Sunday, March 15, 2009

AIG - 170Bn in Bail Outs 165M in Bonuses

Going to be very brief, just read this article and this one too, which points out the dollar amount of the bonuses. All I have to saw is wow, legal obligations? The company would be bankrupt and most of those people would be looking for jobs. This has no direct impact on me but there is something about the level of insanity expressed here that makes me quiver.

The company just posted 60 billion dollars in losses for one QUARTER and are surviving on tax payer cash but believe people are still entitled to bonuses? They want to keep the best and the brightest? The company is lucky to be in business, if/when it returns to profitability then quality of employees could be a major consideration but you've made your bed you must lay in it.


Web said...

It appears to be such a scandal, that the BBC has an article about it AIG to cut future bonus payments. What was the argument for not letting these guys go bankrupt again?

Majatt said...

Something about the entire global economy failing and life as we know it ceasing to exist.

Web said...

Did you see the article Obama: Block AIG bonuses. Any chance this is legit? Or maybe this is just rhetoric to make the public happy?

Majatt said...

The contractual bonuses will probably be paid, how much of th 165million that is I'm not sure.

This was the trade off made when they bailed them out rather than letting them go bankrupt. If they were bankrupt then all contractual bets were off so in a sense this is kinda what the taxpayers get.

The economy didn't crumble and AIG still has legal obligations. I find it somewhat amusing that the President can pardon a criminal on death row but can't cancel a few contracts.

Web said...

You should find this interesting. Liberals Voicing Anger, Outrage Over President's Handling of Bailouts.
Several prominent Democrats are pointing out that Obama aides were more than willing to press auto workers to renegotiate contracts as a condition of bailouts for car companies -- but are now citing the sanctity of contracts in AIG bonuses, saying they can't be canceled.