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AIG plans to pay $100 million in another round of bonuses

AIG plans to pay $100 million in another round of bonuses

** Editors Note:

I believe it's time that every policy holder of AIG switch insurance companies! If this company 'AIG' has enough surplus of money after accepting a bail out from the Country to again pay millions of dollars in bonus' to their top exec's then they're making too much money, and their policy holders should abandon them to their own devices! SWITCH INSURANCE COMPANIES AND LET THEM KNOW WHAT YOU THINK!

*****

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AIG plans to pay $100 million in another round of bonuses

By Brady Dennis
Washington Post Staff Writer
Wednesday, February 3, 2010; 12:11 AM

American International Group plans Wednesday to pay another round of employee bonuses, worth about $100 million, said several people familiar with the matter, a year after similar payments at the bailed-out insurance giant infuriated many Americans and inflamed Washington.

This week's retention payments go to those employees at the company's Financial Products division who agreed recently to accept 10 to 20 percent less money than AIG had initially promised them two years ago. In return, they are to receive their payments more than a month ahead of schedule.

The company is still scheduled to pay out tens of millions of dollars more in March, mostly to former employees who did not agree to the concessions.

AIG executives have been scrambling to hammer out a compromise before March 15, when the firm faces a deadline to pay nearly $200 million in bonuses to employees at Financial Products, the unit whose risky derivatives deals brought the insurer to the brink of collapse in 2008. Government and AIG officials have been eager to avoid a repeat of the public furor that erupted last March when an earlier round of payments -- worth $168 million -- went to the same set of employees.

While many in the public and on Capitol Hill have been angered by outsize paydays at financial firms, the AIG retention bonuses have been especially rankling because the company has received a federal rescue package of about $180 billion in loans, stock investments and other commitments from the Federal Reserve and the Treasury Department.

People familiar with the negotiations said about 97 percent of current employees at the Financial Products division agreed last week to forgo 10 percent of their upcoming bonuses in return for early payment. Participation rates have remained far lower -- about 35 percent, two people said -- among former employees, who were asked to surrender 20 percent of their bonuses.

Gerry Pasciucco, who was hired after the bailout to run Financial Products and help dismantle it, sent an e-mail to employees this week explaining that the company had decided to move forward with the reduced payments. "We expect payment to be received in your account no later than Wednesday, Feb. 3," it read in part.

"This lets us, as a business, pivot away from this issue," said one Financial Products employee, who spoke on the condition of anonymity because he was not authorized to speak on the record. "Current employees stepped up. They want to continue to do their business. They obviously want to get beyond this."

Andrew Goodstadt, a New York lawyer who represents more than a dozen current and former Financial Products employees, said he hoped the deal would be a step toward normalcy. "My clients are looking forward to getting paid their contractual entitlements," he said, "and resolving this matter once and for all."
Seeking repayment

The new payments are in part an attempt by AIG to meet two demands from U.S. compensation czar Kenneth R. Feinberg. One is to scale back the size of the bonuses. By paying the employees less than they had been promised, the company is also seeking to compensate for $26 million that Financial Products employees had said they would return last year but did not.

At the height of the controversy last spring, employees at the firm signaled they would return a total of $45 million by the end of 2009. A government audit in the fall showed that only about $19 million was returned. Feinberg has insisted that the full amount be repaid, though the $20 million in recent concessions still falls short of that mark.

AIG has been consulting with Feinberg about its negotiations with employees over reducing their bonuses in return for early payment.

"We are greatly appreciative that virtually all -- some 97 percent -- of active FP employees have volunteered to reduce their upcoming 2010 payment to help achieve our giveback target," AIG spokesman Mark Herr said. "We have decided to begin these reduced payments to these active employees as well as those non-active employees who agreed to reductions. The reductions from these two groups stand at about $20 million, and we believe this allows us to largely put this matter behind us."

Herr added that some former employees had agreed to reduce their payments by an additional $4.5 million, but it remained unclear whether that money could count toward the payback goal. "Nonetheless, we will continue to work with the non-active employees to round out the remaining amount of our giveback target over the next few months," Herr said.

"These payments are tied to employment contracts from 2007 that fell outside the jurisdiction of the Special Master [Feinberg] and the law," said Andrew Williams, a Treasury spokesman. "We are encouraged that AIG employees are making good on the repayment pledges they made last spring."

