More departures at AIG after bonus outrage

posted at 10:14 am on March 26, 2009 by Ed Morrissey

Jake DeSantis may have been the most publicly vocal departure at AIG after Congress and the media attacked his compensation, but he’s not alone. Reuters reports that several high-ranking executives at AIG have given notice.  The insurance giant, 80% owned by the US at the moment, says it can get by for now, but more departures could cripple their ability to pay back taxpayers for the massive bailout:

Several more employees are leaving the controversial financial products unit that brought American International Group Inc to its knees last year, according to a person with knowledge of developments there.

The resignations are in addition to the “handful” of senior AIG Financial Products executives who have already given notice, said the person, who could not quantify the total number of departures.

To date, AIG said the situation at the financial products unit remains “manageable,” despite the departures. But if too many employees quit, Chief Executive Edward Liddy has warned it could be disastrous for AIG and, ultimately, for U.S. taxpayers who are the insurer’s majority owners.

Reuters manages to report correctly on the bonuses, a breath of fresh air after two weeks of media screeching and hyperbole about the supposed villains getting rich off the taxpayer teat:

Employees there were promised retention payments more than a year ago, on condition they stayed long enough to wind down their areas of business, effectively working themselves out of a job.

But now some have changed their minds, fed up after 10 days of ridicule and scorn from lawmakers who broadly derided the bonuses, demonstrators picketing outside AIG offices and a threat by New York Attorney General Andrew Cuomo to publicly name anyone who did not return the bonuses.

The employees still working are not the ones who caused the large losses and “are being unfairly persecuted by elected officials,” wrote Jake DeSantis, an executive vice-president for the Wilton, Connecticut-based financial products unit, in a resignation letter printed by the New York Times on Wednesday.

Employers pay retention bonuses to keep employees in time-limited or unprofitable jobs.  Otherwise, as soon as a unit at a company hears that they will be shut down, the talent flies out the door, and the only people remaining are those who can’t get jobs anywhere else — not exactly the best and brightest.  Most if not all of these employees agreed to work in the Financial Products division after the collapse, not before, and had nothing to do with the abuses that created it.  They went there to rescue their own retirement portfolios, heavily damaged by AIG, and for the retention bonuses that AIG offered them as compensation as part of an employment contract.  Some, like DeSantis, only had a $1 salary, getting paid only if he stuck around long enough.

If the public threatens the safety of their families, the Attorney General threatens to prosecute them, and Congress threatens to take the money away they got paid for not seeking employment elsewhere, why should they stay?  And here’s an even better question: why should anyone take their place?   Would you work for $1 a year just so you could put your children in the gunsights of lunatics doing bus tours past your house and have the state’s top prosecutor pledging to come after you with all the tools at his disposal?  The people leaving AIG are literally irreplaceable under these conditions, and we need the FP unit staffed with knowledgable people if we want to see even a fraction of our investment returned to us.

This is what mob hysteria produces, and we can thank Congress and our “shaking with outrage” President for fomenting it.  They’ve put people in danger who had little to do with the actual wrongdoing, and deliberately encouraged the drooling, mindless reaction around the nation.  They’ve probably kneecapped any possibility of getting our money back out of AIG.  I hope people enjoyed their outrage parties, because we just paid $150 billion for them.


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Comments

Petraeus makes less than 200k a year. Not even comparable to what he could make in the private sector.

Socmodfiscon on March 26, 2009 at 11:11 AM

Public employees make low salaries because they are not worth larger ones.

Read between the lines.

I can’t speak for anyone, but I doubt anyone is talking about the military, sensitive Sally.

There is a world of difference between a federal wonk at some agency and an officer at a private firm. There is a huge difference between your average G-XX level career bureaucrat and people who work for private/public where profit/shareholder maximization is the goal.

reaganaut on March 26, 2009 at 11:11 AM

Chuck Schick on March 26, 2009 at 11:09 AM

Yes, the bush economic disaster still has consequences and still a bumpy ride.

Need a little patience Chuck.

getalife on March 26, 2009 at 11:13 AM

They could have and should have walked away rather sign contracts knowing their bonuses were being paid for by taxpayers any income they derived for their efforts would be seized by demagogues.

Socmodfiscon on March 26, 2009 at 11:00 AM

FTFY.

Yeah, any individual employed in any one of AIGs multiple divisions, profitable or not, is responsible for all of the failure. Furthermore, they should work without compensation if they chose to stay in the “insolvant, govt. controlled company.” Andy Cuomo says so.

