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I am so glad to hear that the management of AIG feel honor-bound to reward their most incompetent employees with multi-million dollar bonuses. Who knew that AIG had such high ethical standards? But apparently, the attorney general of New York thinks the whole thing stinks. Roberty Scheer of Truthdig.com writes:

I’m not just referring to the swindlers in the Financial Products Subsidiary of AIG who devised and sold those insurance policies on derivatives that brought the world economy to its knees. They do seem deserving of a special place in hell, and presumably the same divine power that according to Scripture labeled usury a high moral crime and threw the money-changers out of the temple will consider that outcome.

However, the enablers are the AIG leaders who, as New York Attorney General Andrew Cuomo revealed Tuesday, signed those bonus contracts a year ago to reward the very people “principally responsible for the firm’s meltdown.” That’s a cool $44 million divided among the top 10 shysters, even though the depth of their chicanery was well known to top management.

As Cuomo noted in a letter to Rep. Barney Frank: “The contracts shockingly contain a provision that required most individuals’ bonuses to be 100% of their 2007 bonuses. Thus, in the spring of last year, AIG chose to lock in bonuses for 2008 at 2007 levels despite obvious signs that 2008 performance would be disastrous in comparison to the year before.”

The lame argument that those bonus-baby employees needed to be retained in order to sort out the mess they had created was also shot down by Cuomo, who revealed after his office’s initial investigation had pierced AIG’s veil of secrecy that “[e]leven of the individuals who received `retention’ bonuses of $1 million or more are no longer working at AIG, including one who received $4.6 million.”

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3 Comments

  1. All this should have come out when both Bush and Obama approved AIG bailout. I am appalled at the lack of due diligence. The blame lies at the top. Business’s can pay any damn bonus they want, but when they come to the public pigs trough that a differnt thing.

  2. Last I checked, this business is owned by the US government.

  3. Yes, therefore it is not a business it is a government agency.


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