Where Was Congress on Bonuses in 2004?

obama/rainesNLPC issued a press release on December 29, 2004 that began:

Peter Flaherty today expressed surprise and disgust at the current attempt by fired Fannie Mae Chairman and CEO Franklin Raines to walk away with millions of dollars despite his central role in the accounting scandal rocking the company.

According to Flaherty, “At the time, I remember having very little luck in drumming up interest in this issue. I was a guest on a couple of local radio shows, but that was it. I made a round of calls to Capitol Hill but nobody wanted to do anything.”

The release continued:

Flaherty said, “Let me get this straight. Raines apparently cooks the books, brings disgrace to the company, and imperils Fannie Mae’s standing with regulators, the Congress and administration. So for his punishment he is made wealthy for the rest of his life?”

According to a December 27 Form 8-K

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Why Won’t Obama Stop AIG Bonuses?

AIG logoBarack Obama has shown no hesitation to wield the power of the state, but he claims that he’s unable to stop these outrageous AIG bonuses, even though taxpayers now own 80% of AIG.

Obama wants the government to dominate the health care and energy economies. He’s proposed huge new taxes to help finance expansion of the federal government. More to the point, he would allow bankruptcy judges to abrogate contracts as part of his mortgage bailout. His automaker bailout contemplates the setting aside or revision of UAW contracts.

It is astonishing that these bonuses will be paid to executives at AIG’s financial products division, the unit that wrote trillions of dollars’ worth of credit-default swaps. AIG placed bets on derivative trades that it could not possibly pay off if it lost. This is called fraud. These bad bets were big enough to bring down the financial system.

Instead of claiming … Read More ➡

Will Bailed-Out Companies Shell Out for Sharpton?

GM logThe 11th annual convention of Al Sharpton’s National Action Network (NAN) will take place April 1-4 in New York City. Last year’s event in Memphis had heavy corporate sponsorship. Of course, a lot has changed since then. Sponsors like Citigroup, Chrysler and General Motors have gone broke, kept alive by billions in taxpayer funds.

Healthier 2008 sponsors include Abbott Laboratories, Allstate, American Honda, Anheuser-Busch (since acquired by InBev), Chase Foundation, Colgate-Palmolive, Continental Airlines, Entergy, FedEx, Ford, Home Depot, Johnson & Johnson, PepsiCo, Pfizer, UPS Foundation and Wal-Mart.

At the event, Colgate-Palmolive accepted a “corporate excellence” award, prompting NLPC to ask the company to give it back. In a letter to Reuben Mark, the company’s Chairman, NLPC President Peter Flaherty called the award “a dubious honor indeed.”

In an April 22 letter defending the award, Mark asserted that the NAN convention was “broadly attended by a number of elected officials and … Read More ➡

Obama Should Focus on Bank Crisis Rather Than “Fake Populism”

NLPC President Peter Flaherty said today, “Excessive executive pay and perks are indeed a problem, as NLPC sought to highlight way before the financial meltdown. But the real scandal now is bank bailouts without end.

Citi logo

Instead of engaging in fake populism by trashing corporate travel to Las Vegas or the Super Bowl, Obama should produce a plan to deal with the banking crisis. Throwing more taxpayer money at AIG and Citigroup as they lurch from crisis to crisis is not a plan.  I am worried that by the time Obama and Timothy Geithner come up with a strategy, there will be no money left.

The tally for AIG is now $175 billion with no end in sight. AIG placed bets on derivative trades that it could not possibly pay off if it lost. This is called fraud. These bad bets were big enough to bring down the financial system. Obama … Read More ➡

Missouri Local Rigged Election, says DOL

U.S. Dep’t of Labor filed suit Jan. 4 to overturn the Jul. 1998 election of Service Employees Int’l Union Local 50 in St. Louis because bosses allegedly rigged the nominations. DOL charges that SEIU violated federal labor laws by failing to provide timely and adequate notice of nominations, using an unreasonable nomination procedure, refusing to provide information to a challenger and failing to assure a fair election. Local 50 president Don Rudd said DOL asked Local 50 to agree to a new election, but Rudd refused because DOL sought to change the nomination process. Rudd said Local 50’s bylaws “were all approved by our international union.” But SEIU said the bylaws weren’t in question; rather their application by Local 50 was.

Ex-Local 50 president Bill Stodghill, a past and possibly future adversary of Rudd, called it “a terrible day for labor when Local 50…would adopt undemocratic procedures. Anytime the government … Read More ➡

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