I personally believe that we should have allowed AIG to go into bankruptcy, but perhaps you’re suggesting that the “insolvant, govt. controlled company” should be staffed by government employees?

obladioblada on March 26, 2009 at 11:13 AM

kingsjester on March 26, 2009 at 11:03 AM

Thank you. Those who want to smile at the execs leaving now can watch what little value is left at AIG jumping ship. or is that what’s called gallows humor?

*sigh*

WraithRat on March 26, 2009 at 11:15 AM

reaganaut on March 26, 2009 at 11:11 AM

I quoted the quote within the post I meant to quote…

Anyway, how many more canaries need to drop dead before people leave the friggin’ mine?

This is just unbridled insanity.

We can look and see what has happened and what is happening. We can reliably predict what will happen, but these clowns just keep going down the same path, because more than half of the country is too stupid, insane, or just doesn’t care.

There is a pandemic of maybethistimewillbedifferntitis.

Maddening to watch it all unfold…

reaganaut on March 26, 2009 at 11:16 AM

getalife on March 26, 2009 at 11:13 AM

You are aware that all legislation influenceing the economy is established by Congress, aren’t you? Bush wasn’t sitting in the Oval Office with a bank of levers and buttons, monkeying around with stuff….Congress did this….they created the framework within which the financial sector operated lawfully. Both Dems and Repubs voted for everything that poisoned the economy, and for the last 2 years of Bush’s final term, Dems were in a position to do something, and failed – even fraudulently obstructed such reforms.

LimeyGeek on March 26, 2009 at 11:17 AM

I took photos of some AIG Political Street Art. Note the ‘Burn the Banker’s part..

Urban Infidel on March 26, 2009 at 11:18 AM

A win win for the taxpayers.

getalife on March 26, 2009 at 10:53 AM

I can’t believe an Obama supporter would actually even post something like that.

Right now, your Marxist messiah is royally screwing us taxpayers, along with this country, squarely into the ground with his repeated rapes of the federal treasury.

The tax dollars that were given to AIG were a mere drop in the bucket compared to the overall amount the Organizer has stolen from its rightful owners.

Now he is moving to nationalize the banks:

http://newsbusters.org/blogs/jeff-poor/2009/03/26/fncs-morris-contends-obama-wants-bank-package-fail

And he won’t stop there, either. Soon, he will move to take over other private industries, including our nation’s health care system.

Now, if you will excuse me, I have to get back to sharpening my pitchfork.

-Dave

Dave R. on March 26, 2009 at 11:18 AM

Ed, it can’t be driven home explicitly enough with enough frequency:

a. AIG bonuses were known last year
b. AIG gave campaign cash to Obama & Dodd
c. Dodd lied about writing specific language to keep the bonuses – at the request of Geithner who also lied by trying to play dumb(er).
d. special bonus language was intentionally ignored by house and senate
e. the president intentionally ignored the same bonus language

All of this happened because: manufacturing synthetic outrage is designed to get Americans in the mood to allow government authority to start seizing unpopular private enterprise.

cpr on March 26, 2009 at 11:19 AM

Yes, the bush economic disaster still has consequences and still a bumpy ride.

getalife on March 26, 2009 at 11:13 AM

Gee, and I thought Congress wrote the Bills for the President to sign. Silly me.

dominigan on March 26, 2009 at 11:19 AM

I personally believe that we should have allowed AIG to go into bankruptcy

I personally consider the entire ‘bailout’ fiasco as fundamentally illegal vis-a-vis unconstitutionality.

Everyone that voted for these illegal bailouts should be impeached.

LimeyGeek on March 26, 2009 at 11:19 AM

What, you never heard of collective guilt?

N. O'Brain on March 26, 2009 at 11:20 AM

Insanity is also repsonding to uber-trolls like getalife and thinking that maybe, juuuuust maybe this time it will illicit a coherent, rational comment instead of some juvenile, democrat talking point from the crib sheet.

Yes I know “juvenile democrat” is redundant.

reaganaut on March 26, 2009 at 11:20 AM

personally believe that we should have allowed AIG to go into bankruptcy, but perhaps you’re suggesting that the “insolvant, govt. controlled company” should be staffed by government employees?

obladioblada on March 26, 2009 at 11:13 AM

I agree it should have been allowed to fail. Now it is being used as a money laundering service and these “bonus executives” are complicit in that as well.

