting is, this lady is so unprofessional.

[leykisfan1]

AIG was bailed out under the bush admin.

[BenjaminWirtz]

Obama gave them the money and now he is blaming them. How stupid. Is MSNBC supposed to be news?.

[pig5689]

If I was one of the high-level executives working at any bank or investment firm (or AIG) Id be writing my resignation & heading to the northern Yukon. The anger over their whoring & greed isnt over. Its kind of dropped to a lull now (as they planned), but theyre in for a surprise around early June when the Dow is predicted to drop so far itll make whats happening now look like VJ-Day. At that point the contracts will be out & the lime pits will be dug & waiting for greedy bank-whores.

[poopstreek]

MSNBC = FOX for the other half of dumbass American voters. Both parties belong to Wall St. If it is not clear by now, you are ignorant, brainwashed, or a child. Where are our troops? Leaving. Where is our money? Leaving. Where are our jobs? Leaving. He really is no different than W. The only difference is the rhetoric. Hell, they even had the same speechwriter! Same Secretary of Defense too! If you must support the blue (D) side, Dennis Kucinich is a good one to follow. Vote Libertarian!

[jaxco1]

ALSO.......

Dont fall into the trap of focusing on these execs who received millions we should not have agreed to - but we did... Instead look at the TRIPLING of the national debt (over the next 10 years) That has occurred in just over 2 months this year alone. If they want you to watch the right hand, you had better keep an eye on the left hand and see what it is up to!

[jaxco1]

Really ridiculous finger-pointing. Chris Dodd sponsored this legislation that authorized these HUGE bonuses. But, let's not let a little thing like the truth get in the way.

So, granted the bonuses tick me off, but we are supposed to be a nation of laws, not a nation of rent-a-mob rabble. The contracts are legal and you cannot (Constitutionally) use the tax code to target and punish a select group. Tax codes were never intended to be punitive, they are supposed to be written to raise money.

[carthfhuil]

No, you're exactly right about the Fed's doing this one and not TARP. The sick thing is that it's so hard to keep up with where the billions and trillions are coming from and where they're going.

But let's be honest, Obama and McCain are so financially illiterate they wouldn't know the difference anyway. They DID vote to give away 700 billion. But they didn't, not once, contemplate doing something besides giving away taxpayer money.

[danboone143]

Exactly

It's a bi-partisan crime fest. De-regulation was possible because the clever little wall street slime bribed (campaign contributions) both parties in the 80s and both parties accepted the bribes and gave the wall street crooks what they wanted, massive de-regulation and limited oversight. The results are not surprising, no accountability, no punishment and taxpayer bailouts.

If they don't jail these guys we are doomed.

[jjrglobal]

Madcow is misleading as usual. The congressman wanted the contracts renegotiated between the UAW and the car companies.A far cry from the government mandating or taxing contracts unconstitutionally. Will someone stick a dick in her mouth and shut her up.