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AIG to pay out $100 million in bonuses

Discussion in 'The Okie Corral' started by Trebuchet, Feb 4, 2010.

  1. Trebuchet

    Trebuchet Sláinte !

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    AIG to pay out $100 million in bonuses

    NEW YORK – American International Group Inc. is set to pay out about $100 million in a fresh round of bonuses to employees of its financial products division, the unit whose risky bets helped sink the company leading to a $180 billion government bailout, according to reports published Tuesday.

    AIG agreed to cut the retention bonuses by $20 million but will still hand out $100 million Wednesday, The New York Times reported, citing people with knowledge of the negotiations.

    The Washington Post, also citing people familiar with the situation, said the retention payments are for employees at the division who agreed to accept 10 to 20 percent less than AIG had initially promised them two years ago. In return, they are getting their money more than a month ahead of schedule.

    AIG is still due to pay out tens of millions of dollars more in March, mostly to former employees who did not agree to the concessions, the Post reported.

    A message was left with an AIG spokesman seeking comment.

    New York-based AIG faced intense public and Congressional criticism last March when it paid out hundreds of millions of dollars in retention bonuses to employees months after receiving the government bailout.

    When the credit crisis hit in the fall of 2008, the U.S. government rescued AIG from the brink of collapse in exchange for an 80 percent stake in the insurer. AIG's near collapse was not due to its traditional insurance operations, but instead risky derivatives contracts written by the financial products division.



    Good thing we bailed them out...:upeyes:
     
  2. Steve0853

    Steve0853

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    Well....I'm ambivilant about this.

    Naturally, I think it was wrong to bail them out. And I don't understand giving bonuses for poor performance.....even though these are "retention" bonuses.

    However, AIG had valid contracts with these employees to pay them a certain amount at a certain time. Some of these employees did negotiate down, some did not.

    Since I am a taxpayer and presumably a portion of the "Federal Government bailout", and since AIG owes a lot of money to the Federal Government, I want them to be able to pay this money back.

    If their best employees, who actually can perform, leave the company because of broken promises or because another company CAN pay them their agreed upon salary, then it becomes less likely that AIG will be able to repay the Federal Government.

    In other words, it is to our advantage for AIG to prosper. They are unlikely to prosper if their best employees take off for another employer.
     

  3. MavsX

    MavsX The Dude Abides

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    rat bastards!
     
  4. Doc Holliday

    Doc Holliday CLM

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    This is an ongoing joke at the expense of the American Public.
     
  5. Seaworm

    Seaworm

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    +1 - well said.

     
  6. airmotive

    airmotive Tin Kicker

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    Anyone who makes more money than me is evil and doesn't deserve their obscene profits.
    Anyone who makes less money than me is lazy, undeserving and should have made better choices in life.
     
  7. G33

    G33 Frisky! CLM Millennium Member

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    You guys bought into the "bonus" lie.
    Media and democrats won that round.
    :whistling:
     
  8. american lockpicker

    american lockpicker License to Il

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    This wouldn't happen if we didn't have capitalism. :whistling:
     
  9. Bilbo Bagins

    Bilbo Bagins Slacked jawed

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    A) They signed a contract, and AIG has to uphold that contract. If a football player signs a 5 year $500 million dollar contract, and he blows his knee out on the opening play, unless you written an injury clause in the contract, you still got to pay him.

    And B

    http://www.property-casualty.com/Ne...-Regulatory-Cracks-Say-Paulson-Geithner-.aspx

     
  10. certifiedfunds

    certifiedfunds Cosmopolitan Bias

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    The payout of the bonuses bother me much, much less than watching the President of the United States target the recipients.

    Which does more harm to our Republic?
     
  11. Hucklebarry

    Hucklebarry Native

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    These "bonuses" are part of their compensation package. AIG is contractually obligated to pay them. As posted above, the fact that the feds are trying to attack these people is far more alarming.
     
  12. CharlestonG26

    CharlestonG26

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    Something just doesn't seem right about this. In fact...it smells.
     
  13. boats1

    boats1

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    Good post.
     
  14. aerod1

    aerod1 NRA Life Member

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    Would they have gotten the bonuses had we the people not bailed them out? I don't know.:dunno: However, this does seem like a real scam on us, the taxpayer.:steamed:
     
  15. JohnH

    JohnH Millennium Member

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    You've got to be kidding? AIG was insolvent. Their employees wouldn't be getting anything if they hadn't been bailed out by the U.S. taxpayer. Those employees that were responsible for their hugely misguided credit default swaps are getting huge bonuses. AIG took a huge gamble on those swaps and lost. They didn't have the reserves to cover their loses. I don't care if their bonuses were negotiated ten years ago, they would be last in line behind a long list of creditors and they wouldn't have gotten anything.

    Then Treasury Secretary, Hank Paulson, a former Goldman Sachs CEO, orchestrated a totally illegal bailout of AIG and the counter party to those swaps, one of which was Goldman Sachs. During the crisis, Paulson put in former Goldman Sachs board member, Ed Liddy, in charge of AIG. Goldman Sachs got paid 100c on the dollar for swaps that were worthless. When the Obama administration came into power, Geithner continued the ripoff of the American public. Paulson, Geithner, and Bernanke need to go to jail, and AIG needs to be broken up and sold off. And the American taxpayer should get all the bailout money and bonuses through clawback.
     
  16. JohnH

    JohnH Millennium Member

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  17. Isaiah1412

    Isaiah1412

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    Any company which accepts a bailout needs to have its employees locked at civil service pay rates until all funds are paid back. Too late for this bunch but I'm sure it won't be the last round of "too big to fail" handouts we'll see.
     
  18. RenegadeGlocker

    RenegadeGlocker

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    One of the conditions of accepting bailout money should have been these contracts were nullified.

    AIG Eecs do not want to agree to that, no problem. Let them go under.
     
  19. FullClip

    FullClip NRA Benefactor CLM

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    If the "bonus" is taxable, then at least 25% of the bonus is returned to the taxpayers.....or, actually, put back into the slush fund in DC. So, after 4 years...100% of the money is paid back....:whistling:

    The bonuses paid are a drop in the bucket compared to the money spent bailing out the company...but it POs most people when they see some exec for a 'corperate welfare' recipiant get a bonus seveal times their annual income.

    No matter how you run the numbers, it just doesn't seem right. Perhaps if they called the money something other than "bonuses" it would be more palatable to most people.
     
  20. DEADLYACCURATE

    DEADLYACCURATE Senior Member

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    :steamed: