The Treasury violated its rules on executive pay as it went 18 for 18 in approving raises for AIG and GM execs over the past few years, according to SIGTARP. Treasury was warned of this a year ago, but disputes the report's findings. [View news story]
What if all the raises were justified and within normal corporate guidelines? These AIG executives were responsible for the successful turnaround of the company. People who have never had to manage a business and who envy the pay scales of the corporate world want to decide how people should be compensated. It is a sad time in America. The underachievers are ruling the day.
Trash Seems to Be King, As Lehman Shares Surge [View article]
Agree Yushi...Goldstein and others on this blog have been on the sidelines the past six months predicting gloom and doom...sour grapes about AIG,C, and all the other companies they bad mouthed..... The S&P has gone wild! I love it!
Why don't you get a life or at least educate yourself on AIG. Have you ever worked for a corporation or are you like 99% of the "sports" writers who cannot even walk and chew gum?
AIG Exec Departures: What a Surprise! [View article]
Mr. Ed you hit all the points right on the mark. I ask you to do some research into the Madoff freebie. It is a travesty for the American tax payer..... to the tune of billions of dollars. No one felt sorry enough to make such a quick tax code change to past Ponzi and fraud victims all across America.
Dato
IRS giving relief to some Madoff investors By MARCY GORDON, AP Business Writer
WASHINGTON – The Internal Revenue Service issued guidelines Tuesday that will allow tax relief and refunds for some Bernard Madoff victims who were levied for investment earnings that turned out to be nonexistent.
IRS Commissioner Douglas Shulman told Congress the guidelines are for taxpayers who have suffered losses from Ponzi investment schemes such as the massive Madoff swindle.
Madoff investors should have reported earnings from their investments with him through the years and thus paid taxes on those earnings. Given that some of those were “phantom” profits, investors have said they should be entitled to refunds of the taxes they paid.
Investors in some of these cases are entitled to a “theft-loss” deduction, not subject to the limits on normal capital losses from investments, according to the IRS guidelines, Shulman testified at a Senate Finance Committee hearing.
The theft-loss deduction can be taken in the year a fraud is discovered, except to the extent an investor has a “reasonable prospect” of recovering the lost money, Shulman said.
Determining the amount and timing of losses from Ponzi schemes is “factually difficult” and it can take years to determine the prospects for recovering the lost money, he noted.
In Ponzi schemes, early investors are paid returns from money put in by later investors.
“Some taxpayers have argued that they should be permitted to amend tax returns for years prior to the discovery of the theft to exclude the phantom income and receive a refund of tax in those years,” Shulman testified. The new IRS guidelines do not address that argument, he said.
Sen. Charles Schumer, D-N.Y., a member of the Finance Committee who has been pushing for tax relief for victims of Ponzi schemes, said that with the new guidelines the IRS “has done the right thing here.”
“In most every area where there was a major dispute, they have sided with the victims,” Schumer said. “These victims were not only sophisticated financial professionals, but also ordinary people who believed they were making safe, responsible investments for their future. The steps announced today mean victims won’t owe taxes on income they never received.”
To date, about $1 billion in assets have been identified for Madoff investors, a tiny portion of the $65 billion he told his 4,800 investors that he had on hand in November. Authorities say they believe the figure included what would have existed if much smaller original investments had grown for decades.
By some estimates, the IRS could be out as much as $17 billion in lost tax revenue from refunds to investors who earned fictitious profits in the Madoff scheme.
The 70-year-old disgraced money manager and former chairman of the Nasdaq Stock Market has been living in a small cell at the Metropolitan Correctional Center in lower Manhattan since he pleaded guilty Thursday to securities fraud, perjury and nine other charges. He could be sent to prison for up to 150 years at a June sentencing.
The Securities Investor Protection Corp., the industry-funded organization that steps in when brokerage firms fail, has begun sending out the first checks to Madoff victims. Investors are eligible for up to $500,000 from the organization and have until July to file claims.
Around $1.6 billion or so is currently available to SIPC.
Shulman said that investors should deduct the $500,000 they receive from SIPC from the amount they claim as a “theft loss” from their Madoff investment.
The IRS expects that statements provided to investors by Madoff’s fund, showing the amounts they invested, should be sufficient documentation to establish losses for filing tax claims, he told the hearing.
