Don’t Get Angry at AIG
I’m angry, like everyone else, that taxpayer money went to pay for big bonuses for AIG employees. I think most people, however, are angry at the wrong people.
AIG, as much as they have screwed up, claims that all the bonuses that were given out were contractual. If that’s the case, than how could AIG NOT pay these bonuses? Did the government say they have to cut salaries? Did the government tell AIG that in exchange for bailout money they would need to renegotiate all their employee contracts? No. Why is everyone getting angry at AIG?
The real problem here is the bailout. Don’t get me wrong. I think a bailout is necessary. But we’re giving money out to financial institutions that only care about their survival. They don’t care about the American taxpayer. They shouldn’t care. We work in a free-market economy. It’s a fight-for-survival world and that’s what they’re doing. I’m angry at our government for not thinking about this sooner. I’m angry at our ridiculous accounting system that allows contractual bonuses to go through in this situation (if your company nearly sank the economy, I don’t care what performance goals you’ve met, there shouldn’t be any bonuses). And frankly, I’m angry at the misguided people out there who think that AIG is the only entity to blame here.
Who are you angry at?
we don’t know if the contract is valid.
we if the contract was unconscionable when entered into.
we don’t know if the bonuses are considered excessive compensation.
@Anonymous
Your right about the fact that we need more information but what constitutes an unconscionable contract? What is considered excessive compensation? The answers will be very subjective.
I am angry that even thought a special “clause” was entered into the bailout by congress (ie: Chris Dodd) that allowed these bonuses, we have congress ripping the CEO of AIG a new one about something they approved.
@Cough
What was the special clause?
http://www.cnn.com/2009/POLITICS/03/18/aig.bonuses.congress/index.html