March 17-2009:
Could The Obama Administration Recoup The 120 Million Dividend Payout From AIG?
I don't think that the Obama administration has a valid legal case with AIG, in terms of recouping the 120 million dollar dividends.
Because that was a 'contract of service' that these recipients had with AIG. And asking the recipients to give back or not receive these dividends will be a violation of that contract.
As I see it, if that aspect of the contract was there before the State became the majority stake holder of AIG, then those dividends will have to be re-negotiated, or declared null and void. Because
(I presume), that there would have been the expectation of the Obama administration, that AIG, as recipients of the Public's Money, would not use same to indulge in any monetary transactions that would imply, that they were irresponsible managers of the Public Money or Public trust.
Finally, the recipients of the dividends (if they haven't received it as yet), can refuse to do so, or accept half or part of that payout voluntarily. But it up to them to decide.
Incidentally, stock brokers income are also called dividends. This is just like working from 8.00 am to 4.00 pm on a daily basis. But instead, are paid for their skill at bringing in revenue for their client's investments!
Any action to recoup any dividend payouts might entail a lengthy legal battle with (AIG or the State) vs AIG's clients.
Derryck.
NYC
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