American International Group (NYSE: AIG) just can't get out of its own way. Seriously, if you want a blueprint of how not to spend "free" money from taxpayers, just read the media's coverage of the bank.
According to MarketWatch, the company is going to pay $450 million to employees of the unit that was basically responsible for the bank's collapse, you read that right.
It definitely seems that this decision is not resonating well across the nation's capital, as Larry Summers (economic advisor to the President) said that the payments are "outrageous." Democratic senator Barney Frank told Fox News that the government needs to look into whether or not these bonuses are "legally recoverable." Yet another Democrat, Elijah Cummings, wants AIG CEO Edward Liddy to resign.
These bonuses were promised to 400 employees of the unit before the federal bailout. The bonuses range from $1,000 to $6.5 million ... really. I know I sure would love a job where I can not do my job well and get a $6.5-million bonus, no matter what.
If my tax money is going to pay these bonuses, or any of the $1.2 billion in payments that AIG is scheduled to hand out -- I want to work for AIG. It would be easy, put me in a corner office (in the basement) with my red Swingline stapler and I won't bother anyone. I'll file papers, I'll type, I'll staple sets of paper together ... just make sure to give me that fat, legally bound $2 million (I'm not greedy) bonus, no matter how poorly I do.
And the government wonders why this bank bailout isn't popular? If news like this continues to come out, the AIG execs may find a group of taxpayers at their door with pitchforks and torches demanding their money back, who's with me?











Reader Comments (Page 1 of 1)
3-16-2009 @ 8:17AM
Don Oiler said...
The American Public can put pressure on companies who have been bailed out and continue this type of bonuses for non-performance. Do business with companies who are doing what is best for their company and the American Public. It is called a BOYCOTT. There are several banks in my area that have felt word of mouth of their banking practices have hurt them.
3-16-2009 @ 8:43AM
BHarrison said...
The only way to control this is to pass legislation putting any bank or corporation that receives ANY Federal "bailout" or TARP monies under strict regulations and control over how the moneyis utilized. The CEOs passing out these monies are the SAME CEOs whoorchestrated and prepetuated the frauds that undermined our national economy. Why haven't these CEOs been fired, indicted and prosecuted? Why haven't the ill gotten fains of these individuals been siezed and returned to the corporations?
3-16-2009 @ 8:48AM
BHarrison said...
Let us NOT forget that it was Congress who previously enabled and allowed the CEOs/corporations to orchestrate and to perpetuate the FRAUDS that undermined our natinal economy. And it was CONGRESS who passed out the "bailout"/ TARP monies without any restrictions.
Congress is the PRIMARY CULPRIT in all of these matters. The corporations could and can ONLY do what is allowed by Congress. Ergo, the special interests groups "pay off" Congress with massive "campaign contributions" and other "pay offs" . . . and then Congress allows and enables the special interests groups to do whatever they want to do.
CONGRESS IS THE PRIMARY CULPRIT IN ALL OF THIS ECONOMIC MESS.
3-16-2009 @ 9:19AM
gt313 said...
I might as well stop paying my taxes if this is what the gov allows with our money.When AIG received taxpayer money that voided any contract or bonus obligation with their executives.
3-16-2009 @ 9:46AM
JOHN CHABEK said...
what the hell is a bonus ?????? I thought you only got one if you did well, or the company you worked for had a stellar year where profits were up. Oh thats right we the tax payers gave them the money so they could get their bonuses. I have already sent my congressman a nasty e-mail, and am working on a letter as well. If we the people (tax payers ) dont make some noise and stir up some trouble, im going out to buy a pitchfork and get my torch ready. If you know anyone who works for this company start at their house. I got my eyes on the local AIG operation.
3-17-2009 @ 8:44AM
Richard Lesley Sr said...
With AIG winning a court ruling that the bonuses can't be blocked, setting up these contracts just before getting tax payer money, ( AIG pulled a fast one with their lawyers they already knew the government could do nothing because of contracts ) as a tax payer I say let AIG go under void all contracts and restructure. All they are doing is useing legal loop holes to fatten their pockets. NO MORE MONEY TO AIG!!!
3-16-2009 @ 11:02AM
delgriffith86 said...
I am an accountant & former employee of Price Waterhouse & Company & I cannot believe what we are now allowing to happen in our country - we may as well face the facts "our businesses & congress are run by a bunch of greedy, incompentent con men. Either change the management at AIG or let them go bankrupt - we simply cannot let them hold this country hostage to blackmail - "what an example for our hard working American Citizens"
3-16-2009 @ 11:15AM
Richard Lesley Sr said...
