AIG sues US govt to recover tax money

[bascule]

http://www.washingtonpost.com/wp-dyn/content/article/2009/03/20/AR2009032003089.html

 

Seriously, do these people just want us to hate them?

 

AIG believes it overpaid the IRS, and it "has a duty to its shareholders, including the government and other shareholders, to insure that it pays the proper amount of taxes," spokesman Mark Herr said by e-mail.

 

Okay, so not only are they so incompetent that their company imploded, but they paid the wrong amount in taxes, and now they want that money back, after they've already been bailed out with government money.

 

Because the dispute pits the government against a company that has essentially become a ward of the government, the only clear winners are likely to be lawyers, legal experts said. The legal expenses could consume millions of dollars, they said.

 

I think it's time for AIG to die.

[Pangloss]

ROFL! Well there is a really high humor value here, for sure.

 

But in a way they're responsible to ME for making sure they pay the correct amount in taxes. Odd though that may sound.

[padren]

Seriously, do these people just want us to hate them?

 

I think it's time for AIG to die.

 

They are certainly heading that way. Here's a question - we can't let AIG die because then they'd default on payouts to a ton of other wall street companies, and we don't want that to happen, so...

 

What if we let them die, but proposed to "honor in some percentage" those payouts, so instead of money going to AIG to pay out their losses (you know, however much actually makes it there), those holding those contracts could get 'micro-bailouts' thereby surgically removing AIG's tentacles in the whole mess? The biggest issue I recall is that AIG offered "insurance" against specific securities dropping in value, and since they did drop it's not like any money we throw at AIG is going to be recovered in that department anyway.

[bascule]

They are certainly heading that way. Here's a question - we can't let AIG die because then they'd default on payouts to a ton of other wall street companies, and we don't want that to happen, so...

 

Most of the companies they owe money to already received bailouts themselves:

 

http://www.slate.com/id/2213942/

[Dudde]

I think it's time for AIG to die.

 

As much as I laughed and shared this article, I'm pretty down with that comment. Technically, if they really DO feel they overpaid taxes, they should be trying to get it back...I don't know if you can do that legally without suing. But then again ... at least it made me laugh

[Daecon]

The government should just tell them: "We already refunded all your taxes. You called it 'bailout'."

[ParanoiA]

I don't understand why members of a science forum are investing so much in specious reasoning. This is open and shut, fiduciary mechanics. Nothing to see here folks.

 

If they didn't do this, it would be blatant incompetence. They are right. They have a duty to their shareholders, and us, to get their taxes right. Whether they paid too much, or not enough.

 

Yeah, yeah, I get the whole bailout insult with tax payer money, yadda yadda yadda, and that still doesn't resolve voluntary incompetence; voluntary pissing money out the door "cause we're afraid the public might get super duper mad, now". All while we're judging them for....well, pissing money out the door.

 

Make up your minds. You want them to make money or not? They must make money for the bailout to be successful, so careful how you answer.

[Pangloss]

Well at the very least this points out that it's just another complication that can arise from bailouts. If we're going to have a problem with it then we need to plan in advance how we want to handle it, and build it right into the bailout agreement. Otherwise ignore it and move on.

[Dudde]

If they didn't do this, it would be blatant incompetence. They are right. They have a duty to their shareholders, and us, to get their taxes right. Whether they paid too much, or not enough.

~~~

Make up your minds. You want them to make money or not? They must make money for the bailout to be successful, so careful how you answer.

 

 

While I do agree that they have a responsibility to get those taxes from the government if in fact they really DID over pay - it was blatant incompetence that got them into that position in the first place. I understand companies calculate taxes wrong all the time, but they usually find out a bit earlier than this -

I think the main concern right now is that we're throwing billions of dollars at a financial institution that fails time and again to produce evidence of fiscal responsibility.

[bascule]

If they didn't do this, it would be blatant incompetence. They are right. They have a duty to their shareholders, and us, to get their taxes right. Whether they paid too much, or not enough.

 

Even if in the end only the lawyers profit, at the expense of the US government, the majority shareholder?

 

You have an awfully black and white view of things.

[Pangloss]

I don't think that's a black-and-white view any more than your view promotes the pitchforks and hangin' ropes. There's a lot of middle ground here, both in terms of what AIG could have done, and in terms of how the government can handle these situations. They do have a duty to their shareholders, which at the moment is mostly (80%) the American people, and much of the reaction is more media spin and public frenzy than clear thinking. Not to mention politicians dodging their own share of responsibility.

 

That's not to say that I think your position is wrong either. I just think the situation is complex and calls for thoughtful handling.

Edited March 29, 2009 by Pangloss