[EBH]

According to Sherman today in the debate...next week.

Bonuses, commissions, even employee of the week rewards...

Really, he said they needed to come back and revisit all these types of compensation next week. Because people would find some other way around congress to reward people.

[Arizona Carolyn]

Congress has no business in the compensation business... they should not even be in the AIG business. According to Hank Greenburg (who should know) all the fed needed to do was put up guarantees. Why did they need guarantees? Because when Greenburg was forced out of AIG they lost their tripple A rating and AIG was then required to put up a higher level of equity due to the downgrade from Tripple A.

According to Greenburg, it wasn't the contracts AIG held that were all bad rather they had too many contracts to cover when they were required to put up additional equity for the contracts due to the downgrade... all the Fed really needed to do was act as a backup guarantee to AIG on the contracts. Instead AIG received TARP and then funneled the money through to the chute to satisfy equity requirements -- many of which were foreign banks.