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TechnoratiPut These Guys in Guantanamo: AIG Gives $450 Million of Bailout Cash to Just 400 Employees
Bloomberg news is reporting this evening:
AIG Said to Offer $450 Million in Retention Pay to 400 Derivatives Workers
Jan. 27 (Bloomberg) -- American International Group Inc., the insurer saved from collapse by government money after losses on credit-default swaps, offered about $450 million in retention pay to employees of the unit that sold the derivatives, according to two people familiar with the situation.
About 400 workers at the financial products unit may get the money in two installments, said the people, who declined to be named because details of the payments were confidential. The business was responsible for about $34 billion in writedowns since 2007 as the market value of swaps AIG sold to banks plunged amid the subprime mortgage market collapse.
The payments bring to more than $1 billion the amount AIG has committed to keep its employees from leaving. The New York- based insurer in September took a federal bailout to avoid bankruptcy and is selling subsidiaries to repay the government. AIG said the program was disclosed before the government rescue, which is now valued at $150 billion.
"I was extremely disappointed -- but not surprised -- to learn that AIG will be awarding bonuses to the very division that drove the company into the ground," said Representative Elijah Cummings, a member of the House Committee on Oversight and Government Reform, in an e-mail. AIG shouldn't be awarding "millions of unmerited dollars to employees while at the same time begging the U.S. government for financial life support." full article here...
13 Comments so far
Show AllSo does this make sense? We are have an enconomic collapse basically due to a bunch of greedy sociopaths, so we give them money and expect them not to act like the same bunch of greedy sociopaths.
We're being farmed!
This is hush money to keep them from spilling the beans on just how hard we've been screwed!
Public treasure to reward the elites gambling at the wall st. super-casino! When they sing "land of the free, home of the brave" they're singing about the elites, not the people. This land is of, by and for the elites, this land is of, by and for the elites, from California, to the New York Island, from the Redwood forest to the gulf stream waters, this land is of, by and for the elites. Product of the pseudo-left's appeasement strategy! Go along to get along!
They'll probably get their bonus checks while staying at an exclusive resort, after flying there on private jets. With over 3 million people out of work, I would have thought they could have fired the idiots, and easily found more fools to work for minimum wage, and then the top execs could pocket the savings. Must be their version of charity and helping out their fellow mankind, I suppose.
Congress is requiring the union auto workers (whose incomes are a small fraction of the AIG pirates' incomes) to take a pay cut while their industry gets a $15 billion bailout with many strings attached. Meanwhile AIG and the banks that caused the meltdown get $700+ billion carte blanche.
It really is the best Congress money can buy !
the president's blackberry is jammed with 'thank you' text messages from 400 frothing aig employees
“I think anybody who doesn’t think I’m smart enough to handle the job is underestimating.”
[George W. Bush]
WTF, Will some one send this to the Presidents blackberry! Come on we took the names now kick some ...
Why? Do you think that this president isn't in on the plunder of America?
This isn't Obama's fault.
That money was doled out before he became president.
I'm sure his administration is already investigating this and will take action.
It's not like Obama isn't busy!
"It's not Obama's fault."
As a campaign gimmick he did yank away from McCain (and Bush) ownership of the bailout back in September. But even if you give him a break on that...
Why the silence now?
Where's the outrage now?
He owns it.
Us little people are pissed.
I'm sure Obama shares your outrage.
Save your anger for AIG.
BTW why the moniker, "Joe"?
Should I assume you are some kind of cyberstalker or idiot pothead?
Humbaba,
The appointment of Tim Geithner as SecTreas seems to me to be an excellent indicator that the foxes are still in charge of our hen house.