BS Rationale
The rationale for paying the bonuses is that these are contracts and they might get sued. Futher AIG:
In a letter to Geithner yesterday, Liddy agreed to restructure some of the payments. But Liddy said he had “grave concerns” about the impact on the firm’s ability to retain talented staff “if employees believe that their compensation is subject to continued and arbitrary adjustment by the U.S. Treasury.”
"I do not like these arrangements and find it distasteful and difficult to recommend to you that we must proceed with them," Liddy wrote.
Wow just like everyone else that works at a company. Like when a company no longer contributes to 401(k) or suspends raises or increases health care premiums. In other words, the employees at AIG are going to treated just like most other employees who work for a living.
AIG officials say that some of the upcoming bonuses are relatively modest once they are divided among employees. About 4,700 people in the company’s global insurance units are receiving $600 million in retention pay. In addition, about $121 million in corporate bonuses will go to more than 6,400 people, for an average payout of about $19,000, according to AIG.
Modest by what standard. $19,000 is a great deal of money to say the millions of people who don’t have a job or make minimum wage.
The majority of the money is going to the people in the financial products division. You know the guys who came up with financial derivative that caused this crisis in the first place.
It seems not a great deal can be done since the bonuses have already been given out. However, New York Attorney General Andrew Cumo is trying to take action. He's demanding:
-- A list of each bonus recipient's job and performance in the job.
-- A list of those who negotiated the bonuses.
-- An immediate status report on whether the bonuses have been paid.
I'd go a step further. Since the American taxpayer is now the owner of AIG, the name of each person who received a bonus should be made public.
One further sign of AIG's arrogance is there complete inability to see how people would react to bonuses being given out. Do you think there's going to be any support for helping AIG when it comes cup in hand the next time it asks the government for money?
Maybe it's time to let AIG fail.
1 comment:
I believe the bonus payout excesses at AIG are just the tip of the iceberg of what is happening with the other Wall Street bailouts including Bank of America. Working productive Americans are bailing out the same crooks that destroyed our economy along with 45% of the wealth in the world. Now the American taxpayers and our posterity will be forced to live a far lower standard of living with reduced prosperity and opportunities due to the accumulated national debt to fund the bailouts and once again we will pay the price.
Washington has bailed out the banks, Wall Street & their Washington special interests and much of the cost is added to the national debt to by paid by this and future generations while real estate and investments continue to fall. I believe Washington plans to monetize the debt in future years while they tax and destroy our remaining wealth by depreciating the dollar.
To stop this wealth attack, the Campaign to Cancel the Washington National Debt By 12/21/2012 Constitutional Amendment is beginning now in the U.S. See: http://www.facebook.com/group.php?gid=67594690498&ref=ts
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