AIG Bonuses, why is this the government's business?

http://www.cnn.com/2009/POLITICS/03/16/AIG.bonuses/index.html

Obama on AIG:

"This is a corporation that finds itself in financial distress due to recklessness and greed." Obama told politicians and reporters in the Roosevelt Room of the White House, where he and Treasury Secretary Tim Geithner were unveiling a package to aid the nation's small businesses.

"Under these circumstances, it's hard to understand how derivative traders at AIG warranted any bonuses, much less $165 million in extra pay. I mean, how do they justify this outrage to the taxpayers who are keeping the company afloat?"

"All across the country, there are people who are working hard and meeting their responsibilities every single day, without the benefit of government bailouts or multimillion-dollar bonuses. You've got a bunch of small-business people here who are struggling just to keep their credit line open."

"And all they ask is that everyone, from Main Street to Wall Street to Washington, play by the same rules. That is an ethic that we have to demand."

How is what AIG doing any different than the members of congress voting themselves a pay increase in the Omnibus Bill?

After all the Congressional oversight committee for Fannie Mae and Freddie Mac was made up of mostly of the people who are now pointing the finger at the private sector.

What happened when the Republicans tried to pass legislation to create a new oversight committee for Fannie and Freddie? Remember these same people who are crying now were warned by many Republican members of Congress, and The Chairman of the Federal Reserve.

2005:

Congressmen Barney Frank(D-MA), Now chairmen of the house financial services committee:

"...The more people exaggerate, in my judgment, the threat of safety and soundness. The more people conjure up the possibility of serious financial losses to the treasury - which I do not see - I think we see entities that are fundamentally sound financially, and withstand some of the disaster scenarios. And even if there were a problem the federal government doesn't bail them out. But the more pressure there is there - then the less I think we see in terms of affordable housing.

Senator Charles Schumer(D-NY), Senate Banking Committee Hearing 2005:

"...I think Fannie and Freddie over the years have done a incredibly good job and are an intrinsic part of making America the best-housed people in the world... if you look over the last 20 or whatever years, they've done a very, very good job."

Greenspan has this to say, after Fannie and Freddie leaders admit major accounting errors. 02/17/2005:

"...Enabling these institutions to increase in size- and they will once the crisis in government passes - we are placing the total financial system of the future at a substantial risk".

The Chairman of the Federal Reserve warned these same people in 2005 that a disaster was in the making!

So who is it that is getting rewarded for failure? AIG had already entered these contracts long before the bailout money was awarded. AIG is simply trying to avoid a series of lawsuits.

Why do the members of the private sector get scrutinized for their actions, but the members of Congress get a free pass? What is the message here? corporations are evil, but government is good? Why do people automatically think that members of government always have the people's best interest at heart? I think it's clear here that the opposite is true. This is a deliberate effort to demonize the private sector, and focus attention away from the - just signed - Omnibus Bill with 8,500 earmarks.

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