Socmodfiscon on March 26, 2009 at 11:21 AM

Insanity is also repsonding to uber-trolls like getalife and thinking that maybe, juuuuust maybe this time it will illicit a coherent, rational comment

I’m living in hope that we’ll eventually see a mere glimpse of a functioning neuron….

LimeyGeek on March 26, 2009 at 11:23 AM

Funny how this reafirms the Wisdom of the Origional Constitution, and the Founding Fathers.

Once we have the Government seizing private property and companies and essentialy doing a “taking” (80% stock? Old stockholders got scroomed).

Then the President uses them as a political punching bag… in my view demeaming the office of the President…

Then Congress passes an illegal Bill of Attainder, and passes an Ex Post Facto Law… (both of which are clearly agains the constitution, as actualy written)….

Now, the consequence… company will go under and the TAXPAYER will be on the hook….

Romeo13 on March 26, 2009 at 11:25 AM

Socmodfiscon on March 26, 2009 at 11:21 AM

If those executives had been left to work without monkey-assed troglodyte harassment from economically ignorant dimwits, maybe the millions paid in bonuses would have been worth every penny if the company were able to recover and pay the billions back….now….you illiterate whiners can own the shitheap.

LimeyGeek on March 26, 2009 at 11:25 AM

Tims got this.

Everything is fine.

He’ll have to order them all back to work. I’d recommend it be for the dollar a year taxed at 90 percent like he talked about.

Remember, the Bush Depression is over.

Barack and Tim fixed it thank God. Now the grown-ups are back in charge.

Go back to goofing on the teleprompter.

hawkdriver on March 26, 2009 at 11:25 AM

Romeo13 on March 26, 2009 at 11:25 AM

This claim that the gubmint ‘owns’ 80% of AIG….is that even correct? What were the T&C’s of the bailout money?

LimeyGeek on March 26, 2009 at 11:26 AM

Then Congress passes an illegal Bill of Attainder, and passes an Ex Post Facto Law… (both of which are clearly agains the constitution, as actualy written)….

Not to mention that taxes be laid without enumeration….I think singling out a bunch of people for 90% taxation is enumerating them, don’t you?

LimeyGeek on March 26, 2009 at 11:28 AM

hawkdriver on March 26, 2009 at 11:25 AM

Dadgum. That was the best getalife impersonation I’ve ever seen. You’re starting to scare me, Hawk.

kingsjester on March 26, 2009 at 11:28 AM

Penny-wise and pound-foolish… the Obama Administration in a nutshell.

teke184 on March 26, 2009 at 10:19 AM

Naah.

1 Pound = 20 sterling, 1 sterling = 12 pence
1 pound = 240 pence (pennies).

And here we wasted $1,000 for every $1 we gained.

So you’ve overestimated this administration’s financial sense by about a factor of 4. They’re not skilled enough to qualify for penny wise and pound foolish.

gekkobear on March 26, 2009 at 11:31 AM

I agree. I noticed Obama’s lack of responsibility regarding stirring up outrage that then becomes nearly mob mentality in the primary.

He did it again with AIG.

AnninCA on March 26, 2009 at 11:32 AM

If those executives had been left to work without monkey-assed troglodyte harassment from economically ignorant dimwits, maybe the millions paid in bonuses would have been worth every penny if the company were able to recover and pay the billions back….now….you illiterate whiners can own the shitheap.

LimeyGeek on March 26, 2009 at 11:25 AM

That’s a pretty big IF, considering you are arguing to retain and generously compensate the people that screwed the company in the first place.

AIG should have failed.

Socmodfiscon on March 26, 2009 at 11:38 AM

My point is, I believe these execs were complicit in the failure of the company.

Socmodfiscon on March 26, 2009 at 11:00 AM

Your assumption is wrong, therefore your solution is wrong as well.

Vashta.Nerada on March 26, 2009 at 11:38 AM

Seriously–I hope someone has figured out how to safely put AIG into bankruptcy.

Neil Cavuto made the point that with AIG in the government gun sites who is going to do business with them? Every action is answerable to witch trials before the congress.

Barack Obama and the congress has made AIG toxic.

I don’t see how it can escape complete collapse now. The consequence of which will reverbiate through out the entire world.

