"Forget al-Qaida - the world's most successful terrorist organization, by a margin of roughly $170 billion dollars, exists right here in the U.S."

from http://zerohedge.blogspot.com/2009/03/americas-will-yield-to-aigs-demands-or.html

ter⋅ror⋅ist  /ˈtɛrərɪst/ [ter-er-ist]

–noun
1. a person, usually a member of a group, who uses or advocates terrorism.
2. a person who terrorizes or frightens others.
3. (formerly) a member of a political group in Russia aiming at the demoralization of the government by terror.
4. an agent or partisan of the revolutionary tribunal during the Reign of Terror in France.
5. American International Group

Forget al-Qaida - the world's most successful terrorist organization, by a margin of roughly $170 billion dollars, exists right here in the U.S... in fact we will make it easy for the FBI - its terrorist boot camp is located at 70 Pine Street, New York, NY 10270, and they even answer the phone at 212-770-7000. The organization in question, is of course, known as American International Group. And while the U.S. has claimed it will not negotiate with any ad hoc or designated terrorist organization ever, it has time after time succumbed to every single whim and demand that AIG has raised, from shelving out hard-earned taxpayer money to make sure the company does not disappear in the gravitational vortex of its derivatives Frankenstein, to protecting its cabal of crony amateur terrorists in waiting (read CDS counterparties who benefited from every bailout, for a complete list see here), to its employees who mindnumbingly keep receiving bonus after bonus payment. And if America was any country in Europe, with a touchy-feely sense of ethical propritery, this article in the New York Times would have resulted in mass looting.

As the MSM disclosed a few days ago, Geithner, in a horrendous attempt to play Robin Hood for the masses pressured AIG to cut the $9.6 million its top 50 executives were going to receive. While that bit of information was purposefully circulated, the salvo that came from the NY Times was a bit of a fly in Geithner's ointment. Turns out AIG is paying out $165 million in "retention" bonuses over the next few days, with a range of as little as $1,000 to as much as $6.5 million for some lucky terrorist, and seven additional executives receiving bonuses more than $3 million. Now the logic for why these bonuses can not be reversed is that they were promised at some point last year, and AIG (aka US taxpayers) is contractually and legally bound to satisfy them.

This development has made some new and even more toothless Robin Hoods appear on stage center, among them Obama's chief economic advisor Larry Summers, claiming the bonus situation at AIG "is outrageous. The whole situation at AIG is outrageous. What taxpayers are being forced to do is outrageous" however "We are a country of law. There are contracts. The government cannot just abrogate contracts. Every legal step possible to limit those bonuses is being taken by Secretary Geithner and by the Federal Reserve system." Other politicians taking the populist flag for a spin include Republican Mitch McConnell who said:

"If you're going to take the government as a partner, the message here, I'm afraid, to any business out there that's thinking about taking government money, is "Let's enter into a bunch of contracts real quick, and we'll have the taxpayers pay bonuses to our employees." For them to simply sit there and blame it on the previous administration or claim contract — we all know that contracts are valid in this country, but they need to be looked at. Did they enter into these contracts knowing full well that, as a practical matter, the taxpayers of the United States were going to be reimbursing their employees? Particularly employees who got them into this mess in the first place. I think it's an outrage."

Of course, none of this would have been necessary had the government done the right thing and put this bankrupt company where it belongs: into a controlled, pre-packaged or otherwise bankruptcy. Under bankruptcy law, not only would existing bonus contracts be renegotiable, but even historical bonuses would be subject to 3 year clawbacks under the terms of fraudulent conveyance. But of course, this would never happen as that would mean someone in the administration would have to make the right decision.

rest http://zerohedge.blogspot.com/2009/03/americas-will-yield-to-aigs-demands-or.html