OMG, the AIG bonuses are to the Derivatives shop that tanked the company?

[dkf]

I didn't think I could be more shocked at the sheer chutzpah of these characters, but they have outdone themselves again.

http://www.talkingpointsmemo.com/archives/2009/03/ive_written_been_highly_critical.php

AIG, Begone!

I've written been highly critical of the government bailout of AIG. But the new spectacle of the company paying $100 million in bonuses to executives, even over Secretary Geithner's objections is an example of what's wrong with it.

First, lest there be any confusion, we're not talking about bonuses for executives at the conventional insurance providing divisions of AIG. We're talking about $100 million in bonuses for executives at the company's Financial Products division, the shop in London that wrote almost half a trillion dollars of credit default swaps, mainly on crappy mortgage securities -- the ones that caused the company's death spiral and put taxpayers on the line for what will likely eventually be a quarter trillion dollar price tag.

[Demeter]

1. They Did More Than That

They literally brought down the world economy. The star on the Christmas tree.

[dkf]

2. Just when I thought I couldn't possibly be more upset than I am...

I laugh when I think of the outrage at the Wells Fargo "junket". That was piddling compared to what is happening at AIG.

This is theft of the people's money and simply cannot stand.

[Junkdrawer]

3. Hush Money

They know who the counter parties are and how much of the AIG extortion is going into the pockets of hedge funds (the wealthiest of the wealthy) and how much is going to prop up banks.

[dkf]

4. Kashkari needs to get the boot ASAP.

Geithner too if he can't figure out how to reverse this crap.

Where is Cuomo? Can he do something? He sure seems to be giving Merrill Lynch grief.

[Junkdrawer]

6. Cash 'n Carry?

What a great and appropriate name.

If someone wrote this as a script, it would be rejected as too over-the-top.

[dkf]

8. HA! We should have known better huh?

Now that is one Indian name that someone might want to disavow.

[exboyfil]

5. $450 million to the folks who killed the company

cost taxpayers at least $170B (probably much higher).

“AIG plans bonuses to financial-products employees
Payments go to staff at unit that sent insurer to brink of collapse: Journal
By MarketWatch
Last update: 4:08 a.m. EDT March 15, 2009Comments: 135TEL AVIV (MarketWatch) — American International Group is set to pay $450 million of bonuses to employees of the unit that was largely responsible for the New York insurer’s collapse last fall, The Wall Street Journal reported.”

[dkf]

7. $450 million?

I read it was $100-$150 million. It just gets WORSE.

[exboyfil]

10. The $150M probably makes some sort of crazy sense

because it went to the good portions of the business (insurance etc). This assumes the bonus will serve to retain these productive individuals, and they will continue to generate profits that can be used to pay us, the taxpayers, back (or alternatively to keep the businesses strong enough to sell so that we can also recoup the taxpayers money).

The $450 M is going to the folks who killed the company (and wounded the tax payer). You know the high rollers in London who set up shop over there so they could roll the dice, and THE SEC LET THEM DO IT.

I frankly would prefer to pay lawyers in court than to give those jackels a dime. It is pretty bad when I prefer to see the money go to lawyers. Not only that I think they should aggressively pursue all compensation already received under breach of fiduciary duty (and probably fraud).

[Sal Minella]

9. AIG lost $61 billion in their last quarter 08, according to NPR this morning.

AIG spokesman said the bonuses are necessary to keep from "losing top talent."

I'm not an economist at all, but it looks to me like their top talent should be hanged instead of bonused.....?

[Fla Dem]

12. If that's their talent, they have more problem than they know. Where would this "talent" go?

would would hire these f*&kers? Hush money, pure and simple.

[HughBeaumont]

11. Seriously, why are people not INVADING their offices and demanding this not happen?

Why do we continually let these assholes get away with this shit?