Obama Subverts Congressional Oversight

Seriously? We need to persuade companies "to participate in programs funded by the $700 billion" bailout? The White House thinks so.

Why? Well these "poor" companies "desperate" for government money only want the handouts if they don't come with restrictions about how they may squander the money. Perhaps they're reluctant to take any greater restrictions than those Congress saddled on AIG,: none. It seems financial oversight, like restrictions on lavish executive pay, is a deal-breaker for organizations otherwise willing to accept tax payer cash.

The accommodating Obama administration agrees and has added more bureaucracy to circumvent Congress' attempt at oversight and satisfy the financial demands of companies in need of federal funds. How now brown cow.

Silly me. I thought when a company needs to borrow money than the lender sets the terms and regulates how the money is spend. If a homeowner seeks a home loan, the money can't then be used to buy a car, send a kid to college or pay for fertility treatment. Money borrowed has use restrictions. Why should companies that need bailout bucks get a pass, especially when their only recourse is refusing to accept the money?

President Obama, using "a special-purpose vehicle" to blatantly ignore the terms of Congressional oversight is ingeniousness and insulting. Even the Bush administration decided to apply executive-pay limits to firms participating in the bailout program.

Govt Owns 80% of AIG. Why does it ask for records?

I'm confused about something. If a stakeholder owns 80% of a business, wouldn't that stakeholder have access to the company's transaction and financial records?

Yes? Of course it would? I thought so.

How is it different when the stakeholder happens to exist in the collective form of the American taxpayers, whose more than $170 billion dollars were used by the Federal Reserve to bailout a failing company: A.I.G

As this is the case, why did members of Congress have to beg for the names of "partner companies" to which A.I.G. further doled out the bailout money? And it appears, taxpayers and Congress only received this concession as means of distraction. A.I.G. released the names of its payees just after A.I.G. revealed nearly the billion dollars in bonuses it released to upper management in the particular division of the company that spawned a national disaster.

As an 80% shareholder in the company, the Federal government should get up off its knees and stop begging. Instead it should grab A.I.G. by the throat and promise to break its financial windpipe if the company doesn't get its act together.

See which companies
A.I.G disclosed as partners.

Forget Blondes, Looks Like Bailed-Out Banks Have More Fun

Excuse me, Northern Trust, but hosting a golf event (undeniably a sport for the wealthy) at the Riviera Country Club in L.A., paying for lavish parties with A-List entertainment and swag from Tiffany's and footing the bill for travel expenses and hotel accommodations for hundreds of guests with tax payer funds is not cool.

After the Chicago-based bank accepted $1.6 billion from our generous Congressional bailout, the bank decided to do some wealth spreading of its own: paying millions in sponsorship fees to the PGA and millions more on parties for its wealthy clients (most of whom Northern Trust flew in for the event).

Congressional oversight anyone? No? We're taking the banks word that it was only using the institution's "operating funds" to pay for the event. Well, Northern Trust, if you take more than a BILLION and a half dollars from Congress, it doesn't really make sense that your institution actually has disposable "operating funds." But it's likely that you might if you didn't consider spending millions on lavish parties or event sponsorships part of a bank's "operating expenses."

Shame on you Northern Trust. Shame on Congress too for handing the money over, the institutional irresponsibility rests with you equally. What's more outrageous? Northern Trust laid off 4% of its workforce in December: 450 workers.

Here are the highlights provided by TMZ:

- Wednesday, Northern Trust hosted a fancy dinner at the Ritz followed by a performance by the group Chicago.

- Thursday, Northern Trust rented a private hangar at the Santa Monica Airport for dinner, followed by a performance by Earth, Wind & Fire.

- Saturday, Northern Trust had the entire House of Blues in West Hollywood shut down for its private party. We got the menu -- guests dined on seared salmon and petite Angus filet. Dinner was followed by a performance by none other than Sheryl Crow.

There was also a fabulous cocktail party at the Loews. And how's this for a nice touch: Female guests at the Chicago concert all got trinkets from ... TIFFANY AND CO.

Congressional Free-for-All

Watching the open remarks of the House of Representatives today makes me cringe. The odd spattering of issues on which representatives spoke was striking. How do they jump from the Lunar New Year and the Year of the Ox, to the millions of relief funds for House bill HR1 to House Resolution 87 -- amending Title VII of the Civil Rights Act of 1964?

Also, where the heck are the Republicans? It seems Democrats are the only ones making statements and calling for votes. Glad to see our two party system is working out so well.