I wonder how all those European supporters are looking at their pick now? I know the Euro leaders are starting to get it, but what about the streets. Do they understand the consequence of wishing for a weak America now? Because their rabid lies about Bush and the American military were certainly a factor in why Bush was not hailed as a hero all over the world for bringing democracy to the Middle East.

petunia on March 26, 2009 at 11:40 AM

Vashta.Nerada on March 26, 2009 at 11:38 AM

That is naive.

Socmodfiscon on March 26, 2009 at 11:40 AM

They’ve put people in danger who had little to do with the actual wrongdoing, and deliberately encouraged the drooling, mindless reaction around the nation. They’ve probably kneecapped any possibility of getting our money back out of AIG. I hope people enjoyed their outrage parties, because we just paid $150 billion for them.

Ed “Shaking With Outrage” Morrissey. Well written Ed. Thanks for your no nonsense analysis and explanation of these matters.

I have been using AIG with a friend of mine here from India who takes pride in how Indians financially help family and friends in need. I pointed out that Americans rarely do this and give to charities instead. He was complaining the other day about some friends he helped and was judging some of their recent actions. I pointed out to him that this is why his “system” doesn’t work. Once you inject financial support, you feel you have the right to judge their actions. Same goes for these companies. People and companies have to be free to succeed or fail on their own.

Mr_Magoo on March 26, 2009 at 11:41 AM

At least Getalife isn’t pretending to be a conservative, like some trolls we’ve seen …

Ed Morrissey on March 26, 2009 at 10:49 AM

If you send enough rounds down-range sooner or later you are likely to hit something. Anything.

Getalife is obviously firing blanks.

Yoop on March 26, 2009 at 11:42 AM

$85bn (£47bn) emergency two-year rescue loan in return for a 79.9% stake, control over all AIG’s assets and a veto on dividend payments.

This claim that the gubmint ‘owns’ 80% of AIG….is that even correct? What were the T&C’s of the bailout money?

LimeyGeek on March 26, 2009 at 11:26 AM

Have not seen the actualy docs, but every press report I’ve read had the same story…. 79.9% of the stock, representatives on the board, and with the almost 80% stock, control of the company…

Problem is, they didn’t use it.

Romeo13 on March 26, 2009 at 11:43 AM

I agree with Denninger.

Call the Whaaaambulance

Socmodfiscon on March 26, 2009 at 11:44 AM

Hell, I’d leave too. But I wouldn’t return my pay.

Screw you, come get it. I’ll be in Monaco.

mojo on March 26, 2009 at 11:47 AM

That’s a pretty big IF, considering you are arguing to retain and generously compensate the people that screwed the company in the first place.

AIG should have failed.

Socmodfiscon on March 26, 2009 at 11:38 AM

That is not true of the vast majority of those who came on with Liddy. Liddy was retired! He only came back after the fact to try to get things back on track.

And the real point of fact is that Congress is responsible for this whole mess! And Bush for not pushing harder for the regulation he wanted.

Congress–including the former Senator from Illinois–did this and they think they can escape accountability by pointing out that the top people working at companies like AIG make a whole lot more money than people working for unions!

It is basic class warfare tactics–the tried and true method to escape truth that Democrats use over and over and people buy it! Resentment that those people make more money than I do so they are dishonest.

Congress made it possible for all the shenanigans that went on by passing laws that encouraged these bad business practices and accounting games. Until the last few years, especially the last two years when the Dems took over… there were appropriate safeguards against irresponsible behavior.

petunia on March 26, 2009 at 11:50 AM

The AIG employee’s mistake was not forming a union.

mossberg500 on March 26, 2009 at 11:52 AM

Take your bonus money and run! If they come for your money, go to the courts!

myrenovations on March 26, 2009 at 10:24 AM

And get into the witness protection program, or is that also gone?

Obamathon is on the boob tube again. I guess it’s safe to say getalife is now giving his TV a tongue bath.

Stock Market starts tanking in 5….4…..3

Knucklehead on March 26, 2009 at 11:52 AM

Yes but there are divisions of this company that is worth much in the market. The too big to fail problem could be addressed by selling some of these divisions to get our money back.

A win win for the taxpayers.

getalife on March 26, 2009 at 10:53 AM

Ok, but while they’re breaking it up and figuring out which profitable parts exist to be sold; wouldn’t some staff who know what is going on, what is where, and how to break it up be handy?

Do you think staff like that are going to require maybe getting paid something for these efforts? Maybe actually paying them instead of promising to pay them, and then stealing what you promised them would be necessary?