On Mar 27 04:10 AM Mr. Ed, Jr. wrote:
> Do AIG employees deserve bonuses ? > > "Deserves got nothin to do with it." > Clint Eastwood in "Unforgiven" > > > This is about what we are in danger of becoming, as a people. <br/> > > YOUR Treasury Secretary and YOUR Congress explicitly authorized the > AIG bonuses. They knew all about the bonus situation (even helped > create it) and could have and should have stopped it. When the bonuses > became known to the public, what did Dodd and Gaithner do ? They > lied about it. Flat out lied. Then they got caught in their lies, > and suddenly we have an "outraged" President and a house of Representatives > that passes a dispicable, disgraceful and unconstitutional Bill of > Attainder, targeting a small group of citizens to steal their property. > > > The clown whose fingerprints are all over this crisis, Barney Frank, > holds yet one more dog & pony show demanding the names of those > who received bonuses, and refusing to promise CEO Liddy that he will > not release those names to the public. > > And then we have death threats against AIG employees, and a group > of real morons/agitators starts a bus tour of AIG exec homes. > > The first people that need to be dealt with in this mess are the > incompetents in our government who approved those bonus contracts > and then lied to us. And, by the way, these are the very same incompetents > and thieves who have been playing the taxpayers for suckers for decades, > while letting their buddies like Raines, Johnston and Gorelick loot > Fannie and Freddie for over $100 million. > > The employees at AIG receive their bonuses after they complete their > employment contract. Most had absolutely nothing to do with the financial > mess, and , to my knowledge, none of them publicly and repeatedly > lied to us like our representatives did. They may not have "earned" > a bonus in the eyes of many (myself included), but they honored their > contracts and they didn't lie to us like Dodd and Gaithner. > > The outrage about the bonuses is justified-- but it is seriously > misdirected. > > > > > >
AIG Exec Departures: What a Surprise! [View article]
How much an hour do you think lawyers make?
Dato
On Mar 26 09:18 PM elwhip wrote:
> 14</span> hour days.. for <span title="Convert this amount" class="currency_conver... > </span> days a week = <span title="Convert this amount" class="currency_conver... > </span> hours. Say, <span title="Convert this amount" class="currency_conver... > </span>. Assume <span title="Convert this amount" class="currency_conver... > </span> weeks a year - no vacations with the fam. That's <span title="Convert > this amount" class="currency_conver... hours a > year - into - say - $ <span title="Convert this amount" class="currency_conver... > </span>million.. That's still approx $<span title="Convert this amount" > class="currency_conver...
AIG Exec Departures: What a Surprise! [View article]
We are so concerned about giving bonuses ...how about the bonuses given to Maydoff investors who were given quick and quiet treatment to write off capital losses as "property theft Loses".?
Yes, a quick and quiet tax law change lead by NY Senator Schumer.
It is estimated to cost the American tax payers 17 Billion dollars in tax revenues. Yes, that is a B! A gift to the richest of the rich who line AIA in their Palm Beach Mansion's.
Seems America's economic down fall..was precipitated by little ole AIG. One company is to blame for the the most powerful countries economic and political downfall!
Perhaps the American system is the real house of cards?! Yes, I also weep for this country after reading some of the comments above.
Folks it is what it is. AIG renegotiated a good deal..... considering.
Liddy is a class act. The future. Hank is history. Problem is he is the only guy who does not know it.
AIG, has quality management.....AIGFP aside. They only owe about 35 Billion at this point and can pay it down systematically. Then they will be in a position to renegotiate the equity equation and perhaps pay down the perpetual preferred.
I am glad to see the government and tax payer make a profit on the two SPV's and not some hedge fund creep.
BofA, Lehman, AIG: The New Financial Realities [View article]
So there is no fall out from Lehman? See nothing happens when we allow these big financial institutions to fail! Next a run on uninsured MM's. AIG is a national corporate treasure...If they file tomorrow, it will destabilize the markets world wide....and as important, embarrass the USA world wide. I live and work over seas. If you could see the view from the outside looking in, it would sadden you.
Money market giant freezes redemptions By Sam Mamudi Last update: 5:19 p.m. EDT Sept. 16, 2008 Comments: 53 NEW YORK (MarketWatch) -- One of the first and largest money market funds has put a seven-day freeze on redemptions after the net asset value of its shares fell below $1. Primary Fund (RFIXX: RFIXX News, chart, profile, more Last:
BofA, Lehman, AIG: The New Financial Realities [View article]
You seem to have lying on the brain. I am talking about contagion. Not conjuring up some half brain "He allowed 9/11 as an excuse to go into Iraq" theory! When the fools get done allowing the Financial System to implode, you will not have to worry about McCain funding the next war! There will be no $ in the till and unemployment will be 20%!
