AIG Bonus "scandal"

**danzig** · March 17, 2009, 03:26 PM

This story interest me alot, not necessarily because of the bonuses but because of the reaction and what appears to be the general incompetence of our government that is now tripping over themselves to divert blame. Why didnt at some point when our goverment was tossing baskets of money at AIG didnt someone actually look at their obligations the company had. The bonus this dates back to 2007 but yet no one in goverment saw/realized this that AIG was basically bound to pay the bonuses? So why exactly is this AIG's fault and not goverment for actually taking the time to see what/who they were giving our money to?

Now of course the "villians" in all this are AIG and the guys who received the bonuses, not the idiotic politicians. We are talking about a grand total of around 125-150 million while the goverment has given AIG in excess ove 100 billion. Yes bonuses being paid out given the bailout is stupid but a) we are talking peanuts and b) they were legally obligated to pay the money out. Only our goverment in throwing away 1+ trillion dollars in past month could find the time to turn 150million into the "villians" in all this. Its like all the complaining about private planes during hearings last month, yes it shouldnt be done but is the economy *really* in the tank because of THAT? Of course while congress was complaining of that Pelosi and Reid were using the airforce as their own private airline.

Now our idiotic senator from NY is talking about passing a special law to tax the bonuses at 100%. Great! Retroactive laws now!

**Kiljan Arslan** · March 17, 2009, 03:36 PM

take away the bailout and shoot the ceos.

**~~The Devil's Sergeant~~** · March 17, 2009, 03:36 PM

There is already a thread on this and I agree with you. AIG was rescued with tax dollars so it could meet its contractual obligations. One of those obligations is paying its employees their compensation. What did everyone expect? That everyone work for "ata boys" and pats on the back.

Here is a wet dream of mine that I recently had a mastabatory experience to. It goes like this.

China is lending the USA untold billions, right? In much the same way the USA government owns AIG, China owns the US federal goverment through the leverage it has in holding all that debt.

THe US government is forcing bailed out companies to accept all kinds of restrictions on exec pay and perks. I would love to see China tell the US government that its execs (President, Congressmen et al) should have their pay capped and Air Froce One has to be parked until China is satisfied that the US government is returned to frm financial footing as Chinese leadership defines it. Only commercial coach class from now on.

**Martin N** · March 17, 2009, 04:46 PM

Weve been through this is the other thread, contractual obligations do not cover bonuses, its not mentioned on the contract that you have too receive bonuses, they just are for the sake of it, they didnt stop the bankrupcy, they prolonged it by outstretching there hand for taxpayers money, Therefore they dont deserve an extra cent, then in return literally shoved it back in our faces by paying huge sums of money, which are supposed to ensure our citizens pensions and the like, in bonuses, which arent deserved, nor needed, to the ceos and directors who deserve more than bonuses let me tell you, a good hanging is what they deserve.

**~~The Devil's Sergeant~~** · March 17, 2009, 04:58 PM

Originally Posted by Martin N

Weve been through this is the other thread, contractual obligations do not cover bonuses, its not mentioned on the contract that you have too receive bonuses, they just are for the sake of it

That's just flat out wrong. You should be ashamed of yourself for writing something you know is not true. These bonuses are part of employees contracts for meeting whatever criteria it was was.

, they didnt stop the bankrupcy,

The government stopped AIG from going bankrupt, which is what would have let AIG get out of these contracts.

they prolonged it by outstretching there hand for taxpayers money, Therefore they dont deserve an extra cent, then in return literally shoved it back in our faces by paying huge sums of money, which are supposed to ensure our citizens pensions and the like, in bonuses, which arent deserved, nor needed, to the ceos and directors who deserve more than bonuses let me tell you, a good hanging is what they deserve.

Drivel, absolute drivel, though you are laying out perfectly why government run enterprises perform so poorly. Government enterprises have to answer and pander to the dumbmasses who whine and complain, act on emotion and not reason, and offer ignorant "expert advice."

**Viking Prince** · March 17, 2009, 05:08 PM

The real villians are government bureaucrats and politicians that do not understand the basis for business which is contracts and the rule of law. If they had let AIG fail, the bonuses would have not been issued and the contracts simply ripped to shreads. By bailing out the company and avoiding bankruptcy, this is a result of that foolish error. The bonuses would not have likely be negotiable to even accept the bailout. Only bankruptcy and any clause within the contracts would have done so. This whole mess is just another ploy by the left to put a cap on all employee compensation and compensation for risk taking in general. You would think the good senator from NY would understand the value of Wall Street and contracts better than his speeches imply.