Naah, surely they’ll work for free and not mind being robbed and scapegoated… right? Do you actually know people who work for free and enjoy being robbed and attacked? Because we need some people who enjoy being robbed, attacked, AND have specific financial knowledge… we’ve really made this job criteria specific.

Now, since we’re trying to break this company up into saleable parts; and we need people capable of doing this work to sort out all the parts, and we’ve just robbed and driven off the people we had doing that… what next?

Do we hire new people to figure out how to break up this company and double-secret probation promise that we’ll really pay them this time?

It’s only a win-win for the taxpayers when parts of it are ready for sale; which won’t happen when you run off the people doing the work of breaking it up.

Right now it’s more a lose (170 billion invested) lose (all the people needed to recoup any of this investment).

Sorry to ruin your mistaken view of what might be going on here… but I thought some actual knowledge might help your understanding of why this is what we conservatives consider a “bad thing”.

Of course if breaking up its salvageable parts and selling those separately was the plan; there is a Government institution that does this often, and reasonable well. It’s called “bankruptcy court” if I recall correctly… if we were going to let AIG go bankrupt, couldn’t we have done that without losing $170 billion dollars first?

How exactly is spending 170 billion dollars to let some inexperienced idjits in this administration try to do the work of a bankruptcy court, while also losing $170 billion dollars a win of any sort?

gekkobear on March 26, 2009 at 11:53 AM

Knucklehead on March 26, 2009 at 11:52 AM

No, as a matter of fact, the CinC is in Witless Protection.

hawkdriver on March 26, 2009 at 11:54 AM

you are arguing to retain and generously compensate the people that screwed the company in the first place

No. I am arguing to retain and generously compensate the people that stand a chance of salvaging something of value from this mess.

You are stupidly asserting that these people are all to blame and therefore deserve nothing. You have no evidence for this.

LimeyGeek on March 26, 2009 at 11:54 AM

That is naive.

Socmodfiscon on March 26, 2009 at 11:40 AM

I posit that I know a great deal more on this subject than someone who thinks the current employees caused the problem.

Vashta.Nerada on March 26, 2009 at 11:54 AM

No, as a matter of fact, the CinC is in Witless Protection.

hawkdriver on March 26, 2009 at 11:54 AM

But more importantly, is TOTUS in it?

Knucklehead on March 26, 2009 at 11:58 AM

Vashta.Nerada on March 26, 2009 at 11:54 AM

Oh Ok, well since you and Limey KNOW then it’s all good.

/Rolls eyes.

Socmodfiscon on March 26, 2009 at 11:58 AM

Getalife – When are you going to get a life? Obviously, Bush having only 4 letters makes it easier for you to speciously place ficticious blame on him in writing. You POS blamed Bush for the Clinton era recession. You blame Bush for the Obama era depression, all based on the one grain of truth of blaming Bush for the Bush era recession. Do you have acne on your arss? Bush is probably the blame for that too. Give us all a break and Troll elsewhere for a while.

Old Country Boy on March 26, 2009 at 12:01 PM

This is what mob hysteria produces, and we can thank Congress and our “shaking with outrage” President for fomenting it.

Well there seems to me to be enough blame for the fermenting of hysteria to go around and it’s not just limited to the left side of the aisle or liberal talking heads.

Texas Gal on March 26, 2009 at 12:02 PM

Rush Limbaugh just mentioned this post!

Enoxo on March 26, 2009 at 12:08 PM

Great job Ed. You are officially Rush’s number one go-to journalist.

carbon_footprint on March 26, 2009 at 12:11 PM

Rush Limbaugh just mentioned this post!

Enoxo on March 26, 2009 at 12:08 PM

Almost a daily routine now. Ed has his ear. Ed, ask him to do a riff on the new mandatory civilian service requirements.

a capella on March 26, 2009 at 12:15 PM

getalife on March 26, 2009 at 11:13 AM

You are aware that all legislation influenceing the economy is established by Congress, aren’t you? Bush wasn’t sitting in the Oval Office with a bank of levers and buttons, monkeying around with stuff….Congress did this….they created the framework within which the financial sector operated lawfully. Both Dems and Repubs voted for everything that poisoned the economy, and for the last 2 years of Bush’s final term, Dems were in a position to do something, and failed – even fraudulently obstructed such reforms.

LimeyGeek on March 26, 2009 at 11:17 AM

Bingo! Alas, your argument falls on deaf ears. This getalife is a one trick pony.

scalleywag on March 26, 2009 at 12:15 PM

If you’re really reading this Rush, tell me what your favorite cigar is!

