BAILOUT MONEY Used to Kill Jobs

The “Law of Unintended Consequences” Meets Big Bucks Bailout

New information pertaining to the billions in bailout funds given to American financial institutions has come light, shredding Washington’s carefully crafted meme that the money was needed to “ease credit” and exposing the shenanigans of AIG and JP Chase Morgan who received billions of tax payer funds.Coming on the heels of AIG’s bountiful 165 million bonuses to employees is the revelation that yet another bank bailout, JP Morgan Chase, is going to spend 400 million to outsource thousands of jobs to India.Of the 165 million in bonuses paid by AIG to employees, the Cleveland Plain Dealer is reporting that New York’s Attorney General Andrew Cuomo has managed to get the company to reveal how much it paid each individual and how many individuals were paid:

ALBANY, N.Y. — New York Attorney General Andrew Cuomo said Tuesday that troubled insurance giant American International Group paid bonuses of $1 million or more to 73 employees, including 11 who no longer work for the company.

Cuomo subpoenaed information from AIG on Monday to determine whether the payments made over the past weekend constitute fraud under state law. Contracts written last March guaranteed employees 100 percent of their 2007 bonus amounts for 2008, “despite obvious signs that 2008 performance would be disastrous in comparison to the year before,” Cuomo said.

Missing from the information supplied by AIG by way of a subpoena issued by Cuomo, the names of those who received the bonuses:

“AIG also claims that retention of individuals at Financial Products was vital to unwinding the subsidiary’s business,” Cuomo wrote. But AIG has been unwilling to provide their names, despite his subpoena for the list, making it impossible to test that claim, Cuomo said. He said his office will do “everything necessary” to get the information.”

Cuomo had this to say about those received a bonus:

“These payments were all made to individuals in the subsidiary whose performance led to crushing losses and the near failure of AIG,” Cuomo wrote. “Thus, last week, AIG made more than 73 millionaires in the unit which lost so much money that it brought the firm to its knees, forcing a taxpayer bailout. Something is deeply wrong with this outcome.”

Yet another financial institution who received a bailout of 25 billion of tax payer funds, JP Morgan Chase, has been caught out implementing a plan to outsource thousand of American jobs to India which would cost 400 million.

According to Jonathan Riskind of the Columbus Dispatch, Congresswoman Rep. Mary Jo Kilroy (D) of Ohio, along with 41 other Congressmen, all Democrats, including Rep. Barney Frank, Chairman of the House Financial Services Committee, have sent a letter to Jamie Dimon, the chief executive and president of JP Morgan Chase, demanding answers to Chase’s plan to spend 400 million to outsource thousands of jobs overseas to India.

“Any time a company that employs thousands in central Ohio mentions plans to outsource work, the Congresswoman will want answers,” Tencher said. “Central Ohio cannot afford any job loss and should not expect it from a company that took $25 billion from the taxpayer funded bailout.”

Barney Frank has been busy, not only did he co-sign the letter to Chase, but he also received a letter from Cuomo regarding the AIG bonuses:

“In a letter Tuesday to Rep. Barney Frank, chairman of the House Committee on Financial Services, Cuomo outlined the bonus and contract information and asked the panel to take up the issue at a hearing scheduled for Wednesday.”

Cuomo has taken some flack over his efforts to get answers from AIG as some have claimed it’s merely a matter of political maneuvering. Yet it was Cuomo who asked for and received very specific information regarding the AIG bonuses, something which the Obama administration and his Secretary of Treasury, Tim Geithner, have yet to accomplish.

What highly-unlikely claim did both Obama and Geither make in an attempt to mitigate the PR damage?

Continue reading: page 2 – JP Morgan Chase, 25 Billion Bailout Recipient, to Spend 400 Million to Outsource Thousands of Jobs to India

by LBG/Mondoreb

Mondoreb blogs at Death By 1000 Papercuts. Interested readers can e-mail him at All DBKP stories are filed under Mondoreb at BNN. This article is by LBG.

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