Fire Barney Frank first, AIG executives next

For the first time in my politically-aware life, I have found myself in a very awkward and precarious position: agreeing with Rep. Barney Frank. Being a staunch conservative, I often thought hell would freeze over before Frank and I could find common ground on any political issue.

I guess it’s time to grab my snowboard and take the next bus straight to hell (or the fourth district of Massachusetts, which is Frank’s congressional district).

In response to AIG handing out $165 million in contractual bonuses to several employees a few weeks ago, Frank, who is the chairman of the House Financial Services Committee, said, “Since the federal government … now essentially owns that company, maybe it’s time to fire some people.”

As soon as I heard Frank utter these words, my mouth started to water. Frank didn’t stop there, however.

Speaking of the same bonuses, The DC Examiner reported that Frank said, “If I have to personally auction off every Lear Jet, Herman Miller chair and Cuban cigar in the offices of every firm that got a federal bailout, we’re getting that cash back and then put it in the care of people who know how to handle money.”

It’s amazing how someone who has been wrong most his life on almost every subject seems to have the right idea on this one. Frank believes it “nonsensical” to reward failure and provide bonuses to those who are too incompetent to untangle the current financial crisis he believes they created. He also believes those responsible should pay somehow. Again, another good point for Frank.

I agree with Frank in principle, but I wonder if we agree in real life. What is Frank’s definition of incompetence and what does it mean to him to reward failure? Would Frank reward a company that needed $10 billion in bailouts? Or what if that company needed $11 trillion in bailouts? What if this company was a co-op and each member had a debt of $36,000 on his or her head? Would he bail them out or fire the executives of that company?

This is the company of the United States government, which is so far in debt, that hopes of repayment in the next century dwindle with every piece of legislation proposed by President Obama. The president and the Democrat-controlled Congress are spending the people of the United States into oblivion, trusting those who got us in this mess to get us out; namely, Frank.

In this “Bailout Era,” the government bailed out lenders Fannie May and Freddie Mac to the tune of $25 billion, though Forbes.com reported it may balloon to $100 billion.

These failing quasi-governmental institutions are the same ones that Frank defended on an oversight panel in 2003 when he said, “People conjure up the possibility of serious financial losses to the Treasury, which I do not see.”

According to the Tax Policy Blog, Frank saw “entities that are fundamentally sound financially.”

Frank’s complete lack of foresight and understanding of the oncoming fall of Fannie and Freddie demonstrated his ineptitude and incompetence. I don’t believe that our leaders – and I use that term loosely – should have crystal balls and see the future, but I refuse to give the power of the governance my country to someone who is such a hypocrite and failure.

In Frank’s own words “maybe it’s time to fire some people.” Frank first, AIG executives next.

DUSTIN HURST
Arbiter Journalist

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