LimeyGeek on March 26, 2009 at 12:20 PM

We have met the enemy and…he…is…us.

Yes, the bush Obama Franks Waters economic disaster still has consequences and still a bumpy ride.

Need a little Herculean amount of patience Chuck.

getalife on March 26, 2009 at 11:13 AM

unclesmrgol on March 26, 2009 at 12:21 PM

gekkobear on March 26, 2009 at 11:53 AM

Well done!

scalleywag on March 26, 2009 at 12:22 PM

The story and driving forces behind AIG (greatly simplified)
We took a pig in the poke and said this is an asset worth $1 and it has a future value of $2 as it matures. Using the full credibility of the company’s reputation and its fine Executives known to the financial world as wizards the mark buys the pig in the poke as an investment in the economy and the future. What is in the poke is maybe something worth 10 cents with a risky future value of 5 cents. The real value has already been taken out and paid to all the manipulators in the form of salaries and bonuses and reported as return on investments and profits that give the company a stock price a price to earnings ratio of 50 to 1 which means the company is going to grow to fill this shoe and will eventually fall to a range of 12 to 18 to 1 as earnings grow at a super rate investors are exuberant and buy stock and the balloon inflates to the maximum of the public relations folks can brag the company up as a hallmark blue-chip too big to fail. Everyone wants onboard even though they don’t know where the train is going but it must be okay because everyone is buying and maybe the government is guaranteeing some part of it how can you lose. The best and the brightest have been taking their money and stashing it away and living in opulence and lapping up the prestige of being the smartest or the smart and so on and so on. When reality catches up the best and the brightest are all crooks and should be punished and regulated by other crooks so this can never happen again.

“If you want to remain ignorant and free, you want what never was and never will be.” -Thomas Jefferson.
Newest bubble for a while will be gold it is already in the greater fool purchase mode and will remain there until the boom bust cycle completes its swing. Gold will never be zero but that doesn’t mean people won’t lose a bundle and it backs way off its high. This commodity is in high promote mode by all sellers who have jumped on the new bandwagon of selling the next sure thing forever.

“If you want to remain ignorant and free, you want what never was and never will be.” -Thomas Jefferson.

Free markets Capitalism remember: “Buyer Beware”

Socialism and other economic systems: Don’t work.
“Buyer Beware” “If you want to remain ignorant and free, you want what never was and never will be.” -Thomas Jefferson

rsl775 on March 26, 2009 at 12:24 PM

Why stay where you’re despised?

If only our “leaders” in Congress would show the same degree of common sense.

Y-not on March 26, 2009 at 12:27 PM

If only our “leaders” in Congress would show the same degree of common sense.

Y-not on March 26, 2009 at 12:27 PM

They’re not competent to ‘lead’ drunk Irishmen downhill.

They’re not my ‘leaders’…they’re my employees….and they suck and I want to fire the whole shabby lot of them.

LimeyGeek on March 26, 2009 at 12:32 PM

Y-not on March 26, 2009 at 12:27 PM

Zing! Winner – snappy comeback of the day!

scalleywag on March 26, 2009 at 12:32 PM

The dem/Obama Recession is liable to turn into the Obama/dem depression if the dems keep on with their vigilante tactics.

Johan Klaus on March 26, 2009 at 12:38 PM

IIRC Cuomo was responsible for getting the CEO of AIG forced out by (il)legal witch hunts.

jukin on March 26, 2009 at 12:45 PM

Need a little patience Chuck.

getalife on March 26, 2009 at 11:13 AM

you never answer. do you at least get paid for being a shill?

Jamson64 on March 26, 2009 at 12:49 PM

B Hussein wants to see a couple of AIG employees killed. That’s the only way to satisfy the bloodthirsty mob revenge he started.

mossberg500 on March 26, 2009 at 12:51 PM

gekkobear on March 26, 2009 at 11:53 AM

Whoa, whoa, whoa… let’s not actually use logic and reasoning to solve this situation.

There’s actually another issue with trying to sell of parts of AIG right now. Who the hell is gonna buy the remaining parts and at what value?

The M&A market has essentially dried up. And, any potential buyers may have a difficult time financing the deal, as the credit markets have seized up. Also, any potential buyer sitting on a stash of cash right now is more inclined to use the cash to weather the storm. Finally, if there were a potential buyer with the cash (or financing available), who the hell would want to touch AIG after the government tainted the entire organization by created such a hostile atmosphere?