Few aspects of the financial crisis have angered lawmakers and ordinary Americans as much as the AIG bonuses. On Tuesday, Sen. Charles E. Grassley (R-Iowa) said of the latest round of payments: "The Obama administration has been outmaneuvered, and the closed-door negotiations just add to the skepticism that the taxpayers will ever get the upper hand."
Legally binding

The roots of the controversy developed months before the government's rescue of the giant insurer. As the housing bubble was collapsing and the company's trading in financial derivatives called credit-default swaps was starting to cost the company billions of dollars, AIG officials instituted the guaranteed retention payments to keep employees during the coming period of financial instability. Financial Products employees were promised more than $400 million in retention pay, with lump sums due in March 2009 and March 2010.

Government and AIG officials agreed last year that the bonuses at Financial Products, however unsavory they might seem after the company's multiple federal bailouts, were legally binding. That explanation did not sit well with millions of Americans who were out of work and whose tax dollars had gone to prop up the faltering insurance giant.

When word of the payments erupted into a national news story last March, President Obama vowed to "pursue every single legal avenue to block" the bonuses. Lawmakers backed a bill that would have taxed the payments to Financial Products employees at 90 percent. The issue eventually died down -- publicly, at least -- but government and AIG officials recognized that the second round of payments due this March threatened to stoke public anger once again.

Financial Products has shrunk steadily during the past year, winding down the number of derivatives trades on its books to about 16,000 at the end of 2009 from 44,000 before the bailout. It has closed offices in Hong Kong and Tokyo and reduced its staff to 237 employees from 428.

"People will be relieved that they can now remove this as a distraction, focus on the task at hand and go on with their lives," one Financial Products employee said of this week's compromise. "People did it to put it behind them."

Staff writer Zachary A. Goldfarb contributed to this report.

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Open Letter to President Obama on Health Care Reform From Margaret Flowers, MD | ProsperityAgenda.US

Open Letter to President Obama on Health Care Reform From Margaret Flowers, MD | ProsperityAgenda.US

Obama opened the door a crack but no one can get through because of security, and politics. He asked for advice, but isn't available to hear it!

Open Letter to President Obama on Health Care Reform From Margaret Flowers, MD
Jan 27, 2010 — KZeese

January 28, 2010

President Barack Obama
1600 Pennsylvania Avenue
Washington, D.C. 20500

Dear President Obama,

I was overjoyed to hear you say in your State of the Union address last night:

“But if anyone from either party has a better approach that will bring down premiums, bring down the deficit, cover the uninsured, strengthen Medicare for seniors, and stop insurance company abuses, let me know.”

My colleagues, fellow health advocates and I have been trying to meet with you for over a year now because we have an approach which will meet all of your goals and more.

I am a pediatrician who, like many of my primary care colleagues, left practice because it is nearly impossible to deliver high quality health care in this environment. I have been volunteering for Physicians for a National Health Program ever since. For over a year now, I have been working with the Leadership Conference for Guaranteed Health Care/ National Single Payer Alliance. This alliance represents over 20 million people nationwide from doctors to nurses to labor, faith and community groups who advocate on behalf of the majority of Americans, including doctors, who favor a national Medicare for All health system.

I felt very optimistic when Congress took up health care reform last January because I remember when you spoke to the Illinois AFL-CIO in June, 2003 and said:

"I happen to be a proponent of a single payer universal health care program." (applause) "I see no reason why the United States of America, the wealthiest country in the history of the world, spending 14 percent of its Gross National Product on health care cannot provide basic health insurance to everybody. And that's what Jim is talking about when he says everybody in, nobody out. A single payer health care plan, a universal health care plan. And that's what I'd like to see."

But as all of you know, we may not get there immediately. Because first we have to take back the White House, we have to take back the Senate, and we have to take back the House."

And that is why I was so surprised when the voices of those who support a national single payer plan/Medicare for All were excluded in place of the voices of the very health insurance and pharmaceutical industries which profit off the current health care situation.

There was an opportunity this past year to create universal and financially-sustainable health care reform rather than expensive health insurance reform.

As you well know, the United States spends the most per capita on health care in the world yet leaves millions of people out and receives poor return on those health care dollars in terms of health outcomes and efficiency. This poor value for our health care dollar is due to the waste of having so many insurance companies. At least a third of our health care dollars go towards activities that have nothing to do with health care such as marketing, administration and high executive salaries and bonuses. This represents over $400 billion per year which could be used to pay for health care for all of those Americans who are suffering and dying from preventable causes.

