McCain: There's plenty of blame in AIG mess

by Jon Zimney/KTAR (March 18th, 2009 @ 8:26am)

Policy >>

Comments:5

Despite contrary news reports, sources in the Obama administration insist they did not know until just last week that AIG was paying employees big bonuses.

But it doesn't matter when they figured it out, said Arizona Senator John McCain.

The Republican senator told the Fox News Channel the real screw-up is that the bonuses were allowed.

"What's this, the fourth package that they've gotten of tens of billions of dollars and there was a provision, I'm told, that was an attempt to limit executive compensation and that was killed."

Prior to the stimulus being passed, the Senate approved an amendment restricting bonuses over $100,000 at any company receiving bailout money.

But during the closed-door House and Senate negotiations, the provision was stripped out.

McCain said the biggest outrage of the AIG debacle is the fact that the insurance giant sent billions of dollars to banks, governments and other partners out of the U.S. "European banks were bailed out with American taxpayers' dollars. That's the real outrage here. Frankly, in many respects, than the hundred and some million dollars in executive compensation."

The Wall Street Journal reported that since September, AIG has sent least $20 billion taxpayer dollars to bailout European banks.

And if you think what has happened with AIG is bad, just wait for the bombshells in the massive spending package just approved to hit, said McCain.

He said lawmakers are passing these huge bills without carefully scrutinizing them.

"We'll be finding out stuff for months. It was full of not only pork, but policy changes - this trade war we're starting with Mexico, buy America in the last one, protectionism is on the rise and our friends and allies around the world won't like it."

Last 4 Comments

• 0 Reply Abuse Vote

  I found out who at least three were

  dell

  that were against capping bonuses and pay. 1. Senator Richard Shelby (R): "It should be us to the board of directors of a private corpration to set compensation of exectuive pay. It shouln't be congress's role" 2. Eric Cantor (R): said "he was not in vavor of the federal government being able to set salaries across the board". This quote is from when the issue came up of executive compensation IN SEPTEMBER 2008. 3. Esteemed Ex President Bush (R) who warned legislators not do to this as well. THIS ALL HAPPENED IN 9/08. Well before Obama took office. Pathetic.

  7424
• 0 Reply Abuse Vote

  So who was

  dell

  it in this closed door House and Senate negotiations meetings that pushed for this measure to be stripped? I want to know names and party - not just party. No matter who they were they should be stripped of the prvilidge to serve.

  7413
• 0 Reply Abuse Vote

  Yes... they DID know...

  FS-Golf

  What is this garbage about them not knowing they were getting bonuses??? That is how they get paid! Instead of getting a salary of $2M, they get $500k, then a $1.5M dollar bonus because CONGRESS wants them to do it that way. Don't listen to the nonsense talk of the bonuses, look at where the money is going!!!! Other countries are getting the majority of the funds. Why is France being bailed out???

  7385
• 0 Reply Abuse Vote

  EXACTLY!

  D M

  "European banks were bailed out with American taxpayers' dollars." Not only that, but think about this, Americans pay phenomenal prices for prescriptions, too. Don't you just find is amazing that there is NO OTHER COUNTRY IN THE WORLD that pays what WE pay? The new administration knew all about these executives getting their bonuses and they did ABSOLUTELY NOTHING to stop it. SSDD - same s___, different day (or year, or administration!)!!!!!!

  7376
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