So, IMHO, the best course has always been to put AIG through a restructuring to wind-down the FP division, and to provide the other divisions with enough “runway” to move forward profitably.

It’s unfortunate the government sees fit to ruin our 80% stake in the organization…

Neo-con Artist on March 26, 2009 at 12:53 PM

I know someone at A.I.G. being forced to take early retirement…hmmmm.

Dr Evil on March 26, 2009 at 12:56 PM

So A.I.G. is taking their Ball and Going home, they don’t want to play anymore:)

Dr Evil on March 26, 2009 at 12:58 PM

Yes, the bush economic disaster still has consequences and still a bumpy ride.

Need a little patience Chuck.

getalife on March 26, 2009 at 11:13 AM

“Mission accomplished -3/23/09”

-Getalife

Chuck Schick on March 26, 2009 at 1:00 PM

B Hussein wants to see a couple of AIG employees killed. That’s the only way to satisfy the bloodthirsty mob revenge he started.

mossberg500 on March 26, 2009 at 12:51 PM


That is over the top but the treatment of AIG execs was irresponsible.

Jamson64 on March 26, 2009 at 1:17 PM

Maybe Obama realized that eliminating the retention bonuses would drive the AIG people out and that is why he’s pushing his little brown-shirt “volunteer” groups. Maybe he intends to have all that “service” be performed at the private businesses he dooms? Who better to take over companies and totally destroy them than the braindead?

katiejane on March 26, 2009 at 1:41 PM

Giving o benefit of the doubt, after the outrage he most certainly could have publicly called out the targeting and harassment of the execs. But he did not do that which only leads one to believe this is playing out exactly as planned.

I’ve never seen so many self-serving idiots in all my life.

PrincipledPilgrim on March 26, 2009 at 2:29 PM

pain train on March 19, 2009 at 4:31 PM

While the hacks in Washington were worried about bread and circuses, this is what I was worried about.

pain train on March 26, 2009 at 2:42 PM

Jason 64
I’m not convinced its over the top. Having perused some lefty blogs they are calling for blood in the streets.

chemman on March 26, 2009 at 3:17 PM

And we thought the book was scary,John Gault has left and soon the lights go out.
Let us send the outraged mobs to Chris and Barney’s homes.Barney yelling for the beggers to get off his lawn would make a great U Tube.Chris has a nice place and I am sure he would share with the litle people.
6 Mos and they all call Reardon and ask how we fix this mess/
Answer will mostly be silence.
We have seen Oz and Toto will bite him in the butt.

Col.John Wm. Reed on March 26, 2009 at 4:00 PM

Would the executives with AIG, Fannie Mae, Lehman Bros, and others been able meet the standards of Midas Mulligan in Atlas Shrugged? I think he would have fired them all before they drove him to bankruptcy. I don’t think Ayn Rand covered this personality in the book or she assumed they were all in jail or unemployed or joined the ranks of Wesley Mouch and his ilk.

rsl775 on March 26, 2009 at 4:51 PM

They’ve probably kneecapped any possibility of getting our money back out of AIG. I hope people enjoyed their outrage parties, because we just paid $150 billion for them.

To quote that great thinker, Agent K…”People are stupid”.

ladyingray on March 26, 2009 at 5:00 PM

I’ve got the solution for the lost talent at AIG! Just hire some folks from ACORN. Im sure they have the intellectual capital to spare.

JeffVader on March 26, 2009 at 6:57 PM

All the AIG people should just walk out and flip the bird at Hussein. And start bus tours to bawney fwanks house.

dogsoldier on March 26, 2009 at 7:18 PM

Way to go Congress and President Obama. Set up conditions so that no executives would want to work for companies receiving bailout funds. Then, these companies will never be able to repay the taxpayers.

JohnInCA on March 26, 2009 at 8:28 PM

Who is John Galt?

hadsil on March 26, 2009 at 8:56 PM

Retention bonus?

RealDemocrat on March 26, 2009 at 9:03 PM

Unintended consequences.

I fixed it myself. Of course this is what Uhhhhbama wants – one more manufactured “crisis”. This one will not only give them the authority to move in and take over completely, but will also help them get the authority to come in and take over any company they want.

darwin-t on March 26, 2009 at 9:57 PM

If the public threatens the safety of their families, the Attorney General threatens to prosecute them, and Congress threatens to take the money away they got paid for not seeking employment elsewhere, why should they stay? And here’s an even better question: why should anyone take their place

?

