Jeff Smith 2:30 p.m., June 26
- Community Blog
More on AIG. This is a portion of the text of the Washington Post story:
"Ever since it was bailed out by the government last fall, AIG has been defending itself against accusations that it was richly compensating people who caused one of the biggest financial crises in American history.
The Obama administration, since taking over the AIG rescue effort, has imposed stricter compensation rules, banning “golden parachute” payments for executives leaving firms and barring executive compensation above $500,000, except in the form of stock that cannot be cashed in until the government's loans are paid back.
The government could not revoke bonuses promised before the government's rescue efforts began, officials said.
Sen. Christopher Dodd, D-Conn., a leading critic of excessive executive compensation, backed a measure earlier this year to curb the practices, but it included an exception for bonuses agreed to before Feb. 11, 2009.
The Associated Press contributed to this report.
If AIG had not received the government (by the taxpayers) money, would it still be 'legally obligated' to pay these bonuses? If the definition of the best & brightest is the persons who got into this HUGE mess, then why keep them?
Someone should do a poll asking Americans if they got their bonus.
"The government cannot revoke bonuses promised..." That is a bunch of hogwash. But for the money from 'you and me', there would not be an issue of payment because there would not be any money.
This song and dance routine is grating on the nerves of every single person affected by the current financial mess.
Message to President Obama and ALL the advisors: STOP AIG. Their arrogance in this mess has been unbelievable.
Some comments from locals:
"I think AIG and Wall St. are more like the teen-ager who killed him parents and then asked for leniency because he was an orpan! Good call Sandy!"
"I could not agree more. AIG execs declaring bonuses for themselves would be like a drunk bus driver asking for a raise after crashing the bus. And since AIG is now essentially taxpayer-owned, it would be like that same bus driver asking his crash survivors to pay for that raise. Yeah, sure Ralph, here’s a million bucks…keep up the good work."
At this point, we need to swap out “the best and brightest” for some reasonably bright folks possessed with the will and the integrity to hold private enterprise ultimately accountable for the public good.
You can read the full AIG story at: