Okay, that is a fallback position. The AIG bastards should be paying us not to be in jail, but if the Obama administration is not prepared to push the legal envelope to take back the bonuses, it can simply tell the private shareholders that the bonuses are coming out of their pocket.
This one is pretty simple. Private shareholders still own 20 percent of the company. The market capitalization is $2.6 billion. The 20 percent stake ($520 million) can easily cover the $165 million in bonuses.
So, the deal is the company issues enough new shares to cover the cost of the bonuses with the government being issued enough shares to hold its stake constant. That puts the burden of paying these suckers on the private shareholders.
Then we go after Citi, Goldman, Bank of America and the rest and tell these bankrupt banking giants that they are going to bring their pay down to earth immediately, as we make plans for their conservatorship.