[tomder55]

Hugo Chavez... oops I mean President Obama is going to send his flunky Tim Geithner to Congress today to make a case for expanded executive authority to seize non-bank financial companies, such as large insurers, investment firms and hedge funds.

U.S. Seeks Expanded Power to Seize Firms

[speechlesstx]

Hmmm, no. 1 recipient Barack Obama, no. 2 Chris Dodd. What a surprise.

Speaking of Hugo, he called our dear president an “ignoramus.” That's got to hurt the Hollywood fans of both men.

[inthebox]

Odd how the Obama voters don't respond.

Too busy at his koolaid stand ?;)











G&P

[tomder55]

The following is a letter sent on Tuesday by Jake DeSantis, an executive vice president of the American International Group's financial products unit, to Edward M. Liddy, the chief executive of A.I.G.

DEAR Mr. Liddy,
It is with deep regret that I submit my notice of resignation from A.I.G. Financial Products. I hope you take the time to read this entire letter. Before describing the details of my decision, I want to offer some context:
I am proud of everything I have done for the commodity and equity divisions of A.I.G.-F.P. I was in no way involved in — or responsible for — the credit default swap transactions that have hamstrung A.I.G. Nor were more than a handful of the 400 current employees of A.I.G.-F.P. Most of those responsible have left the company and have conspicuously escaped the public outrage.
After 12 months of hard work dismantling the company — during which A.I.G. reassured us many times we would be rewarded in March 2009 — we in the financial products unit have been betrayed by A.I.G. and are being unfairly persecuted by elected officials. In response to this, I will now leave the company and donate my entire post-tax retention payment to those suffering from the global economic downturn. My intent is to keep none of the money myself.
I take this action after 11 years of dedicated, honorable service to A.I.G. I can no longer effectively perform my duties in this dysfunctional environment, nor am I being paid to do so. Like you, I was asked to work for an annual salary of $1, and I agreed out of a sense of duty to the company and to the public officials who have come to its aid. Having now been let down by both, I can no longer justify spending 10, 12, 14 hours a day away from my family for the benefit of those who have let me down.
You and I have never met or spoken to each other, so I'd like to tell you about myself. I was raised by schoolteachers working multiple jobs in a world of closing steel mills. My hard work earned me acceptance to M.I.T., and the institute's generous financial aid enabled me to attend. I had fulfilled my American dream.
I started at this company in 1998 as an equity trader, became the head of equity and commodity trading and, a couple of years before A.I.G.'s meltdown last September, was named the head of business development for commodities. Over this period the equity and commodity units were consistently profitable — in most years generating net profits of well over $100 million. Most recently, during the dismantling of A.I.G.-F.P., I was an integral player in the pending sale of its well-regarded commodity index business to UBS. As you know, business unit sales like this are crucial to A.I.G.'s effort to repay the American taxpayer.
The profitability of the businesses with which I was associated clearly supported my compensation. I never received any pay resulting from the credit default swaps that are now losing so much money. I did, however, like many others here, lose a significant portion of my life savings in the form of deferred compensation invested in the capital of A.I.G.-F.P. because of those losses. In this way I have personally suffered from this controversial activity — directly as well as indirectly with the rest of the taxpayers.
I have the utmost respect for the civic duty that you are now performing at A.I.G. You are as blameless for these credit default swap losses as I am. You answered your country's call and you are taking a tremendous beating for it.
But you also are aware that most of the employees of your financial products unit had nothing to do with the large losses. And I am disappointed and frustrated over your lack of support for us. I and many others in the unit feel betrayed that you failed to stand up for us in the face of untrue and unfair accusations from certain members of Congress last Wednesday and from the press over our retention payments, and that you didn't defend us against the baseless and reckless comments made by the attorneys general of New York and Connecticut.
My guess is that in October, when you learned of these retention contracts, you realized that the employees of the financial products unit needed some incentive to stay and that the contracts, being both ethical and useful, should be left to stand. That's probably why A.I.G. management assured us on three occasions during that month that the company would “live up to its commitment” to honor the contract guarantees.
That may be why you decided to accelerate by three months more than a quarter of the amounts due under the contracts. That action signified to us your support, and was hardly something that one would do if he truly found the contracts “distasteful.”
That may also be why you authorized the balance of the payments on March 13.
At no time during the past six months that you have been leading A.I.G. did you ask us to revise, renegotiate or break these contracts — until several hours before your appearance last week before Congress.
I think your initial decision to honor the contracts was both ethical and financially astute, but it seems to have been politically unwise. It's now apparent that you either misunderstood the agreements that you had made — tacit or otherwise — with the Federal Reserve, the Treasury, various members of Congress and Attorney General Andrew Cuomo of New York, or were not strong enough to withstand the shifting political winds.
You've now asked the current employees of A.I.G.-F.P. to repay these earnings. As you can imagine, there has been a tremendous amount of serious thought and heated discussion about how we should respond to this breach of trust.
As most of us have done nothing wrong, guilt is not a motivation to surrender our earnings. We have worked 12 long months under these contracts and now deserve to be paid as promised. None of us should be cheated of our payments any more than a plumber should be cheated after he has fixed the pipes but a careless electrician causes a fire that burns down the house.
Many of the employees have, in the past six months, turned down job offers from more stable employers, based on A.I.G.'s assurances that the contracts would be honored. They are now angry about having been misled by A.I.G.'s promises and are not inclined to return the money as a favor to you.
The only real motivation that anyone at A.I.G.-F.P. now has is fear. Mr. Cuomo has threatened to “name and shame,” and his counterpart in Connecticut, Richard Blumenthal, has made similar threats — even though attorneys general are supposed to stand for due process, to conduct trials in courts and not the press.
So what am I to do? There's no easy answer. I know that because of hard work I have benefited more than most during the economic boom and have saved enough that my family is unlikely to suffer devastating losses during the current bust. Some might argue that members of my profession have been overpaid, and I wouldn't disagree.
That is why I have decided to donate 100 percent of the effective after-tax proceeds of my retention payment directly to organizations that are helping people who are suffering from the global downturn. This is not a tax-deduction gimmick; I simply believe that I at least deserve to dictate how my earnings are spent, and do not want to see them disappear back into the obscurity of A.I.G.'s or the federal government's budget. Our earnings have caused such a distraction for so many from the more pressing issues our country faces, and I would like to see my share of it benefit those truly in need.
On March 16 I received a payment from A.I.G. amounting to $742,006.40, after taxes. In light of the uncertainty over the ultimate taxation and legal status of this payment, the actual amount I donate may be less — in fact, it may end up being far less if the recent House bill raising the tax on the retention payments to 90 percent stands. Once all the money is donated, you will immediately receive a list of all recipients.
This choice is right for me. I wish others at A.I.G.-F.P. luck finding peace with their difficult decision, and only hope their judgment is not clouded by fear.
Mr. Liddy, I wish you success in your commitment to return the money extended by the American government, and luck with the continued unwinding of the company's diverse businesses — especially those remaining credit default swaps. I'll continue over the short term to help make sure no balls are dropped, but after what's happened this past week I can't remain much longer — there is too much bad blood. I'm not sure how you will greet my resignation, but at least Attorney General Blumenthal should be relieved that I'll leave under my own power and will not need to be “shoved out the door.”
Sincerely,

