Thread: Where is my Bonus?

'Outrage' at AIG bonus payments

AIG insures financial institutions around the world

The Obama administration and US senators have reacted angrily to the bonus payouts to executives announced on Sunday by US insurance giant AIG.


See--> http://news.bbc.co.uk/1/hi/business/7945774.stm

AIG bonus payouts about $165,000,000.00

Me TOOOOOOO!!! The recession is KILLIN' ME!smoking_baby.gif

Former AIG exec at center of economic crisis Story Highlights

Joseph Cassano was once head of AIG's financial products unit. He left the company last March. Cassano was at "epicenter of the earthquake" that threatened U.S. economy. Cassano and superiors were either blind to risk or refused to acknowledge it

By Campbell Brown -- CNN -- See ---> http://www.cnn.com/2009/POLITICS/03/...rss_topstories

CNN's Campbell Brown says Joseph Cassano, formerly of AIG, is at the center of what ails the American economy. All this week, as part of CNN's focus on the Road to Rescue, we're going to name names. We are going to introduce you this week to five new inductees into our Rogues Gallery. And given today's news, our obvious first choice is the man many say played a big role in AIG to its knees: Joseph Cassano. He was once head of AIG's financial products unit. He left the company last March.

Originally Posted by Spaf

The Obama administration and US senators have reacted angrily to the bonus payouts to executives announced on Sunday by US insurance giant AIG.

Same comment. Different thread.

If this is such a big deal to the administration and Congress, then why didn't they make it part of the agreement of accepting funds? The can complain and gripe all they want after the fact. They really don't have a valid complaint and should have done better due diligence if paying compensation was within the scope of how to apply those monies.

(I'm not for most of this bailout. But I do recognize that a deal is a deal is a deal and should be honored as such.)

Let me see if I got this right-

Many of those receiving bonuses are employees of the division that sold the derivatives (credit default swaps) that blew up in their faces.

there are about 400 of them, getting bonuses of about a half-million dollars, for "retention" of their "expertise.".

Now, since we own 80% of AIG, wouldn't you think that they would either fire the guys who blew it, (thereby negating the need for the "expertise".) or...

Would you think that since we're now 80% owners, that we would spin off that branch of AIG, and then declare it bankrupt, Chapter 11, so that the contracts can be voided out?

Our autoworkers were forced to renegotiate their contracts, take concessions, etc. They were forced to give wage and benefit concessions. Big concessions.

What makes AIG's bigwigs different?

Originally Posted by ChemEng

Same comment. Different thread.

If this is such a big deal to the administration and Congress, then why didn't they make it part of the agreement of accepting funds? The can complain and gripe all they want after the fact. They really don't have a valid complaint and should have done better due diligence if paying compensation was within the scope of how to apply those monies.

(I'm not for most of this bailout. But I do recognize that a deal is a deal is a deal and should be honored as such.)

Originally Posted by Bullishreturn

Let me see if I got this right-

Many of those receiving bonuses are employees of the division that sold the derivatives (credit default swaps) that blew up in their faces.

there are about 400 of them, getting bonuses of about a half-million dollars, for "retention" of their "expertise.".

Now, since we own 80% of AIG, wouldn't you think that they would either fire the guys who blew it, (thereby negating the need for the "expertise".) or...

Would you think that since we're now 80% owners, that we would spin off that branch of AIG, and then declare it bankrupt, Chapter 11, so that the contracts can be voided out?

Our autoworkers were forced to renegotiate their contracts, take concessions, etc. They were forced to give wage and benefit concessions. Big concessions.

What makes AIG's bigwigs different?

What exactly did these "executives" do to deserve bonuses? Did they do something exceptional that caused their employer's business to prosper? Apparently not, since AIG had to beg for a bail out backed by our tax dollars to avoid bankruptcy. What kind of contract with these "excellent" executives would be "binding" after that company filed bankruptcy? If AIG's reason for paying these ridiculous bonuses is to "retain" these people due to their "value" to the company, I believe it's a cover-up. The bonuses are hush money that AIG is using to keep these scumbags from talking after they go to work somewhere else. Apparently, the Attorney General of New York is thinking the same thing.

This link is the Attorney General's letter to AIG's CEO, Liddy.
http://i.cdn.turner.com/cnn/2009/ima...er.3.16.09.pdf

AIG letter from Cuomo.jpg

I think with all my hard work i'll put in for a 4.7 million dollar bonus this quarter.

Originally Posted by budnipper1

What exactly did these "executives" do to deserve bonuses?

My point is simply that there wasn't language in the bailout obligations that make this question relevant. If Congress or the president wanted for this to be part of the discussion, then the time to implement it was before giving the money over and not after. This should be pie in the face of our representatives and not AIG.

Originally Posted by ChemEng

My point is simply that there wasn't language in the bailout obligations that make this question relevant. If Congress or the president wanted for this to be part of the discussion, then the time to implement it was before giving the money over and not after. This should be pie in the face of our representatives and not AIG.

I see what your saying Chem but if you release a person from prison and don't tell him to behave himself and fallow the laws of the land. Is it the prisons fault if the person committed another crime? It may not have been specified before the money was given to them but there come a point of personal responsibility. They recieved help in the form of money, now they need to wisely use this help to fix their company.

What what? sorry, i just wanted to post somewhere

Critics blast AIG as flap escalates over bonuses

WASHINGTON — President Obama latched on to the latest round of populist anger over corporate greed Monday, ordering his Treasury secretary to "pursue every legal avenue" to stop insurance giant AIG from giving $165 million in bonuses to some of the executives who drove the company into financial ruin before it was rescued by a government bailout.

See --> http://www.usatoday.com/money/indust...g_N.htm?csp=34