Topic: Aig Bonuses

AIG is preparing to distribute a new round of retention bonuses averaging $50,000 per employee, including non-executive staff. Concurrently, court documents reveal that Federal Reserve Chairman Ben Bernanke and former Treasury Secretary Henry Paulson were aware of billions in bonuses at Merrill Lynch before its acquisition by Bank of America, contradicting their previous testimony to Congress. Public apathy toward these financial scandals is contrasted with the high level of compliance at airport security.

As Bernard Madoff's June 17 sentencing approaches, the hosts speculate on the location of the missing $50 billion. They suggest a "hustle" where investors were insured by AIG, which was subsequently bailed out by taxpayers, effectively covering the Ponzi scheme's losses with public funds. Curry predicts the eventual creation of an international banker's court to handle such financial crimes.

The House of Representatives passed an emergency bill to tax AIG bonuses at a 90% rate, a move described by some as un-American and a targeted legal attack. The hosts suggest the public outrage over bonuses serves as a distraction from larger sums of money moving through government channels.

The discussion shifts to the $170 million AIG bonus scandal, which is characterized as a distraction from billions in taxpayer funds flowing through AIG to counterparties like Goldman Sachs. Former New York Governor Elliot Spitzer is cited for his analysis of how AIG functioned as an insurance conduit for bad money deals. Questions are raised regarding why the U.S. government only owns 80% of the company rather than full nationalization.

Public outrage over $165 million in bonuses paid to AIG executives despite government bailouts is highlighted. The hosts discuss the "Summer of Rage" meme, suggesting that the government may actually want to provoke rioting as a pretext for military intervention or the use of detention camps.