Jake DeSantis

[asking]

By the way:
Yesterday's Wall Street Journal reported that AIG's infamous bonus division sued the federal government last month for $61 million in taxes they felt they should not have had to pay. Apparently, the IRS thought they were engaging in some questionable tax avoidance schemes. Now AIG is trying to get $61 million back.

[excon]

Hello, again:

---------------

Letter dated BEFORE the bailout.

Dear Mr. DeSantis:

Even though I've been told that AIG is too big to fail, I don't believe it, so I'm NOT going to bail you out.

Therefore, you're not going to get ANY bonus's and you'll be looking for work.

I'm sorry you chose to work for a company that was bankrupt. But that ain't MY fault.

Good luck,

Barack

PS: If, on the other hand, we decide to SAVE your job, there are strings attached. It's not going to be business as usual. I actually can't believe that you think it should be.

PPS: I also noticed in your letter, that you didn't even mention having been bailed out by the American taxpayer. Your arrogance, Sir, is noteworthy

-----------------
excon

[asking]

Well, that's the longest most self serving letter I've ever read.
It's perfectly sensible to leave when the trough is empty, I'll hand him that.

It's weird that he is COMPLAINING about not being paid, yet claiming that he willingly worked for $1/year for some reason, and then says he got $742,000, which he seemingly finds unsatisfactory. This is a guy who is so out of touch that he has no idea how he comes across to people who'd be delighted with the $42,000 in change.

[tomder55]

He agreed to work for $1 under the promise of bonus to help dismantle to company and perhaps help the American tax payers recoup some of the money lost to them in the bailout.

The American taxpayer through the whipped up frenzy of their elected officials have renaged. It will cost the American taxpayer more as a result. Perhaps Barney Frank or Chris Dodd feel more qualified than Mr. DeSantis to perform this function. Let them try.
Mr. DeSantis will go on to earn a living somewhere else. But we will end up paying more because AIG no longer has his expertise.

I wish Mr. DeSantis luck . No doubt the leash of wrath by Conn. AG Blumenthal will be loosed on him with the same vigor that was used when the public officials went after Joe the Plumber .

[tomder55]

Letter dated BEFORE the bailout.

Dear Mr. DeSantis:

Even though I've been told that AIG is too big to fail, I don't believe it, so I'm NOT going to bail you out.

Therefore, you're not going to get ANY bonus's and you'll be looking for work.

I'm sorry you chose to work for a company that was bankrupt. But that ain't MY fault.

Good luck,

Barack

PS: If, on the other hand, we decide to SAVE your job, there are strings attached. It's not going to be business as usual. I actually can't believe that you think it should be.

