Yeah, more Bitching about the Economy.
The New York Times : Business : By Edmund L. Andrews and Peter Baker; Published: March 14 2009
WASHINGTON - The American International Group, which has received more than $170 billion in taxpayer bailout money from the Treasury and Federal Reserve, plans to pay about $165 million in bonuses by Sunday to executives in the same business unit that brought the company to the brink of collapse last year. Word of the bonuses last week stirred such deep consternation inside the Obama administration that Treasury Secretary Timothy F. Geithner told the firm they were unacceptable and demanded they be renegotiated, a senior administration official said. But the bonuses will go forward because lawyers said the firm was contractually obligated to pay them.
A.I.G., nearly 80 percent of which is now owned by the government, defended its bonuses, arguing that they were promised last year before the crisis and cannot be legally canceled. In a letter to Mr. Geithner, Edward M. Liddy, the government-appointed chairman of A.I.G., said at least some bonuses were needed to keep the most skilled executives.
OK, now if I have this right, they are going to give $165 million in bonuses because these guys are SO good, they nearly brought the entire banking system to collapse? They are legally / contractually obligated to pay this out?
Mr Liddy, I have a fantastic suggestion for you, let them prove how good they are at math...
Two Options:
1) Your fired, so we are no longer obligated to give you Jack, and considering how good a job you did here, you'll most likely never work in this field again.
2) Your Not Fired, you forget the bonus idea; and you get another year to try and prove that you can turn this around, make the American Citizens who now Own 80% of this company enough of a profit that we won't even blink in paying you a little extra for the skill you showed in bringing the company back around.
Lets just see how skilled they are...
And just save that $165 Million to buy something that will make the company a profit, and earn them that bonus.
Pakka
WASHINGTON - The American International Group, which has received more than $170 billion in taxpayer bailout money from the Treasury and Federal Reserve, plans to pay about $165 million in bonuses by Sunday to executives in the same business unit that brought the company to the brink of collapse last year. Word of the bonuses last week stirred such deep consternation inside the Obama administration that Treasury Secretary Timothy F. Geithner told the firm they were unacceptable and demanded they be renegotiated, a senior administration official said. But the bonuses will go forward because lawyers said the firm was contractually obligated to pay them.
A.I.G., nearly 80 percent of which is now owned by the government, defended its bonuses, arguing that they were promised last year before the crisis and cannot be legally canceled. In a letter to Mr. Geithner, Edward M. Liddy, the government-appointed chairman of A.I.G., said at least some bonuses were needed to keep the most skilled executives.
OK, now if I have this right, they are going to give $165 million in bonuses because these guys are SO good, they nearly brought the entire banking system to collapse? They are legally / contractually obligated to pay this out?
Mr Liddy, I have a fantastic suggestion for you, let them prove how good they are at math...
Two Options:
1) Your fired, so we are no longer obligated to give you Jack, and considering how good a job you did here, you'll most likely never work in this field again.
2) Your Not Fired, you forget the bonus idea; and you get another year to try and prove that you can turn this around, make the American Citizens who now Own 80% of this company enough of a profit that we won't even blink in paying you a little extra for the skill you showed in bringing the company back around.
Lets just see how skilled they are...
And just save that $165 Million to buy something that will make the company a profit, and earn them that bonus.
Pakka