Sunday, March 15, 2009

AIG did WHAT?!

Whenever I can't sleep - which is often these days - I read. It's often cathartic and soothing (I mostly stick to the softer news stories). That is simply not the case today. Check this out:

Published: March 15, 2009, NYT

Lead paragraph:
The American International Group, which has received more than $170 billion in taxpayer bailout money from the Treasury and Federal Reserve, plans to pay about $165 million in bonuses by Sunday to executives in the same business unit that brought the company to the brink of collapse last year.
The bonuses will be paid to executives at A.I.G.’s financial products division, the unit that wrote trillions of dollars’ worth of credit-default swaps that protected investors from defaults on bonds backed in many cases by subprime mortgages.

The senior government official, who was not authorized to speak on the record, said the administration was outraged. “It is unacceptable for Wall Street firms receiving government assistance to hand out million-dollar bonuses, while hard-working Americans bear the burden of this economic crisis,” the official said.
So the article goes on to say, that, essentially, the Obama administration was pissed, Geithner was all, "You can't do that you arrogant SOBs!" and AIG responded, "Dude, we are going to do it because we're contractually obligated, and we want to keep and retain top talent and you can't stop us" (bullshit) and then millions of Americans were all, "Well, these 'top talent' folks were the ones who brought AIG to its knees and then got rewarded with a bailout to the tune of $170 BILLION and now you wankers are getting six-figure bonuses! AS IF!" Well, it goes something like that.

But in all seriousness, why aren't we taking to the streets and demanding reform? I'm as much to blame as the rest of us; here I am, sitting with my little computer comfortably in bed, and blogging about it. Some good that is doing. Maybe now I'll log onto Nationwide to look at my 401(k)...and weep. Seems to be the theme this morning.


  1. WOW !!! It seems that you are becoming politically aware of the insanity of the so-called Oboma rescue deals. Any astute manager would had placed pre-conditions in force before agreeing to any "rescue". You know where the ultimate responsibility belongs.....

  2. Hello FATHER. The administration is doing everything it can within legal parameters to stop the payment of these bonuses.

    I don't see any contractual obligations in those exec contracts can still be in place at this stage in the game...I'm dumbfounded. When a company goes belly up, aren't those null and void?

    The ultimate responsibility? Umm...AIG was receiving bailout $ prior to Obama. I think the execs at AIG are downright criminal.

    Obama hatin' is not allowed on my blog.

    Hope you enjoyed the muffins!

  3. Sorry- but the Oboma administration is only publically putting on a show of disgust for public feedback----The bonus package was in the recently signed Oboma's bill. He knew about this bonus situation and HE refused to take a stand;and now pleas ignorance. Basically, I believe that he takes his orders from Nancy P. DAD

  4. If anything, I think this may be a failure on Geithner's part. (And why are you blaming corporate excess / greed on the Obama administration, anyway?)

    I don't agree with your comment, above. And since we'll never see eye-to-eye politically, I'll leave it at that. Toodles!