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Posts Tagged ‘AIG bonuses’

AIG Bonuses and Lockups: Add Another $454 Million!!

Posted by Larry Doyle on May 5th, 2009 7:35 PM |

Do the letters AIG make you nauseous? Recall the uproar over AIG paying $165 million in bonuses last year? Well, get the barf bag ready because Reuters just reported that AIG also paid the following in bonuses in 2008, along with commitments in 2009:

. . . paid some $454 million in previously undisclosed performance bonuses to employees for 2008, the company said in answers to questions from a U.S. lawmaker that released on Tuesday.

Why were these bonuses not previously disclosed? AIG is a government owned entity!! What’s going on? Where’s the transparency and accountability?

. . . about $120 million corporate bonus pool designated for holding company employees and executives at subsidiary companies.

Why? Is this what government work pays these days? Where do I apply?

 The payments are separate from $1 billion in retention payments to entice employees to stay with the company.

Are you kidding me? With unemployment in the financial industry off the charts, and this firm having cost the government billions, the idea of paying retention bonuses is APPALLING!!!

Lastly, what is up with Reuters final statement:

The company also told Cummings [Representative Elijah Cummings, a Maryland Democrat] AIG’s bonus plans for 2009 were under development, “in consultation with the Federal Reserve and Treasury.”

What am I missing? What consultation is necessary? The consultation should be nothing more than, “when the company returns to profitability and Uncle Sam gets a return on his capital, we may consider paying bonuses. That may not happen anytime soon. Please get back to work . . . oh, have a nice day.”

Shouldn’t take more than 20 seconds, maybe 30.

What am I missing? What is America missing? Who is accountable?


Friends Like This…Who Needs Enemies

Posted by Larry Doyle on March 19th, 2009 12:36 PM |

Senator Dodd did not exactly fall on the sword for the Obama administration as Bloomberg reports, Senator Chris Dodd Blames Obama Administration for Bonus Amendment.

The very legislators who rushed through the Stimulus Bill, which included provisions to prevent AIG-like bonuses, are now railing and pandering as never before.  Who are these politicians? Nancy Pelosi, Harry Reid, Barney Frank, Chuck Schumer, and many more. Treasury Secretary Geithner Vows to Recoup AIG Bonuses as Lawmakers Express Fury.  Geithner himself feigned ignorance of his knowledge of these AIG payouts. 

What do we learn from this sort of political circus? (more…)

AIG: Ain’t It Great!!!

Posted by Larry Doyle on March 18th, 2009 8:54 AM |

Where can one generate billions in losses and still walk out the door with millions in compensation? Welcome to AIG, now known here at Sense on Cents as “Ain’t It Great!!” 

As details leak out of Congress as to who knew what and when did they know it, the level of political posturing is soaring. Senator Charles Schumer (D-NY), who has fed at the Wall Street trough for years, offers us these pearls of wisdom: “We intend to do everything in our power to prevent the payments from being made and to recoup the payments that have already been made. We will take this back and return it to its rightful owners, the American taxpayers.”  Chuck, where were you six months ago when the initial AIG loan was negotiated? (more…)

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