Re: Congress Passes A Bill of Attainder To Get AIG

On Sat, 21 Mar 2009 08:48:01 -0700, Islander <nospam@xxxxxxxxxxx>
wrote:

El Castor wrote:
On Fri, 20 Mar 2009 16:52:51 -0400, Jim Higgins
<gordian238@xxxxxxxxxxx> wrote:

Gary wrote:
On Fri, 20 Mar 2009 12:04:50 -0700, El Castor <No_One@xxxxxxxx> wrote:

"A bill of attainder (also known as an act or writ of attainder) is an
act of legislature declaring a person or group of persons guilty of
some crime and punishing them without benefit of a trial."
... Wikipedia


"Is Congress using a Bill of Attainder to get A.I.G.?
March 20, 2009 - 8:34am.

So with little argument and a 300-plus majority, Congress yesterday
voted to tax bonuses given by companies (read "A.I.G.") funded under
TARP at 90%, thus recovering the multi-million dollar awards to anyone
in these companies earning over half a million bucks in regular
income. The fact that this was targeted at TARP recipients in general
was an attempt to generalize the law... and not make it, as it clearly
is, a focused punishment of a particular company.

Essentially, this is what is referred to as a Writ or Bill of
Attainder, and which is specifically banned in the Constitution.

A bill of Attainder is legislative act that singles out an individual
or group for punishment without a trial. Article I, Section 9,
paragraph 3 specifically states: "No Bill of Attainder or ex post
facto Law will be passed."

James Madison, writing in the Federalist Papers (Number 44) in 1788
stated:

"Bills of attainder, ex post facto laws, and laws impairing the
obligations of contracts, are contrary to the first principles of the
social compact, and to every principle of sound legislation. ... The
sober people of America are weary of the fluctuating policy which has
directed the public councils. They have seen with regret and
indignation that sudden changes and legislative interferences, in
cases affecting personal rights, become jobs in the hands of
enterprising and influential speculators, and snares to the
more-industrious and less-informed part of the community."
http://www.capitolhillblue.com/node/16599
I wish Barney Frank would get serious and do something worthwhile
about these crooks. I'd suggest he deputize a firing squad and
direct them to the executive suite of AIG.
Wouldn't it be cheaper to have them skip the elevator and go out the
40th floor window?

Excellent idea. Then we can send in Jim, Gary, and Rita to unwind that
$1.3 trillion in derivatives. When are you guys going to get it
through your thick skulls that the people responsible for the debacle
in the Financial Products Division are gone and the soldiers left
behind have no future there, so they could use an incentive to stick
around and take the abuse and threats from you numbskulls until it's
time to turn out the lights?

The head of AIG was fired and the retired CEO of Allstate was brought
in to clean up the mess. The head of the Financial Products Division
was likewise fired, and the current head was brought in from Morgan
Stanley last November to try and salvage what he could for the
American taxpayer from their toxic portfolio (which has to be hedged
constantly) and shut down the Division, and what has he gotten for his
trouble? Threats against himself and his children and an armed guard
in the parking lot. Shame on you Jim.

The bill is political posturing and I doubt that it will get through the
Senate. If, in fact, this division of AIG is shut down, I will agree
that their management are really trying to solve the problem. My fear
is that everyone is just desperately trying to return things to the way
they were before.

Edward Liddy was brought out of retirement to reorganize and dismantle
AIG and extract the most value for the taxpayer. Neither the Treasury,
nor Mr. Liddy has any vested interest in "desperately trying to return
things to the way they were before". Liddy is very clear that the
Financial Products Division is being shut down. The traders are being
paid retention bonuses because AIG desperately need to retain them in
the short term, but in the long term their jobs will be eliminated.
They are needed to hedge and liquidate more than a trillion dollars of
the most complex financial instruments on the planet. We need them
there. They are the only ones with a thorough top to bottom
understanding of how to hedge that portfolio. Anonymous threats to
hang them with piano wire and kill their children are not helpful.

Here is Edward Liddy in a piece he wrote for the Washington Post three
days ago. He makes what he is doing very clear. He did not come out
of retirement to "desperately try to return things to the way they
were before". I might add that he is doing what he is doing in close
cooperation with Obama's Treasury Secretary. I suppose you and Harry
realize that the ultimate fate of AIG is very much in the hands of
Barack Obama, so your accusations of deceit and desperation are
ultimately directed at the man you voted for:

"The business unit that was the source of our greatest losses is being
shut down. And we have agreed with the Federal Reserve and the
Treasury to pay off AIG's existing loan through a combination of asset
transfers, securitization of the cash value of certain life insurance
businesses, and cash from the sale of businesses."
.... Edward M. Liddy
http://www.washingtonpost.com/wp-dyn/content/article/2009/03/17/AR2009031703019.html
.

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