Just two weeks ago, President Obama and his Congress handed over another $30 billion to AIG (on top of the two prior rounds of taxpayer money AIG got under Bush – with Obama’s support).
Therefore, just two weeks ago, Obama and his Congress -- indeed only Obama and his Congress -- had the ability to force AIG executives and former executives to forego the hefty bonuses.
Obama had the BILLIONS – thus Obama had the LEVERAGE.
Once Obama handed over the billions (as he so happily did), he squandered the leverage.
Here’s how it could have played out…. President Obama: “It’s simple Mr. AIG Executive, either you voluntarily forego your obscene bonuses (retention or otherwise) or we keep our $30 billion. Your choice.”
What do you think AIG would have done? Me too.
Mr. Obama has tried hiding behind the irrelevant claim that his administration didn’t write the contracts requiring the bonuses. It’s irrelevant because having the billions, like Obama did, enabled Obama to say “get rid of the contracts or I keep my billions.” It was then AIG’s choice to modify those contracts – irrespective of who wrote the damn things. Continued...
Kevin James began his professional career in 1988 as a lawyer with one of Los Angeles' largest law firms. Soon thereafter, Kevin spent more than 3 years as an Assistant U.S. Attorney in LA, and then more than 10 years as a litigator in high profile entertainment matters.