Monday, March 16, 2009
Congress / Kotz / Politics / The Economy AIG: Where Failure is Worth a $450 Million Bonus
Posted by Pete Kotz on Mon, Mar 16, 2009 at 12:09 PM
In case you missed it, AIG, which has received $170 billion in welfare from the federal government to stave off collapse, is in the process of kicking $450 million in bonuses to its executives. Much of it's going to managers of the division that caused said collapse.
The company says it's contractually obligated to make the payments. And there's not much the feds can do. The Wall Street bailout bill last fall came with so few strings attached that it could be referred to as the Here, Have A Large Pile Of Our Money Act of 2008.
But the bigger question is, what kind of moron writes bonus deals that can even be attained when you cause the collapse of a giant multinational? That would be AIG Chairman Edward Liddy, who claims the rewards are needed to retain quality employees.
Comments (4)
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Pete, from one lifelong journalist to anohter, wouldn't you say that Nashville Scene is "too big to fail"?
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What is so utterly stupid about this, is that you complain about the individuals getting the bonuses, calling it rewarding failure, yet you most likely supported the bailout in general. Was that not a better example of rewarding failure?
I beg your pardon -- I think you'd be surprised at how few people in the media supported the bailout. Which took some guts considering that it was crammed down our throats. We work in a struggling industry, too, that's actually just as important as banking. We journalists didn't gamble with people's retirement. We didn't lie to people to get their money. And we haven't asked for a bailout. Instead, we're doing what millions of other unemployed people are doing: coping without a giant bailout. So,no, a lot of us "liberal media" didn't support the bailout.
"It's how it speaks to the breathtaking incompetence and inefficiency of Wall Street. "
-...and the Obama administration. His presidency is quickly turning into a complete joke. But he's going on a late night talk show this evening so maybe he's got it all figured out now?
