 For those of you out in Fauxvia who may consider this title a bit flip, remember we are describing a bunch of flops. Because all we have to do is watch the actions this week of the AIG Board of Directors. After being kept afloat by $170 billion dollars in bailout money, they are planning this week to give out 165 million dollars of employee bonuses. This they say, is required by pre-existing contracts, and also enabled by their friend George Bush who gave them bailouts with no preconditions. President Obama isnt pleased (to put it mildly), and Larry Summers was on record this weekend as to the administrations intent to explore every legal means to limit or eliminate this junk bonding (our words, not his) between executives and their own interests while remaining oblivious to the performance levels of their companies. This is why we now call it AINT I GREEDY. |
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We have common ground here. This is absolutely a waste of tax payer money. This is a failing business supported by tax dollars. How can you reward any executives in a failing company. Normally I would rail against the government telling private enterprise what to do but in this case I can't support AIG. They need to rethink this and fast.
ReplyDeleteThe bonuses were retention bonuses given to employees to help straighten up the mess. Many of the employees weren't even there when the mess started. According to recent reports, these employees were able to save the company almost a trillion dollars. Creating a special tax for the bonuses (imposing a Bill of Attaindment) is unconstitutional because it imposes a punitive damage on a special group of people without benefit of a trial.
ReplyDeleteAmanda, that is entirely wrong. Most of the employees that are receiving bonuses have been there for a while and helped create the AIG mess. The fact is that AIG is owned by the shareholders and now by the taxpayers and must be hled liable...
ReplyDelete