The good news is that it doesn’t have to be this way. You said that you wanted to “keep what works” and that would be Medicare. Medicare is an American legacy of which we can feel proud. It has guaranteed health security to all who have it. Medicare has lifted senior citizens out of poverty. Health disparities, which are rising in this nation, begin to disappear as soon as patients reach 65 years of age. And patients and doctors prefer Medicare to private insurance. Why, our Medicare has even been used as a model by other nations which have developed and implemented universal health systems.

Mr. President, we wanted to meet with you because we have the solution to health care reform. The United States has enough money already and we have the resources, including esteemed experts in public health, health policy and health financing. Our very own Dr. William Hsiao at Harvard has designed health systems in five other countries.

I am asking you to meet with me because the solution is simple. Remove all of the industries who profit off of the American health care catastrophe from the table. Replace them with those who are knowledgeable in designing health systems and who are without ties to the for-profit medical industries. And then allow them to design an improved Medicare for All national health system. We can implement it within a year of designing such a system.

What are the benefits of doing this?

• It will save tens of thousands (perhaps hundreds of thousands) of American lives each year, not to mention the prevention of unnecessary suffering.

• It will relieve families of medical debt, which is the number one cause of bankruptcy and foreclosure despite the fact that most of those who experienced bankruptcy had health insurance.

• It will relieve businesses of the growing burden of skyrocketing health insurance premiums so that they can invest in innovation, hiring, increased wages and other benefits and so they can compete in the global market. For example, it is estimated to provide a major stimulus for the U.S. economy by creating 2.6 million new jobs, and infusing $317 billion in new business and public revenues, with another $100 billion in wages.

• It will control health care costs in a rational way through global budgeting and negotiation for fair prices for pharmaceuticals and services.

• It will allow patients the freedom to choose wherever they want to go for health care and will allow patients and their caregivers to determine which care is best without denials by insurance administrators.

• It will restore the physician-patient relationship and bring satisfaction back to the practice of medicine so that more doctors will stay in or return to practice.

• It will allow our people in our nation to be healthy and productive and able to support themselves and their families.

• It will create a legacy for your administration that may someday elevate you to the same hero status as Tommy Douglas has in Canada.

Mr. President, there are more benefits, but I believe you get the point. I look forward to meeting with you and am so pleased that you are open to our ideas. The Medicare for All campaign is growing rapidly and is ready to support you as we move forward on health care reform that will provide America with one of the best health systems in the world. And that is something of which all Americans can be proud.

With great anticipation and deep respect,

Margaret Flowers, M.D.
Maryland chapter, Physicians for a National Health Program
mdpnhp@gmail.com
410-591-0892



© 2009 ProsperityAgenda.US

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Stop the Corporate take over of American Politics

http://action.citizen.org/t/10315/petition.jsp?petition_KEY=2190

"Presented by Jim Hightower"

Last September, I wrote The Hightower Lowdown about how the Roberts' Court could throw out over 100 years of campaign finance law.

Remember their names: Alito, Kennedy, Roberts, Scalia, and Thomas.

Yesterday, from within the dark isolation of the Supreme Court, these five men pulled off a black-robed coup against the American people's democratic authority. In an unprecedented perversion of judicial power, this court cabal has decreed that corporations have a free-speech "right" to dip into their corporate coffers and spend unlimited sums of money to elect or defeat candidates of their choosing.

Corporate interests already had too much money power over our political system. No other group in America comes anywhere near the spending clout that this relatively small clutch of wealthy special interests wields over our elections and government. So it's ludicrous for anyone – much less Supreme Court judges – to argue that the corporate voice is a victim of political "censorship." This is not merely judicial activism, it is judicial radicalism.

Thomas Jefferson warned about the dangerous rise of corporate power, declaring that must "crush in its birth the aristocracy of our moneyed corporations." Today, I'm sure that founding patriots like Jefferson are not simply spinning in their graves at the Supreme Court's surrender to this aristocracy – they're trying to claw their way out of their graves to throttle all five of the traitors.

We MUST fight back. Many good groups are working on this issue, and we all have to get involved to fight against this corporate take over of our political system. Public Citizen has a petition we can sign. Common Cause is asking us to contact your congressperson and make sure they have signed on to the Fair Elections Now Act. I mentioned other good groups that are working on this issue. Get in touch with them. Let's fight the good fight... and win! Onward!

