AIG is scum!
March 14, 2009 | This is simply intolerable: AIG, still in business only because the US government has poured over $170 billion into the company, is going to pay bonuses to executives in the very part of the company that brought down AIG and the world financial system with it.
The bulletin from the New York Times was shocking and utterly dismaying:
A.I.G. to Pay $100 Million in Bonuses After Huge Bailout
Despite being bailed out with more than $170 billion from the Treasury and Federal Reserve, the American International Group is preparing to pay about $165 million in bonuses to executives in the same business unit that brought the company to the brink of collapse last year.
The geniuses in the AIG Financial Products group are the ones who dreamed up the so-called "credit-default swaps" behind the collapse of the financial system. Now they will get bonuses!
Edward M. Liddy, the current head of AIG, appointed by the US government, wrote to Tim Geithner, Secretary of the Treasury, that AIG is legally obligated to pay the bonuses, and in any case must do so to retain talent:
We cannot attract and retain the best and the brightest talent to lead and staff the A.I.G. businesses - which are now being operated principally on behalf of American taxpayers - if employees believe their compensation is subject to continued and arbitrary adjustment by the U.S. Treasury.
One word: bullshit!
If these guys are the "the best and the brightest" the company would be better off without them. They destroyed the company and the financial system! Why are they still working there, much less getting bonuses? Let them leave — I'm sure there are many more financial whizzes out there who would love to have a well-paying job.
And as for not being able to break the contract to pay the bonuses: let them sue! There isn't a jury in the world that would give them the money. Even if there were a jury that would give them the money, making them sue for it would drag it out, subject them to all the scorn the mass media can muster.
Martha Stewart went to jail for selling a few thousand dollars worth of stock on insider knowlege. And these idiots should get merit pay?!
What is is going to take to convince these modern-day robber barons that this is no longer business as usual? The idea that businesses can reap all the rewards but shift all consequences of their risks onto taxpayers is just plain wrong. And frankly, I no longer buy the "too big to fail" argument. How could it be worse?
Last updated on Jul 16, 2016