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 email@example.com