Connecticut Attorney General Richard Blumenthal recently sat down with Fox News commentator Glenn Beck to debate the $220 million AIG bonus fiasco. What transpired was an especially lively and spirited debate focused on the United States government's 'legal authority' to take back the bonuses contractually guaranteed to AIG employees.In terms of background, American International Group (AIG) is the NOTORIOUS U.S. financial products company that foolishly risked and LOST the house on sour, unregulated credit default swap (CDS) investment bets. The only reason AIG even exists today is because of the U.S. government's highly controversial September 2008 decision to intervene in the financial markets and assume the company's gigantic GLOBAL liabilities. To date, the government has essentially taken over the insurance behemoth by infusing it with approximately $180 Billion in U.S. taxpayer funds in return for an 80% ownership stake.
While I most certainly understand and empathize with the public's justifiable OUTRAGE (...there are after all 180 BILLION reasons to be OUTRAGED over these bonus payouts...), I believe Mr. Beck's assessment is fair and share his concerns regarding precedent and the 'Slippery Slope of LAW' issue now facing the country.
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Data Courtesy: Fox News
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