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Take Action for the Center for Biological Diversity

Take Action for the Center for Biological Diversity

Volunteer to Distribute Free Endangered Species Condoms

Be a part of the Center for Biological Diversity’s brand-new Endangered Species Condom Project, a campaign to nationally distribute free condoms in six different packages featuring endangered species threatened by human overpopulation, with the goal of raising awareness about overpopulation’s serious impacts on our planet. The packages will be released next month, and we need your help to get them out. Sign up below and you can help us educate people across the country about what overpopulation does to species that don’t have the privilege of over-reproducing — or even reproducing enough to survive — from the spotted owl to the Puerto Rico rock frog to the polar bear.

After you sign up, a Center staff person will contact you with more details. Thank you for taking action on this critical issue and being part of our exciting new project.

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Tell the FCC to Stand Up for Net Neutrality! | Save the Internet

Tell the FCC to Stand Up for Net Neutrality! | Save the Internet

If the FCC bows down to the huge telecoms, and cable companies it will put millions of small business at risk because they will not be able to compete against the giants of corporate America that will be able to pay increased fees to market their products.

Net Neutrality allows information to freely flow on the Internet as it was originally conceived and designed to do by the early pioneers of the Internet.

Public access to all in all equality is what the founders of the Internet had in mind; a free flowing exchange of Ideas available to everyone that had computer access.

With out Net Neutrality, that Idea fails because the huge telecoms, and cable companies will decide who gets delivery of their information, and at what speed. Deep pocketed corporations will rule the Internet, and those with less capital backing them will only hope for delivery of their messages in a timely fashion.

The telecoms and cable companies do not own the Internet, it is a public trust just as the radio and television air waves are a public trust. The FCC oversees these media avenues for the 'PEOPLE' that has empowered them to do so. If the FCC allows the telecoms, and cable companies to rule the Internet, they will have violated the public trust.

An open Internet with Net Neutrality is the last open opportunity for the small entrepreneur to attempt to compete in a corporate run world!

Because telecoms, and cable companies saw a business opportunity, and had the capital to put the idea into operation, only means that they have the opportunity to sell their services to those that wish them. It does not give them the right to force out other entrepreneurs from doing business on the Internet.

Do not give into them!

The lively hood of millions of small entrepreneurs depend on your decision to maintain Net Neutrality!

Tell the FCC how you feel about Net Neutrality here!
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Winning the war on terrorism with silence!

Every brand, every idea requires one very important ingredient to become successful.

Coke, Pepsi, would not have become household names World Wide without this one essential ingredient.

Terrorism requires the same essential ingredient in order to grow, and survive!

This one essential ingredient reaches out to even the most remote areas of Earth, and effects the ideas and behavior of every living person Planet wide.

It comes in a plethora of ways, never the same format, but always the same nonetheless.

We live in the information age!

And Media dictates our every thought from morning to night.

Good thoughts and evil thoughts are put in our faces to digest every moment of each and every day with little thought to the repercussions or the outcome.

Thoughts are things, and the more attention paid to a single thought, the more powerful it becomes.

Until at last it becomes a tangible thing, taking on a life of its own, and growing into something worthwhile, or incredibly evil simply because of the power of thought...

Terrorism begins as a thought in the minds of fanatical people.

They share that thought with more fanatics, or lost souls seeking a way to show that they live, and the idea grows.

Then one of the fanatics does a terrible thing to mankind, and the media tells the world about it.

The idea gets the one essential ingredient required for massive growth; publicity, and it grows even greater in size.

Again a fanatic does something terrible, and the media gives it more growth until at last it has the attention of the world, and its growth is nearly unstoppable.

Nearly is the key word here!

If an idea doesn’t receive any attention, it simply fades, and after a while it doesn’t exist because no one remembers it.

We can send all the troops in the world.

Spend millions, and billions, and even trillions of dollars in an attempt to combat terrorism, but until we use the weapon of silence, we are simply fueling the growth of terrorism by applying the one thing it requires to grow; ATTENTION!

If we eliminate reference to terrorism in our media, we take away terrorism’s biggest weapon.

Yes, they’ll still have their armament, but as time goes on, and less and less press is given their activities there will come a time when they discover that no one is noticing and their cause will die of inattention!

Of course it will be impossible to dismiss, or ignore their terrorist acts towards their fellow men, but if it is reported in a different manner, giving no name to terrorism, simply reporting that X # of people died because a building fell, or a car had an accident, and it’s gas tank exploded, etc. etc. .

We give terrorism no credit, and begin its demise!

No matter how much they rant, and rail if no one pays attention, or gives lip service to their activities; they are destined to wither, and die of inattention!

We can win the war on terrorism with SILENCE!
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