7 Surprises Buried Beneath the AIG Bonuses

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soundtracks of AL 5:30AM July 17, 2009

According to another article in the Washington Post, politicians in Washington knew about and approved the legislation that authorized bonuses to AIG executives months before those bonuses were to be paid. http://www.washingtonpost.com/wp-dyn/content/article/2009/05/12/AR2009051203624.html.
Their phony "outrage" at the bonuses being paid to executives of a failing company was nothing more than political showboating to encourage voters that this new administration was going to "do something," even if what they wanted to do violated the U.S. Constitution.

cheryl c of MI 5:08PM June 14, 2009

This was a company that was systematically looted for decades by the prior management (who also lead the company into the very ill fated derivatives/financial products fiasco). For years, a pittance in dividends were paid and often the measly dividends were paid out in the form of (now nearly worthless) stock. Meanwhile, management and the directors were diverting billions of dollars to related entities that were controlled by them and their cronies.
May family lost over $100,000. in AIG stock. We sold out at $5.50. Now its time to fold the company - wipe it out and hold the parties responsible through the courts of law (including Hank going to jail).
These funds that were diverted should have been paid out to the stockholders as real dividends and/or held as reserves for the insurance entities.
The credit derivative swaps should have been voided on the grounds that they were 1.)fraudulent 2.) unlicensed insurance products 3.) unlicensed securities.
A special government commission should be taking this action on the remaining "portfolio".

Timbo of FL 8:34AM April 16, 2009

To all,
Just finished reading Rick Newman's article about "ten cars that sank Detroit" What a bunch of BS. How about we we all live in the past? How about the Honda CVCC? What a piece of junk! Barely went 55 mph.The joke was that if you had an accident in one you did not need a coffin - it just crumpled into one. There are plenty of American ( and Japanese) cars on the road from the eighties( and even the 70s)that people have taken care of. There have been ford taurus that went 300 000 miles that people took care of , and toyotas that died at 100 k, ( and toyotas that went 300k that people took care of)I am sorry you have such disdain for your own auto industry ( your attitude is not helping the industry recover). Your idiotic attitude is not helping. This is 2009 not the 1970s. Rick Newman is a class A moron. I am so tired of people like you that are stuck in the 70s. How about focusing on cars that helped Detroit recover? Detroit had plenty of success in the 80s and 90s.

Ed Walker of CO 1:12PM April 04, 2009

Just 438 people caused AIGs problems? Where was executive management? What was the board of directors doing? Are you trying to tell me that management and directors just got their bonuses and never even considered what the "438" were doing? That is one perspective, but I seriously doubt it. I believe that the "438" are simply scape goats and the total responsibility rest totally upon upper management and the board of directors. It doesn't matter if their act was one of commission or one of omission, they cann't delegate responsibility for their failure to perform their duties. They should be held criminally and civilly responsibility. If this leaves them destitute, why shouldn't they share the same situation that their irresponsibe behavior caused others?
Accoring to an article in the Washington Post (The Real AIG Disgrace)http://online.wsj.com/article/SB123793914378932263.html
The ones remaining in the disgraced unit of AIG are not even the same people that caused the problem. The politicians in Washington are simple attempting to cover up their own blunders and make these AIG employees Scape Goats. This is typical politician behavior and is not confined to either political party. The American public should become aware of how their political system functions and start holding all politicians -regardless of party- responsible for their behavior. If you are going to get irrate over the situation, research multiple creditable papers of different political leanings to get a balanced perspective. Do not rely entirely upon the biased political trash (both sides) that is readily available on the internet.

Don of KS 2:18PM March 31, 2009

What exactly is the difference between AIG and Enron? They both made up exotic toxic securities, traded them until they made a round trip, took huge bonuses, and then ruined the company and stockholders. Some AIG people should be looking at criminal charges.

Rick T of IL 7:28PM March 30, 2009

Goldman Sachs is sitting on about 100 billion in cash. Goldman Sachs has repeatedly indicated they have no material exposure to AIG. The only conclusion that can be drawn from their 13 billion dollar payment from AIG bailout money is that it came from CDS 'bets' that went Goldman Sachs way. In other words, they profited from the malaise in the financial system. Their bonuses is all that really matters. Many Wall Street firms appear to function in a manner akin to a parasite. A parasites only motivation is self preservation. There is no consideration for the health of the host organism. In many cases the host eventually succumbs. The host, in the case of United States, has been put on life support as other countries continue to buy our debt - piling it on future generations. Thing is, the parasite is still threatening the host.
Solution: Got to get rid of the parasite or cut off the blood (money) supply.

Jose of CA 12:44PM March 29, 2009

Maybe I am missing something, but if we have invested $170 billion in order to gain an 80% "ownership" in AIG, why not throw what appears to be another $30 billion at it, take control, and let the FDIC sort that mess out? This way at least we as taxpayers stand a better chance at recouping our tax dollars, by at least having a portion in solid assets to fall back on. Unless the 80% "we" bought was all the garbage that AIG was on the hook for.

R. Valone of IN 5:48PM March 27, 2009

Perhaps this is too simple minded, but I firmly believe that any company that requires the US government to bail them out should not be allowed to hand out million dollar bonus's to an employee or organization. I'm very much in favor of collecting any tax payer money back from poor CEO decisions and the willy nilly ways of wall street. Companies that do not need US government money and can survive on their own can do what ever they want. AIG, Citi, Wachovia, BofA, etc are all on the list and employee bonus's should be recovered. This includes bonus's, gifts, retention awards, presents, grants, bestowments, and any other lingo that the financial companies might use.

JCS of CA 1:50AM March 23, 2009

Laws changes retroactively are a danger. It could happen to any, currently happy, as a USA citizen,and all other human beings. It (that law) may be the norm for "fourth" world countries. AKA "politically" correct.

Raymond Husslein of NY 11:31AM March 21, 2009