PPS: I also noticed in your letter, that you didn't even mention having been bailed out by the American taxpayer. Your arrogance, Sir, is noteworthy

Dear Mr. Obama ;
You are a person who has twice skirted public servant ethic rules by signing book contracts with advance bonuses prior to you entered public service.I do not expect you to understand honor and integrity .

I however would like to point out that if AIG had been allowed to go Chapter 11 there is a very good possibility that I would've been retained by the company and a bankruptcy judge to perform the services I have done for the last year under a similar compensation package to minimize losses and maximize recovery for legitimate stakeholders.

In the current case ;since the government assumed control ,I had assumed by doing this I was also performing a service that benefitted the tax payers... and I would've been right.

You have a reputation of throwing people under the bus after you have used them so I guess I should not be surprised that I am also a victim of your M.O. Perhaps this is why no one is rushing forward to fill all those empty slots in your administration.

Sincerely ,
Jake DeSantis

[excon]

I however would like to point out that if AIG had been allowed to go Chapter 11 there is a very good possibility that I would've been retained by the company and a bankruptcy judge to perform the services I have done for the last year under a simular compensation package to minimize losses and maximize recovery for legitimate stakeholders.

Hello again, Jake:

On this, we agree.

Once we (1) let your company grow too big to fail, we were (2) doomed no matter what we did. We (3) tried to rescue you, and by doing so, we (4) put our teat in the ringer.

Love,

excon, or Barack, or whomever.

P.S.> Look, I know you're not the DeSantis dude either. I can tell by the way you leave a space between the end of your sentences and the period.

[asking]

He agreed to work for $1 under the promise of bonus....

To me that's not really agreeing to work for $1/year. He contracted to get more. So he can't then claim he was working for a $1/year. That's disingenuous.

The fact that he feels that 3/4 million dollars is insufficient is a testament to his deep and unjustified sense of entitlement. His poor judgement in sending this letter to the New York Times is a measure of his incompetence. To me it reads like the whining of a spoiled brat who lost at Monopoly for the first time ever.

[tomder55]

He did not say that the compensation promised was insufficient. He rightly resents the treatment ;the threats that he and fellow AIG employees have been under since Congress whipped up a mob frenzy... and the renaging of his contract without cause.

[speechlesstx]

Fresh off his AIG fumbling, Geithner sent the dollar for a ride today after saying the US was open to China's suggestion for a move to "Special Drawing Rights" in place of the dollar.

It made some gains again once he "clarified" his remarks, nevertheless, haven't we already had enough amateurism for one administration during "the worst crisis since the great Depression?"

[tomder55]

Geithner has got to go!! Even Robert Rubin knew the Treasury Sec. job is to defend the currency. This is absolutely ridiculous given the fact that the President defended the dollar against the very suggestion of an international currency last night . Is Geithner deaf ? You would think that Geithner is listening to EXCON and is hoarding gold the way he is killing the dollar .Maybe Soros has him in a hypnotic spell . I don't know. It is baffling .

[speechlesstx]

Speaking of people that need to go...

Rahm Emanuel's profitable stint at mortgage giant

Don't you think Rahmbo needs to return his ill-gotten gains? Maybe Congress can pass a highly punitive targeted tax on the corruptocrats that ran Fannie and Freddie... starting at the White House.

[inthebox]

Hello, again:

---------------

Letter dated BEFORE the bailout.

Dear Mr. DeSantis:

Even though I've been told that AIG is too big to fail, I don't believe it, so I'm NOT going to bail you out.

Therefore, you're not going to get ANY bonus's and you'll be looking for work.

I'm sorry you chose to work for a company that was bankrupt. But that ain't MY fault.

Good luck,

Barack

PS: If, on the other hand, we decide to SAVE your job, there are strings attached. It's not going to be business as usual. I actually can't believe that you think it should be.

PPS: I also noticed in your letter, that you didn't even mention having been bailed out by the American taxpayer. Your arrogance, Sir, is noteworthy

-----------------
excon

Mr Obama,

You did not bailout AIG or anyone else. Congress has allowed the taxpayors of this generation and future generations to bear that burden. Your lack of experience is overshadowed by your incredibly incompetent pick of Mr Geithner, and by your arrogance.

I understand that the AIG situation has provided a perfect cover for your agenda to expand the power and control of your form of government.

I would challenge you to donate your personal presidential salary, which I remind you is paid by we the taxpayors, to those devastated by this economic disaster you are presiding over.




Mr DeSantis






G&P

[450donn]

Good luck with that one!
Remember there are the haves and the have not's. Those of the East coast elite and anyone in Government is clearly the haves. Those of us that are being forced against our will to pay the ever increasing burden to support the have's are the have not's. Clearly we will all be on the communal farms within the next 10 years.
For a glimpse of what this country will look like in about fifteen years one need to only look to our neighbors to the south.

[excon]

For a glimpse of what this country will look like in about fifteen years one need to only look to our neighbors to the south.

Hello again, 450:

I LOVE tacos.

excon

[450donn]

Do you also love mud floored huts with no heat, no running water, and no toilets?