AIG SHOULD PAY $0 BONUS THIS YEAR

The NY Times published yesterday part of a letter sent by A.I.G’s CEO to the Treasury Secretary Timothy F. Geithner, defending $165 million in bonuses he wants to pay TODAY to executives in the same business unit that brought the company to the brink of collapse last year.

Just to make sure you all understand: The CEO of AIG wants to pay $165 million in bonuses to those who are responsible to the current financial catastrophe. These people made a fortune in the past 8 years from irresponsible underwriting and investing that was driven by short-term greed – and made a fortune. AIG wants to take your tax dollars and  further inflate their wallets.

Edward M. Liddy, the government-appointed chairman of A.I.G.,  wrote to Mr. Geithner that at least some bonuses were needed to keep the most skilled executives:

“We cannot attract and retain the best and the brightest talent to lead and staff the A.I.G. businesses — which are now being operated principally on behalf of American taxpayers — if employees believe their compensation is subject to continued and arbitrary adjustment by the U.S. Treasury

Mr. Libby is lying. This is the only option, as he is not stupid. He is  lying because he knows very well that there is no way that any of these executive will leave if they don’t get their bonus. The reason? Nobody else is hiring!!

Go ahead, test it – and see how long it takes for your redundant executives to find a new job that pays the same. Non of your competitors is hiring, non of the other financial institutions, so just stop the BS.

Mr. Libby is also promoting the continuation of the financial meltdown. These people have directly caused this situation – They should get a 50% pay cut to discipline them and show them that what they did was wrong.  Giving them bonuses is simple outrageous, as it promotes the same actions that caused this mess.

If you paid taxes in the last year you own roughly 80% of AIG. The person who runs AIG’s investment community division is Teri Watson. Since you are now part of this investment community you should email them and demand not to pay these bonuses – the email is teri.watson@aig.com



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7 responses to “AIG SHOULD PAY $0 BONUS THIS YEAR

  1. Yikes! No bonuses=No talent
    Our country shouldn’t pay these guys anything.
    Unless they work for free they’re overpaid.

    Real audacity in Liddy’s comments.
    Everyone knows better.
    Always trust your gut.
    Leave the “banker-speak” out of it.
    Liddy is completely crazy.
    You and I both know better.

    Anyway, I appreciate these articles.
    Recognizing the little guy’s pain is important!
    Everyone forgets we always lose on these deals.

    Don’t every forget this is America!
    Unless we have a King or Prince-
    Most of us shouldn’t get screwing like this.
    Be real Liddy- NO BONUSES!!!!

  2. I can’t believe these bonuses are getting paid out. Millions of households could benefit from a small payment of this money to help with bills or mortgage payments instead of giving it to the people who have contributed to this mess.

  3. The problem is in management general incentives system. Relation Owner-manages is working usually fine in calm times. In crisis, management in some point understands the days in company are coming to an end and starts to apply strategy “take as much as possible and run” and owners have no fast tools to stop them, because everything is legal…

  4. The bonus payout excesses at AIG are just the tip of the iceberg of what is happening with the other Wall Street bailouts including Bank of America. Working productive Americans are bailing out the same crooks that destroyed our economy along with 45% of the wealth in the world and now the American taxpayers and our children will be forced to live a far lower standard of living with reduced prosperity and opportunities due to this but only we pay the price.

    Washington has bailed out the banks, Wall Street & their Washington special interests and much of the cost is added to the national debt to by paid by this and future generations while real estate and investments continue to fall. Find out what a growing repudiate the debt movement could mean for treasuries, the dollar, gold and the stock market and how this is a better alternative than Washington’s plans to monetize the debt in future years and tax and destroy our remaining wealth by depreciating the dollar.

    The Campaign to Cancel the Washington National Debt By 12/21/2012 Constitutional Amendment is starting now in the U.S. See: http://www.facebook.com/group.php?gid=67594690498&ref=ts

  5. Invisible Hand

    Great – another Internet hero.
    unusual perspective? No!
    you’re just like all the bloggers.

    in so much as
    silly ignorant postulates to get the troops rallied

    give us all a break
    all this stuff shows up in google searches
    you’re wasting our time!

  6. topdownapproach

    Give me a break.
    Unless you want the world to end
    You need to pay these guys

    Do you really think they’ll work for free
    Or are you just pandering to the masses
    Everyone with common sense knows better.
    Silly articles like this are a waste of everyones time

    I get it.
    Tell them what they want to hear.

    Whatever.
    I think that you should pay them 100% bonus.
    That includes the normal 40% tax rate
    Higher taxes (90%) is unconsitutional

    Barack is a bad man, seriously.
    Otherwise he should follow the laws of the US.
    You and me both will be better off.
    Seriously!

  7. Heywood Jahbloemi

    Goodness
    Unlikely, but true
    You probably got it right.

    I hate to admit it.
    So I won’t.

    Simply too painful
    Out of the question

    Good readers understand
    And don’t complain.
    Yahoo!!!!
    !

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