Not long ago on Slabbed, Longshanks said the American people were in reality slaves…

And when you read the Rolling Stones article on Wall Street being completely above the law you’ll understand why you see names like Brooksley Born, Judge Jed Rakoff, AIG and crooked CEO John Mack in our archives. And sadly, I’ve concluded Longshanks is probably right, we are becoming economic slaves to financial interests and that the sheeple are too self-absorbed and ignorant to understand that basic fact. It also explains why I have little respect for sham regulators like Jim Donelon and Mike Chaney or the rest of the corporate do bitches that populate the Republican party. The Democrats aren’t any better though their rhetoric doesn’t come across as quite so clueless.

Perhaps this is why discriminating bloggers call folks like House Speaker John Boehner a dumb fuck for talking about repealing the weak financial re-regulation bill that passed last year. Meantime the Hollow One, $tung by critici$m about being too hard in Wall Street, is now genuflecting before CEOs like John Mack $pit $hining their $kin flute$.  Ain’t 2 party politics swell!

Hat tip to Editilla and Dambala.

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Slabbed news miscellany: AROD remanded without bond. Backlash against government subsidized property and casualty insurers. UPDATED with scoop from the Ladder – Dr. Van Heerden filing suit against LSU!

We have so much going on here at Slabbed right now we could literally spend all our waking moments authoring posts on the various topics we’re covering but since Nowdy, Bam Bam and I all have day jobs that won’t happen. In order to save a bit of time I’m combining today’s other news in one post thus the title. Nowdy will be along later to chip in her two cents.

We start with a reader tip on Ashton O’Dwyer, a troubled man who now is in deep trouble. He has been remanded to federal custody without bond. Hopefully he is also being pumped full of meds and receiving some badly needed counseling.

Next up and certainly in keeping with today’s theme of folks that are delusional, here is a story from the National Underwriter on that Property Casualty Insurers Association of America meeting held last month in San Antonio which we began profiling yesterday. This report, written by my main man Sam Friedman, covered the remarks of David Sampson, president and chief executive officer of the Property Casualty Insurers Association of America. Here are some excerpts:

Property and casualty insurers could easily be trapped in the “wave of political populism” sweeping the country in the wake of the nation’s economic and leadership crises, an insurer association leader warned.

“Many may believe that because people are so focused on bashing the bankers and Wall Street that the public and politicians will leave insurers alone, but I am not so sanguine,” said David Sampson, president and chief executive officer of the Property Casualty Insurers Association of America.

Of course Mr Sampson is not so sanguine as he certainly is aware the public is paying attention even though his script is not based in any sort of reality as we continue: Continue reading “Slabbed news miscellany: AROD remanded without bond. Backlash against government subsidized property and casualty insurers. UPDATED with scoop from the Ladder – Dr. Van Heerden filing suit against LSU!”

Will someone in a position of authority PLEASE put a bullet in AIG’s head and stop both the misery and insanity

If there is one reason (besides that special interest infested monstrosity also known as Health Care Reform) that the Democrats will get their asses kicked at the polls come November I’ll give it to you in 3 letters: A.I.G.

It’s bad enough the the company is insolvent and taxpayers will never see a return of all the money we sank into that bottomless snake pit, but to actually pay more bonuses to the dumb mother fuckers that caused the implosion of both AIG and our financial system simply defies description. Up next will by Timmy Geithner hitting the airways talking contract sanctity. Marketwatch has the story:

In the midst of bonus season, the people deciding compensation policy at American International Group Inc. believe they’ve reached a deal. The majority of the controversial financial-products group at the company will take a 10% haircut on their bonuses in return for an early payout, as soon as next week. Read AIG bonus story in WSJ. Continue reading “Will someone in a position of authority PLEASE put a bullet in AIG’s head and stop both the misery and insanity”

Additional evidence the insurance crowd in New York marches to the beat of a different drummer

You’d think after the first time AIG paid fat executive bonuses while borrowing billions from the Treasury because of their habit of “tatooing” toxic paper they would have learned. Nope, seems the gang thinks they deserve extra for their fine work cratering the financial system in 2008. So while the nations unemployment rate skyrockets to 10% thanks to Wall Street greed millions in taxpayer dollars will be paid to the people who brought you this disaster.

D-I-S-C-O-N-N-E-C-T

Here is the Reuters story courtesy of Yahoo Finance:

American International Group (NYSE:AIG – News) is preparing to pay next week millions of dollars more in bonuses to dozens of corporate executives, a source familiar with the development said.

AIG has been talking with Washington’s newly-appointed compensation czar Kenneth Feinberg about the bonuses, which are due to be paid on July 15, said the source.

The company is reviewing its compensation plans with Washington as it tries to avoid the national furor set off by $165 million in retention bonuses paid to employees of a financial products unit in March. Much of AIG’s $99 billion in losses last year stemmed from derivatives written by that unit. Continue reading “Additional evidence the insurance crowd in New York marches to the beat of a different drummer”

that special relationship of trust and a deep sense of betrayal

Insurance is a very special product. You pay and you pay and you pay premium dollars, often for your entire life. In return you only get a promise. A promise that if you ultimately have a covered claim, and you’re paid up, they must pay that claim. The problem is that they must have that money, for years and years, kept safely and invested legally in order to be able to pay your claim if they so choose. It’s that special relationship of trust that imposes on an insurance company an obligation of truthful financial reporting in their financial statements.

If you, too, consider insurance a very special product, as you read AIG CEO formerly headed up Allstate insurance company you will see how the industry’s conduct following Hurricane Katrina caused that special relationship of trust to become a deep sense of betrayal.

To many on the Gulf Coast, watching AIG chief executive officer Ed Liddy talk about the sanctity of contracts in defending the award of $220 million in bonuses to employees at the embattled insurer was an ironic moment.

If only Liddy held that same view of contractual obligations to policyholders after Hurricane Katrina when he was at the helm of Allstate, Louisiana’s second largest insurer.

“How about that?” quipped Bob Hunter, a New Orleans native who is director of insurance at the Consumer Federation of America and the author of a 2007 study documenting the decline of claims payout ratios at Allstate during Liddy’s tenure. “He’s always disregarded contracts to maximize profits.”

Liddy was appointed by the federal government in September to run AIG when the ailing insurer got its first installment of taxpayer bailout money, which now totals $170 billion.

Before caving to pressure on Wednesday and saying that he would ask those who received more than $100,000 in bonuses to return half of the money, Liddy argued that the money needed to stay where it was because contracts are sacrosanct.

That Liddy was forced to cave in to pressure is eye for an eye– justice to policyholders pressured to settle for less coverage than they purchased.  Many had to fight for even that; and, sadly, some still are. Continue reading “that special relationship of trust and a deep sense of betrayal”