All AIG lawyers do is work with contract law somthing the GOVERNMENT don't practice. There are so many loop holes in corprate law it would make your head spin. Their board of directors and lawyers worked out these new contracts even months before they were up for renewal. If the government used it's resorces they could see they were scamed and that may be enough to block these bonuses. ( it is called knowing and willingly before funds were recived )
3-16-2009 @ 11:21AM
Missy said...
I manager my own banking, I have spent money unwisely, I have bought Food, Gas, Insurance, Medicine, Mortage, Electric bill, Phone Bill,and I really went overboard when I bought my dog some dog food (Shame on me) My Question is do I Qualify for 1 Million Dollar?
I will spend it more wisely, I will have big partys for my friends, rent a plane and go to Vagas. I will buy lots of clothes.
I am going to call AIG, tell them I am sorry for wasting my money for food ETC.
I am sure they will send me a Huge Check, anyone want to go to Vagas ?
3-16-2009 @ 11:20AM
Cindy said...
THERE IS SOMETHING TERRIBLY WRONG IN THE USA. WE HONOR *CONTRACTS* FOR BONUSES FOR LOUSY JOBS AND YET, TAKE AWAY MEDICAL INSURANCE FROM RETIREES THAT NEGOTIATED FOR THAT UNDER A CONTRACT IN PREVIOUS YEARS? I SAY, VOTE THE JUDGES OUT THAT ALLOW THIS TO TAKE PLACE, BOYCOTT ALL AIG COMPANIES AND THE BUSINESSES THEY DO BUSINESS WITH!
3-16-2009 @ 11:27AM
gt313 said...
Ours is a country of the people by the people and for the people should be amended to after big business gets theirs first
3-16-2009 @ 12:31PM
Aqualung said...
BUGGER OFF YOU BAILOUT BASTARDS
(Bugger Off, Irish Drinking Song)
WilliamBanzai7
HAPPY ST PATRICK'S DAY 2009
Sing along: http://www.youtube.com/watch?v=jbrzZWLu6Qw
Chorus:
So bugger off, you Wall Street bastards bugger off! (Fook Yu!)
Bugger off, you deadbeat bastards bugger off! (Fook Yu!)
Like a herd of bloody swine that refuse to leave the trough
You'll get no more this evening so you bailout bastards bugger off
AIG you've been a lovely bailout zombie, but oh the time does pass.
So don't you all be bettin' the Feds won't kick you in the ass.
You've been a splendid bailout basket case, but enough is enough.
We'd take it very kindly AIG if you'd all just bugger off!
Chorus
Here's to all the bankers and lawyers who've been servin securitized beers,
and puttin up their knoxious greed and their stupid drunken schemes.
So leave your money on their table when you go,
tomorrow you'll have a sorry head and nothin left to show
Chorus
Here's to all them bailout bag ladies who might be waitin with pans in their hands,
and thinkin one of them might make a charmin one night stand.
Please don't be offended girls this song is not for you.
Uncle Sam will be happy to oblige you to get this nasty job through.
Chorus
So Timmy G you've been promisin these bailout bag ladies a night of lovin bliss,
but truth be told your far to drunk on bailout swill to stand up straight and piss.
So give it up you lousy sod you'll not be gettin laid.
and the sooner that you're out the door the sooner Uncle Sam will get repaid.
Chorus
So bugger off, you Wall Street bastards bugger off! (Fook Yu!)
Bugger off, you deadbeat bastards bugger off! (Fook Yu!)
Like a herd of fooking swine that refuse to leave the trough
You'll get no more this evening so you bailout bastards bugger off
3-16-2009 @ 1:08PM
state fireman said...
These obligations were ones that the company could not legally rescind. Liddy even stated that he didn't like the arrangements and found "it distasteful and difficult to recommend to you that we must proceed with them."
The fireman have an agreement with the state too..and they Still make us take 10% cut (2 8hr furough days a month). so in these days of financial crisis..WE ALL need to bear down and take a cut, including this bozo's who are just educated enought to get us in trouble begin with.
Isn't AIG corp. holders of our political leaders pension fund??
3-16-2009 @ 8:36PM
KLW said...
I got tired of reading all this crap. The only way to stop this is to stop bailing out poor performing companies. What ever happened to the old say, "only the strong survive"? I guess if you have a sugar daddy in the Federal Government of the United States of America, you can continue to do business as usual, not perform, and still get paid for a lousy job. I wait for the day to interview one of these employees, but you have to fire them first BO ! Get some ball BO and replace them like Reagan did with PACT when the air traffic controllers thought they had the upper hand, somewhat a different situation, but same result could be had.