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Insurer AIG, whose business has been shored up by $170 billion in federal funds, says it is proceeding with $165 million in bonuses to, as the NY Times puts it, "executives in the same business unit that brought the company to the brink of collapse last year." Last week, Treasury Secretary Timothy Geithner told AIG it had to scale back its compensation, but, in a letter yesterday to Geithner, AIG CEO Edward Libby cited legal obligations saying its "hands are tied" and said the government's involvement would make it difficult for the company to retain its best employees. Um, wouldn't most people would understand not getting bonuses for crappy performance? Also, the Wall Street Journal says that bonuses total...$450 million. Naturally, this hits the sweet spot of the government (and public) railing against crazy bonuses—Rep. Barney Frank wants to find out if the bonuses are recoverable. Related: AIG reported a 4th quarter loss of $61 billion.
AIG Claims It Must Pay Out $165 Million in Bonuses
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I am a big fan of free energy sources and I think that magnet motors are acceptable future energy so
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nothing like starting sunday out in a blind impotent rage
This makes me so fucking angry I can't even describe it.
FFFFFFFFFFFFUUUUUUUUUUUUUUUUUUU-
Time to yank the bailout and tell AIG they can go ahead and keep their "best employees."
Best employees?!!? Do you know how many out-of-work people there are that are probably 100 times better than the clowns who screwed AIG???
This is sick. Why in the world are we helping these companies that keep sending millions to people who do not know how to run a company? They cry yet get paid millions on the "average joes" taxes. Furthermore, I fear this is just the tip of the iceberg. Look what Enterprise rent-a-car did to get bailout funds:
http://www.butasforme.com/2009/02/25/alert-enterprise-rent-a-car-may-have-fired-employees-as-fake-evidence-when-lobbing-for-bailout-money/
This is sick. Why in the world are we helping these companies that keep sending millions to people who do not know how to run a company? They cry yet get paid millions on the "average joes" taxes. Furthermore, I fear this is just the tip of the iceberg. Look what Enterprise rent-a-car did to get bailout funds:
http://www.butasforme.com/2009/02/25/alert-enterprise-rent-a-car-may-have-fired-employees-as-fake-evidence-when-lobbing-for-bailout-money/
"to retain its best employees." I can only imagine what their worse employees are like.
This is criminal. AIG should tank and let someone else do an equal or better job of screwing other people.
AIG paying out bonuses is a good thing. Instead of AIG holding onto the money, it will be distributed into the economy when the recipients start spending it. That's called an economic multiplier. That's what we want. Obama and Geithner should be cheering AIG on about giving out the bonuses.
or it will be used by the executives to invest in companies overseas. A funny story the other day was how JP morgan is moving nearly all its IT over to India...Jp got plenty of goverment aid...how does off shoring IT to India help US citizens? IT DOESNT. Fck globalization. fck trickle down economics.
Funny how the politicians getting the most upset about this are the same ones that gave this money away no strings attached in the first place. Who are really the stupid ones here?
I seem to recall Obama voted for the first TARP bill as senator but he will, of course, weasel out of any blame. Nevermind he has dwarfed the first bail-out with the money he's burned through in the last six weeks.
Instead of bailing out these companies, the government could have used that money to insure bank depositers through the FDIC then let the bank fails, tell these pampered executives to take a hike instead of subsidizing their lives of luxury.
Also, while you're at it at least try to muster a little anger at Nancy Pelosi for using the Air Force as her private airline for herself, friends and family. Last time I checked, the US Air Force was funded by the taxpayer dime too.
Happy ides, Ides.
Agreed. TARP is a massive boondoggle and I'm guessing pressure from foreign creditors was behind it more than anything else.
You could have actually had a cogent post if you didn't resort to a preprogrammed talking point at the end.
Nancy Pelosi uses military aircraft in accordance with the procedures set forth after 9/11 for the Speaker of the House, in coordination with the House Sergeant-at-Arms and the Department of Defense. Furthermore:
Is the media ever going to also put a spotlight on how ACORN and La Raza spend their "stimulus" windfall? I'm not holding my breath.
I would like to know who is in charge of our country? Not the people that's for sure. Why is everyone afraid of AIG?
I am looking for an angry torch mob to join. If anyone knows of one, please let me know. Thanks.
This is what happens when bills with more pages than the bible are hustled through congress in just a couple of days. Nobody knows what the hell is in them except the lobbyists who have been cobbling them together for years.
Imagine you start a college course on Tuesday, the professor gives you a thousand page textbook that you have to read, understand and be tested on on Friday. If you had any integrity, you'd say this is bullshit and walk out in protest.
we're 'still fucking peasents as far as I can see'
AIG is an insurance company, you would think they would know better with their investments.
it's greed on top of greed on top of greed.
thankfully Pb is still available but be forewarned, they going after that soon. only a matter of time now.
From what I've heard, the insurance division of A.I.G. is quite healthy and profitable. It's their investment banking division that traded all those credit default swaps, which is in jeopardy and, if I'm not mistaken, it is THESE people who survive on yearly bonuses! So why would a.) anyone evn want them around to begin with, and b.) reward them for screwing up the U.S. economy with a bonus payment? Killing them is far easier, more affordable, and better for the environment.
Lock these fuc*king jerks up in jail and kick them right in the balls. I sure hope some of these employees have a murder watch on them.
Want to talk about blind anger? Did you see the article in the NY Timea about the sunday champagne brunches? The last paragraph quotes a smug banker saying he made more than enough money already, and his bank just got an additional 10 billion!
They play while everyone else pays.