BofA, Lehman, AIG: The New Financial Realities [View article]
America is in a self destruct mode. Our enemies...remember them?....remember what buildings were targeted?....they are stoking the fires to bring us to our knees...bankrupt the system...depression...... the revolution...violence.... play right into their hands.
Jerks making flippant remarks such as yours. You are talking about tens of thousands of families being shattered. So stop being so cute. You have not been around long enough to understand what really is going on and how it can effect our country. Probably never had to make a business result in the real world. Talk it but cannot walk it.
Bib Laden is laughing at our lust for greed and self destruction. We play into his grand plan. If the distorting shorts are not stopped the system will collapse and the next world wide depression will be a very violent one. Americans must wake up.
The Treasury violated its rules on executive pay as it went 18 for 18 in approving raises for AIG and GM execs over the past few years, according to SIGTARP. Treasury was warned of this a year ago, but disputes the report's findings. [View news story]
Trash Seems to Be King, As Lehman Shares Surge [View article]
Time to Read the Riot Act to AIG [View article]
Why Did AIG Rally Yesterday? [View article]
AIG Exec Departures: What a Surprise! [View article]
Dato
IRS giving relief to some Madoff investors
By MARCY GORDON, AP Business Writer
WASHINGTON – The Internal Revenue Service issued guidelines Tuesday that will allow tax relief and refunds for some Bernard Madoff victims who were levied for investment earnings that turned out to be nonexistent.
IRS Commissioner Douglas Shulman told Congress the guidelines are for taxpayers who have suffered losses from Ponzi investment schemes such as the massive Madoff swindle.
Madoff investors should have reported earnings from their investments with him through the years and thus paid taxes on those earnings. Given that some of those were “phantom” profits, investors have said they should be entitled to refunds of the taxes they paid.
Investors in some of these cases are entitled to a “theft-loss” deduction, not subject to the limits on normal capital losses from investments, according to the IRS guidelines, Shulman testified at a Senate Finance Committee hearing.
The theft-loss deduction can be taken in the year a fraud is discovered, except to the extent an investor has a “reasonable prospect” of recovering the lost money, Shulman said.
Determining the amount and timing of losses from Ponzi schemes is “factually difficult” and it can take years to determine the prospects for recovering the lost money, he noted.
In Ponzi schemes, early investors are paid returns from money put in by later investors.
“Some taxpayers have argued that they should be permitted to amend tax returns for years prior to the discovery of the theft to exclude the phantom income and receive a refund of tax in those years,” Shulman testified. The new IRS guidelines do not address that argument, he said.
Sen. Charles Schumer, D-N.Y., a member of the Finance Committee who has been pushing for tax relief for victims of Ponzi schemes, said that with the new guidelines the IRS “has done the right thing here.”
“In most every area where there was a major dispute, they have sided with the victims,” Schumer said. “These victims were not only sophisticated financial professionals, but also ordinary people who believed they were making safe, responsible investments for their future. The steps announced today mean victims won’t owe taxes on income they never received.”
To date, about $1 billion in assets have been identified for Madoff investors, a tiny portion of the $65 billion he told his 4,800 investors that he had on hand in November. Authorities say they believe the figure included what would have existed if much smaller original investments had grown for decades.
By some estimates, the IRS could be out as much as $17 billion in lost tax revenue from refunds to investors who earned fictitious profits in the Madoff scheme.
The 70-year-old disgraced money manager and former chairman of the Nasdaq Stock Market has been living in a small cell at the Metropolitan Correctional Center in lower Manhattan since he pleaded guilty Thursday to securities fraud, perjury and nine other charges. He could be sent to prison for up to 150 years at a June sentencing.
The Securities Investor Protection Corp., the industry-funded organization that steps in when brokerage firms fail, has begun sending out the first checks to Madoff victims. Investors are eligible for up to $500,000 from the organization and have until July to file claims.
Around $1.6 billion or so is currently available to SIPC.
Shulman said that investors should deduct the $500,000 they receive from SIPC from the amount they claim as a “theft loss” from their Madoff investment.
The IRS expects that statements provided to investors by Madoff’s fund, showing the amounts they invested, should be sufficient documentation to establish losses for filing tax claims, he told the hearing.
On Mar 27 04:10 AM Mr. Ed, Jr. wrote:
> Do AIG employees deserve bonuses ?
>
> "Deserves got nothin to do with it."
