So it’s been a while since I last blogged because my time is very tight lately…I’m working, looking for a new position in the company, taking a class to get my Six Sigma green belt certification as well as a beekeeping class given by the Montgomery County Beekeeper’s Association here in Montgomery County. Even so I’m trying to keep up with what’s been going on in the state of economic affairs and last night’s New York Times story about A.I.G. is a doozie.

A.I.G., once the world’s largest insurance company and who has to date taken $170 billion dollars from the U.S. government (i.e. taxpayers) in bailout money is now planning to pay $165 million dollars in bonuses to executives in the same business unit that last year brought the company to the brink of financial collapse (Andrews, Edmund L. and Peter Baker, “A.I.G. Planning Huge Bonuses After $170 Billion Bailout“, The New York Times, March 14, 2009). The reasoning, according to the government appointed chairman Edward Liddy is that

We [A.I.G.] cannot attract and retain the best and the brightest talent to lead and staff the A.I.G. businesses — which are now being operated principally on behalf of American taxpayers — if employees believe their compensation is subject to continued and arbitrary adjustment by the U.S. Treasury

(Andrews, Edmund L. and Peter Baker, “A.I.G. Planning Huge Bonuses After $170 Billion Bailout“, The New York Times, March 14, 2009)

Retention bonuses? Where does Mr. Liddy really think these guys (and gals) are going to go in today’s Wall Street environment? Mr. Liddy also points out that these bonuses are contractually obligated in that they were agreed upon in the early part of 2008 — before A.I.G. fell apart and that both A.I.G. lawyers as well as Treasury Department lawyers have determined that there is no way to abrogate this contract.

This is truly an insult to the American taxpayers who are currently keeping A.I.G. afloat. In my mind these executives who are offered the bonus should be told that their services will no longer be needed if they take the bonus. The American taxpayer should not have to be continually insulted by Wall Street this way. We’re the ones who are bailing them out…it seems that A.I.G. executives still haven’t figured this out and seem to be playing the game as though they deserve this money. When will this administration and Congress get it. If they don’t find a way put a stop to this nonsense and these institutions that have taken taxpayer money in order to survive continue to behave this way then it will be the voters of this country who will make their voice known in 2010. And if that means that every single Congressman (and woman) and Senator should be voted out of office then that’s just what it might take.

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