The Democrats can’t even get President TelePrompter to properly staff Treasury; think they are gonna properly staff AIG?

Democrats: The Party of NO STAFF

TN Mom on March 26, 2009 at 11:04 PM

Giving o benefit of the doubt, after the outrage he most certainly could have publicly called out the targeting and harassment of the execs. But he did not do that which only leads one to believe this is playing out exactly as planned.

I’ve never seen so many self-serving idiots in all my life.
PrincipledPilgrim on March 26, 2009 at 2:29 PM

President TelePrompter has been screaming for months about ‘greed on Wall Street’ all while he was eating $100 wagu steak, jetting around on AF1, Lounging at Camp David, and taking a $500,00 book signing bonus….

TN Mom on March 26, 2009 at 11:08 PM

Who is John Galt?

hadsil on March 26, 2009 at 8:56 PM

John Galt is a fictional character in Ayn Rand’s novel ‘Atlas Shrugged’.

trigon on March 26, 2009 at 11:59 PM

I personally consider the entire ‘bailout’ fiasco as fundamentally illegal vis-a-vis unconstitutionality.

Everyone that voted for these illegal bailouts should be impeached.

LimeyGeek on March 26, 2009 at 11:19 AM

s
What is thie “constitution” thing of which you speak? I’ve not heard Barry, nor any of our elected officials mention such a thing. Are you suggesting there is some document that specifically defines what the Fed govt is empowered to do? That would seem strange. From listening to Barry, I thought the President and our elected officials could do pretty much whatever they wanted…unchecked. I’m pretty certian that’s what Barry meant when he said “I won”

Fed45 on March 27, 2009 at 3:07 AM

I just hear Steve Miller in my head singing..

Go on take the money and run!

The new AIG theme song.

Hawthorne on March 27, 2009 at 6:24 AM

More departures at AIG after bonus outrage

No problem.

sethstorm on March 27, 2009 at 6:26 AM

I work in Insurance. I would not even remotely consider working for AIG except on an hourly basis paid net 10. I’m a little busy helping some other insurance carriers avoid bankruptcy as it is but no sensible person would put themselves in this situation if they had any other option.

indyrowe on March 27, 2009 at 1:41 PM

It was their decision to RISK working for an insolvant, govt. controlled company with the assumption they would continue to receive multimillion dollar bonuses.

They could have and should have walked away rather sign contracts knowing their bonuses were being paid for by taxpayers.

===========================================================
Is this another example of Obama-Gibbs talking points? The reason I ask this is that the person who wrote this comment does not seem to have the full picture about the history behind when these contracts were signed.

The contracts were signed early 2008, not after TARP.

There are obviously a number of factors involved, but what seems clear is that the bursting of the bubble only became clear when there was a rise in the foreclosures.

This is not a mess created by George Bush (yet another hard left Socialist talking point). The mess was created when CRA was first signed. It was made worse when Obama went to Washington and lobbied to have changes in the Act that allowed the packaging of the sub-prime mortgages. This means that Obama is responsible in part for the mess.

However, it is more complicated because of a variety of acts of fraud perpetrated by a few in Freddie Mac and Fannie Mae. There are accounting irregularities and what is worse, there is more to be exposed in the very near future, which will be brought on by the “rescue” packages and doing the bidding of the Obummer administration.

Yes AIG is in the middle of the mess, but AIG execs did not cause the mess. Even the unit concerned did not cause the mess. The mess was caused by US govt interference with an act that demands that mortgages be given to people who cannot afford them.

There is also another reason for the mess: Most Americans, Australians, British and Europeans have been taking on too much debt. When you take on debt you have to pay it back. If your income is uncertain (I fell into the trap) then you should not take on excessive debt because the repayments will only barely touch the interest being charged.

People in the low income categories had no business asking for these loans in the first place. Surely there was some other way of working on the housing situation so that these people were not in this position. For example, here in Australia we have a state Housing Commission. Low income families are given the opportunity to go into these houses, and in the past had the option to buy the house they were renting. It was how my parents were able to afford their own home.

It seems that there are a lot of other reasons such as valuers being told to value property within a certain range etc. etc. Whatever, there are just so many factors involved. I would be pointing the finger at certain banks such as Countrywide if you want to find corruption.

maggieo on March 28, 2009 at 5:45 AM