> Clint Eastwood in "Unforgiven"
>
>
> This is about what we are in danger of becoming, as a people. <br/>
>
> YOUR Treasury Secretary and YOUR Congress explicitly authorized the
> AIG bonuses. They knew all about the bonus situation (even helped
> create it) and could have and should have stopped it. When the bonuses
> became known to the public, what did Dodd and Gaithner do ? They
> lied about it. Flat out lied. Then they got caught in their lies,
> and suddenly we have an "outraged" President and a house of Representatives
> that passes a dispicable, disgraceful and unconstitutional Bill of
> Attainder, targeting a small group of citizens to steal their property.
>
>
> The clown whose fingerprints are all over this crisis, Barney Frank,
> holds yet one more dog & pony show demanding the names of those
> who received bonuses, and refusing to promise CEO Liddy that he will
> not release those names to the public.
>
> And then we have death threats against AIG employees, and a group
> of real morons/agitators starts a bus tour of AIG exec homes.
>
> The first people that need to be dealt with in this mess are the
> incompetents in our government who approved those bonus contracts
> and then lied to us. And, by the way, these are the very same incompetents
> and thieves who have been playing the taxpayers for suckers for decades,
> while letting their buddies like Raines, Johnston and Gorelick loot
> Fannie and Freddie for over $100 million.
>
> The employees at AIG receive their bonuses after they complete their
> employment contract. Most had absolutely nothing to do with the financial
> mess, and , to my knowledge, none of them publicly and repeatedly
> lied to us like our representatives did. They may not have "earned"
> a bonus in the eyes of many (myself included), but they honored their
> contracts and they didn't lie to us like Dodd and Gaithner.
>
> The outrage about the bonuses is justified-- but it is seriously
> misdirected.
>
>
>
>
>
>
AIG Exec Departures: What a Surprise! [View article]
Dato
On Mar 26 09:18 PM elwhip wrote:
> 14</span> hour days.. for <span title="Convert this amount" class="currency_conver...
> </span> days a week = <span title="Convert this amount" class="currency_conver...
> </span> hours. Say, <span title="Convert this amount" class="currency_conver...
> </span>. Assume <span title="Convert this amount" class="currency_conver...
> </span> weeks a year - no vacations with the fam. That's <span title="Convert
> this amount" class="currency_conver... hours a
> year - into - say - $ <span title="Convert this amount" class="currency_conver...
> </span>million.. That's still approx $<span title="Convert this amount"
> class="currency_conver...
AIG Exec Departures: What a Surprise! [View article]
Yes, a quick and quiet tax law change lead by NY Senator Schumer.
It is estimated to cost the American tax payers 17 Billion dollars in tax revenues. Yes, that is a B! A gift to the richest of the rich who line AIA in their Palm Beach Mansion's.
Seems America's economic down fall..was precipitated by little ole AIG. One company is to blame for the the most powerful countries economic and political downfall!
Perhaps the American system is the real house of cards?! Yes, I also weep for this country after reading some of the comments above.
Dato
Greenberg's Chutzpah [View article]
Liddy is a class act. The future. Hank is history. Problem is he is the only guy who does not know it.
AIG, has quality management.....AIGFP aside. They only owe about 35 Billion at this point and can pay it down systematically. Then they will be in a position to renegotiate the equity equation and perhaps pay down the perpetual preferred.
I am glad to see the government and tax payer make a profit on the two SPV's and not some hedge fund creep.
Go AIG!
BofA, Lehman, AIG: The New Financial Realities [View article]
Money market giant freezes redemptions
By Sam Mamudi
Last update: 5:19 p.m. EDT Sept. 16, 2008
Comments: 53
NEW YORK (MarketWatch) -- One of the first and largest money market funds has put a seven-day freeze on redemptions after the net asset value of its shares fell below $1. Primary Fund (RFIXX:
RFIXX
News, chart, profile, more
Last:
BofA, Lehman, AIG: The New Financial Realities [View article]
When the fools get done allowing the Financial System to implode, you will not have to worry about McCain funding the next war! There will be no $ in the till and unemployment will be 20%!
BofA, Lehman, AIG: The New Financial Realities [View article]
Jerks making flippant remarks such as yours. You are talking about tens of thousands of families being shattered. So stop being so cute. You have not been around long enough to understand what really is going on and how it can effect our country. Probably never had to make a business result in the real world. Talk it but cannot walk it.
AIG: The Mark-to-Lehman Market [View article]