Bonuses For Failing?
So even though we have given AIG $165 billion of our own money, they can still make massive payouts in the form of bonuses: American International Group is giving its executives tens of millions of dollars in new bonuses even though it received a taxpayer bailout of more than $170 billion dollars. AIG is paying […]
So even though we have given AIG $165 billion of our own money, they can still make massive payouts in the form of bonuses:
American International Group is giving its executives tens of millions of dollars in new bonuses even though it received a taxpayer bailout of more than $170 billion dollars.
AIG is paying out the executive bonuses to meet a Sunday deadline, but the troubled insurance giant has agreed to administration requests to restrain future payments.
But here is the real kicker:
Geithner termed the current bonus structure unacceptable in view of the billions of dollars of taxpayer support the company is receiving, this official said.
In a letter to Geithner dated Saturday, Liddy informed Treasury that outside lawyers had informed the company that AIG had contractual obligations to make the bonus payments and could face lawsuits if it did not do so.
So they have “contractual agreements” to pay out these bonuses, so they go ahead? Think of the people out there who are losing pensions because of the economy. Oh but it’s fine to screw over those middle class people, we only need to worry about saving the rich.
It’s time for the Obama administration to tell the people what is going on and why they are wasting tax payers money to simply pay out these bonuses. Perhaps its time to tell AIG we are pulling back the money and they need to go into bankruptcy in order to straighten out these “contracts”.
Think about it. If you get in way over your head credit wise, which is a contractual agreement, the government doesn’t come in a bail you out. Instead you need to go to court and file bankruptcy in order to get your finances straightened out. Why aren’t these big companies that are getting bailed out forced to follow suit?
And Geithner is just going on the word of AIG’s attorneys and CEO? Maybe we should hold any money going to AIG pending our lawyers, the Justice Department, reviewing these contracts.
I’ve been giving the administration a lot of room since taking over, but this is getting ridiculous. It’s time for actual accountability to the real investors of companies like AIG – the taxpayers.
With this kind of keystone cops style behavior taking place in our financial institutions, is it any wonder that China is worried about our financial state?