23 March 2009

Bonus Paid by Taxpayer?

It is clear that he has very strong views on the matter. On the Tonight Show with Jay Leno last week, President Obama explained in very simple terms the case of AIG. He explained that the company had been on the verge of tumbling like a pack of cards, and that if government aid had not been injected, the whole financial system would have been brought down. That the company then handed out large bonuses to staff caused not just shock but pure amazement to the President. He has already ordered the Treasury to investigate means to get the money back.

The argument has escalated as the White House makes moves to implement a tax plan that will reclaim the money handed out at AIG and other leading companies that have accepted billions of dollars' worth of taxpayers money./

Wall Street has reacted furiously, and has warned that if staff are forced to enter a money exchange with the government, there may be largescale walkouts, and that this would only cause an even bigger disaster. Some have argued that it is not fair to effectively 'punish' staff.

This argument will no doubt continue for some time as the drama unfolds...

No comments: