The Real Harm Caused By the AIG Bonuses

Government intervention

When Feds stepped in and saved AIG from BK, all bonuses should have been taken off the table; mgnt could have made their case at that point to reward with retention bonuses those who were vital to the profit side of the company.

And not reward those who were in the money losing side. Ridiculous.

Now the door is open to having Congress regulate pay and bonuses.

Shamwow! of NV @ Mar 20, 2009 14:03:02 PM

foul ups

I went to college but fouled up while there instead of making the grades and have spent my post-college days living paycheck to paycheck despite working my tail off. Got it all wrong...should have worked my tail off in college and fouled up in my job so I could reap huge bonuses on top of an insane salary at the expense of people like me.

Gene of PA @ Mar 19, 2009 18:03:53 PM

AIG

I can't understand the use of the two words ,Bonus and Contract. They don't belong together, a bonus contract is a guarnteed bonus regardless of the condition of the company.The unwritten "Bonus Contract" i had when I was working said , if the company is successful we give you a percentage bonus,of the success.

Harry Hankins, Springfield< MO

Harry Hankins of MO @ Mar 18, 2009 20:49:27 PM

bailouts

WHY IS "EVERYONE UPSET," THIS IS WHAT WE "ALL" VOTED FOR IN 1996, WHAT DID YOU THINK WOULD HAPPEN?????????

THE RICH GET RICHER, THE MIDDLE CLASS, BECOMES THE POOR-CLASS, AND THE POOR, JUST SAY POOR!

WE ALL SAW THIS COMING AND DID NOTHING, WHY COMPLAIN???

Willie of NV @ Mar 18, 2009 19:16:08 PM

Renegotie

Why couldn't these contracts be renegotiated as a condition of the bailout? Detriot had to, with all the union workers having to take paycuts, and retirees taking pension and medcare cuts, and their pension plan being transferred to a much less secure holder. Oh, yeah. Those were blue collar workers, not Wall Street sharks. Nevermind.

Jean of AL @ Mar 18, 2009 18:15:01 PM

Ann M. of IL. GIVE ME A BREAK!

The DIMocrasts are just as responsible for this mess as the GOP!!! Clinton's "housing acts" led to some of these "securities". Granted, Bush didn't do anything to reverse them lest he be branded as a "racist" by placing verifications and qualifications in place for obtaining mortgages. Even the DIMocrats on "the hill" that had oversight slapped the hands of people who were "blowing the whistle" on these financial practices.

We should have voted ALL of the idiots out of DC and started over in 2009, but to blame it on the Bush Administration is just plain stupidity! There is plenty of blame to coat DC with ashes like the hills of the other Washington after Mt. St. Helens!!!

Mike R. of TX @ Mar 18, 2009 15:19:48 PM

WHO IS WATCHING THE STORE?

IT'S THE GOVERNMENT, STUPID. AND IT WILL CONINUE TO DO THIS TO US AS LONG AS THEY ARE IN POWER.

IF YOU EVER WORKED FOR A GOVERNMENT AGENCY, THEN YOU KNOW THAT TOO MANY EMPLOYES ARE THERE JUST TO COLLECT A PAYCHECK.

IT ISN'T ANY DIFFERENT IN WASHINGTON. THEY DON'T CARE ABOUT THEIR OATH, THEY ARE ONLY INTERESTED IN RE-ELECTION.IT SEEMS THAT THEY DON'T EVEN KNOW HOW TO READ. YOU CAN BLAME THE REPUBLICANS OR THE DEMOCRATS. POLITICIANS ARE JUST MORE ARROGANT, THATS ALL.

I PREDICT THAT THIS WILL DESTROY THE DEMOCRAT PARTY. HOWEVER,THAT WON'T SOLVE ANYTHING BECAUSE THE REPUBLICANS ARE JUST THE OTHER SIDE OF THE SAME COIN.

FRANK LITTLE of CA @ Mar 18, 2009 15:14:01 PM

well, it's complicated

One thing - if Barney (an appropriate moniker if there ever was one; apologies to Don Knotts) Frank wasn't inverse bailing at F&F, the insurance contracts, poorly constructed as they were, would never have triggered. Let's look at the source of this mess: Washington. It's kinda dumb to expect a company to predict and prepare for complete market collapse. It's like preparing for a 10,000 year flood. You have to presume some things just can't happen.

Two, in hot or short markets people can get ridiculously expensive. Consider NBA players; 5 mill a year? That's not based on short term performance; it's pay for performance over time and we understand that. They sign legally binding contracts; and at the top, there are just too few adequate competitors vying for those slots. Same here. Top bankers are no more over paid that top basketball stars. They're both over paid. And they don't even save lives. Compensation is not distributed evenly.

Three. What to do? Well, if legality is your yardstick, good luck. In the end legality is not sufficient control; ethics is. And if anybody really thinks there's more of that in government than in private industry... Well, we know better, right. Find a Church; it might be the only thing that saves us.

Alan Wells of TN @ Mar 18, 2009 15:02:22 PM