Bonuses for bailed out companies Options

[dauss]

So, I'm trying to think of an example that would be close to the situation that AIG is facing to get a gauge on this particular situation.

Let's pretend that Brinker International Restaurants(Chili's, Maggiano's, On the Border, and Romano's Macaroni Grill) got a bailout with your tax dollars because they're in financial trouble. So, let's also pretend that one of their concepts was the main cause for all their profit loss, On the Border in this hypothetical case. So, On the Border has such massive losses that it causes Brinker to have to report a loss for the fiscal year.

Now, let's just say that you work for Chili's and don't really have any connection to On the Border because that's a different division. You've been doing your job and Chili's, Romano's, and Maggiano's not only made budget, but actually had profit for the last year. Should you get bonus, along with the guys from Romano's and Maggiano's?

[Hartmann]

There are three questions here.

1. Should the government bailout not have included the clauses that allowed for bonuses?
2. Is AIG in some way obligated to run their business differently simply because they received government money?
3. Is the end-around that the government is pulling a bad idea or even legal?

I seem to think that the problem starts at the top. Fine, Congress, you want to bail them out, do it but don't put clauses in there simply because they were one of the largest contributors to the campaign. Secondly, AIG is a business and they do not have an obligation to the taxpayers to not provide bonuses. Now, out of the goodness of their hearts, they could have chosen a different path.

The taxing of the bonuses at 90% is a shady move in my opinion and borders on unconstitutional. There was a President not too long ago that tried to change tax rates on certain people and he was forced to resign, claiming he wasn't a crook.

I just can't believe so many people are getting so worked up about all of this. The $$$ that was given out as bonuses pales in comparison to what has been proposed as the stimulus package. We're on the verge of bankruptcy and people are worried about pennies rather than the $500 bills falling out of the sky.

The publisher of Forbes was doing an interview this morning and made an obvious comment that no one else had mentioned, why did the government not do these negotiations behind closed doors and try to solve this problem without involving American citizens. People are going to these AIG employee's homes and protesting. Give me a break.