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AIG: Bonuses, Come Get Your Bonuses
The Washington Post is reporting; AIG Paying Millions in Bonuses
Despite Receiving Federal Bailout:
The White House is not pleased:
But of course AIG has an excuse for everything (emphasis mine):
There is is a common clause in contracts, "Force Majeure," which essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, or the collapse of the World economy.
I say, give 'em all a buck. Pat them on the head. Tell them to sue. That's what's happened to their customers. And, we've had it up to here...
Despite receiving $170 billion in federal aid and recording a staggering loss for the last quarter, insurance giant American International Group is doling out tens of million of dollars in bonuses this week to senior employees.
The White House is not pleased:
While AIG agreed to pay the bonuses months before the government's rescue of the company began, the matter still is a source of anger for government officials. In a phone call on Wednesday, Treasury Secretary Timothy F. Geithner told AIG Chairman and chief executive Edward M. Liddy that the payments were unacceptable and needed to be renegotiated, according to an administration source.
But of course AIG has an excuse for everything (emphasis mine):
The company has since agreed to change the terms of some of these payments. But in a letter to Geithner, Liddy wrote that the bonuses could not be canceled altogether because the firm would risk a lawsuit for breaching employment contracts. Liddy also expressed concerns about whether changing the bonuses would lead to an exodus of talented employees who are needed to turn the company around.
There is is a common clause in contracts, "Force Majeure," which essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, or the collapse of the World economy.
I say, give 'em all a buck. Pat them on the head. Tell them to sue. That's what's happened to their customers. And, we've had it up to here...
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You know, I am reminded of the words of Lenin around 1916:
THIS STUFF IS STARTING TO PISS ME OFF!!!
Basically they are saying:
If you do not permit me to distribute tens of millions of dollars to my family and friends and supporters, I might get sued.
What is the difference between this activity and the activities of Madoff who said:
Just let me distribute this last 70 million to my wife and you can have the rest.
I am speechless.
March 14, 2009 8:52 PM | Reply | Permalink
And Santilli is saying what? Where is his populist rant? Thank you posting this even though it makes too angry. I'll not sleep and I have to work tomorrow am.
March 14, 2009 9:27 PM | Reply | Permalink
Is this coming from the $$$ that the Obama administration doled out to AIG?
March 14, 2009 9:53 PM | Reply | Permalink
They will claim not.
This is an outrage to the taxpayer! And I predict a tsunami of complaint.
March 15, 2009 6:06 AM | Reply | Permalink
But does anyone really know? Can someone give a resource with the facts as to this?
March 15, 2009 1:16 PM | Reply | Permalink
Money is fungible. Thus if I've got money in a bank, can they say my money is not used for bank salaries? No way to tell!
March 15, 2009 1:26 PM | Reply | Permalink
This is blood on Obama's hands
March 14, 2009 10:47 PM | Reply | Permalink
Geithner is a woosey, he has wimpoid tissue where he should have spine.
A lawsuit! How about telling the assholes at AIG that you are going to ask for a DOJ investigation of executives at AIG for fraud and abuse and treason for wrecking the financial system?
We're talking about seizing their bank accounts, their homes (all of them), auctioning off their personal possessions (including emptying those walk-in closets) and recouping the $240 billion ASAP.
They should have let AIG go under.
March 15, 2009 12:56 AM | Reply | Permalink
This is a rock and a hard place situation. Sure, I'd love to see AIG go under but we have to remember who and what they insured. It could create a disaster. Then again, who knows? It's also possible that bailing them out won't prevent the sky from falling anyhow.
But as far as the top brass who took the bonuses goes, my guess is that they could care less about AIG or anything other than getting their last big draws. If they'd been on the Titanic, they would've been in the galley sutffing silverware in their pockets as it went down.
March 15, 2009 11:07 AM | Reply | Permalink
This IS on Obama and Geithner.
If AIG would have been allowed to go bankrupt, there would not have been bonuses.
The taxpayers are being played. All the bull about how regrettable it is as they dole out 165 million.
And no transparency. Where's the list of executives and the amount they are getting?
How about we the taxpayers sueing the executives for their bonuses? These guys are the ones that ran the company into the dirt.
March 15, 2009 6:55 AM | Reply | Permalink
Pigs. If Obama doesn't have the political will to do more than have Geithner whine like a bitch, he's part of the problem.
March 15, 2009 10:46 AM | Reply | Permalink
I don't see why the threat of a lawsuit phased anybody. These guys need to be pressured to give up their damn bonuses, at least most of the money.
If they won't give up any, they can sue. And get what if they win? Their bonuses. Why would anyone give them their bonuses under threat of a lawsuit that might result in their getting the bonuses? The government has armies of lawyers who can sue them back, for bad performance, fraud, whatever. Oh, then these high fliers would quit? Fuck them. Skads of people are laid off on Wall Street and would love to have these jobs.
This has been mishandled.
March 15, 2009 12:10 PM | Reply | Permalink
Let them come out in public and plead their case. We can bring tomatoes.
March 15, 2009 1:14 PM | Reply | Permalink
That's the best idea yet.
March 15, 2009 1:50 PM | Reply | Permalink
You should ask, "What would the bonuses have been otherwise?"
Case 1 - Catastrophic failure... Zero bonus, many fired
Case 2 - No pressure on AIG re bonuses... Probably higher.
What pressure was applied and were bonuses "reduced"?
March 15, 2009 1:56 PM | Reply | Permalink
1. Insurance companies get sued all the time. They are so good at delaying tactics that anybody who thought they were entitled to a bonus would be long dead before a cent was ever paid out.
2. The force majeure argument is excellent. I wish I'd thought of it.
3. Retain which excellent employees? Where would they go? How good were they given that they got AIG into the mess to begin with.
4. Corporate Welfare gone amok.
March 15, 2009 3:25 PM | Reply | Permalink
Can somebody please post some links to protest groups? I'd like to go scream and yell in public about this at least once a week...
Here's one:
http://www.bailoutpeople.org/april3-4.shtml
Assemble at 1 pm Friday, April 3
at the Intersection of Wall & Broad Streets
(The Stock Exchange)
March 15, 2009 4:14 PM | Reply | Permalink