American International Group Inc. will pay $450 million in bonuses to employees in its financial products unit. That division was at the heart of AIG's collapse last fall, which compelled the U.S. government to provide $173.3 billion in aid to keep it running. ------------------------------------------- So let me get this straight, instead of being fired, arrested, or hanged, or all three, they are being paid extra money. Sorry, there must be some great genius to all this that escapes me.
now we're told buy Geithner and those good people in the government that those contracts were air tight? I find this dubious, the government isn't looking hard enough. Idiots. Now more of our money is going for losers...no I take that back, they're not losers they gamed the system and have our money. Its we, who pay taxes who lost.
Reminds me of my kids...while we were providing the necessities of life (roof, food, clothing, education) they used "their" money on all the fun stuff. We finally ended it when they started buying cars nicer than ours! I love the way these AIG and other banks say "oh we didn't used the bail out money for this or that...as if there were separate pots of money. The bail out money used for survival of the bank and "their" money used for bonus, trips etc
Is this guy on drugs? Who would hire any of these clowns? Let them walk. "The large bulk of the payments at issue cover AIG Financial Products, the unit of the company that sold credit default swaps, the risky contracts that caused massive losses for the insurer." "We cannot attract and retain the best and brightest talent to lead and staff the AIG businesses, which are now being operated principally on behalf of the American taxpayers -- if employees believe their compensation is subject to continued and arbitrary adjustment by the U.S. Treasury," Liddy said.
The people who run AIG and the rest of the losing co's just like it should all be calling their mommy's this morning to inform them they have SHUT THEM DOWN! These people should all be fired and the co's should be shut down for good!
When are they planning on doing this? The ones they have and are being paid with taxpayer funds TOOK STUPID RISKS AND RAN THE BUSINESS INTO THE GROUND! THOSE are the "best and brightest" which need to be retained?
It's usually the case that when a business gets "wound-down" (or in this case, a section of a business) that you need to retain the guys who know what is going on there (or maybe those who know where all the skeletons are). The guys making the big bucks running the company have no idea of the details of the subdivision operation, so if the ones there walk, the bosses are left holding their dicks. It's like the big-shot who doesn't even know how to run the copy machine after his secretary walks out on him. They are blackmailed into paying at this point. Going forward, though, arguing for big bonuses to "retain the best and brightest" means you would be paying top dollar for "the best" to work under stupid CEO's/directors/managers - and stupid leaders forfeit their right to retain good people, so that makes no sense.
I have a hard time believing the government's excuse for allowing this to go forward (contracts). Why can't gov't say fine, you have contracts and you can honor them but not with taxpayers' money. Since money is fungible that would mean deferring the bonus payments until AIG paid the bailout money back and was profitable enough to pay the bonuses out of earnings. Another option would be a witch hunt to prosecute the scum and then invalidate the contracts due to fraud.
This is sick. Why in the world are we helping these companies that keep sending millions to people who do not know how to run a company? They cry yet get paid millions on the "average joes" taxes. Furthermore, I fear this is just the tip of the iceberg. Look what Enterprise rent-a-car did to get bailout funds: http://www.butasforme.com/2009/02/2...fake-evidence-when-lobbing-for-bailout-money/