$160M bonuses < 0.1% of $170B bailout -- wake up and smell the red herring!

[eppur_se_muova]

AIG's handing out millions in bonuses AFTER receiving billions in bailout money makes for a great outrage story, but how relevant is it, really? OK, AIG mgmt made some really bad decisions, and the new mgmt needs to make sure that such things don't happen again. Find out what policy resulted in such bonuses being contractually guaranteed regardless of outcomes, and change them. Find out who was responsible and fire them (if they're not gone already). Chances are, the people and policies responsible are the very same ones that enabled the company to post all-time world record losses in the first place, and they need to face the consequences of such stupendously huge blunders. This further blunder is just one more drop in an already overflowing bucket -- it just took a little longer to come home to roost (to mix metaphors ever so slightly). It's not worth the bandwidth that's being wasted on it.

[BlooInBloo]

1. Dumb. Dumb. Dumb.

If they're giving bonuses to people who drove us straight into the ditch, what does that suggest to you they're doing with the REST of our money?

Duh.

[DS1]

2. Yes it is important goddammit!

That money does nothing for the country, it does wonders for the handful of leeching scum who took it. Why should I be propping up these useless cumsocks?

[Warren Stupidity]

3. Wrong. nt

[WannaJumpMyScooter]

4. every dollar we "loan" to shit like aig

is a dollar we can't use for helping people that really need help, so yes it matters

[leftstreet]

5. You make a good point.

I'd rather know where the rest went, but obviously they're not going to tell us.

It's similar to stirring up people over 'welfare queens' when the percentage of social services monies is NOTHING compared to, say, military expenditures.

[Tierra_y_Libertad]

6. It's a "Let them eat cake" moment. The author of which came to a bad end.

[Imagevision]

7. AIG is entitled to taxpayer money - Maddoff doesn't need to name co-conspirators - Change people!!!

[IDemo]

8. Principle is not a red herring

If it really is such a tiny fraction of the 170 billion, AIG should feel ok with doing without it.

[malaise]

9. Criminal charges should follow

The robber barons are looting the banks and the taxpayers' money

[Caliman73]

10. Not a Red Herring, a SYMBOL

We know that the bonuses are paltry compared to the trillions that have evaporated due to these corporations playing games with our money. We also know that earmarks are a small percentage of the budget. The thing is, and the outrage stems from the concept that these two small percentage items symbolize the attitudes and culture that allows people to bankrupt a company and walk away wealthy or that allow for horse trading for projects in back rooms with no accountability.

The relevance is that it gives us a small but important focal point from which to start. Bonuses and earmarks are not the end of the story, they are the beginning.

[sendero]

11. You know..

... there really is a principle involved here. These asshats should be collecting unemployment, not bonuses.

[aquart]

12. How completely foolish.

It's the "little" things like this that enable people to get a handle on situations. That alone makes it worth it. It becomes a symbol for all the greedy criminal wastefulness. Symbols are worth a fortune and should never be neglected.

Actually, you sound like one of those smokers who insist that smoking shouldn't be an issue because air pollution is so much worse.

[pa28]

13. $450 million now if that makes any difference.

While it's true these bonuses are only a drop in the bucket this particular episode has powerful symbolic value. It's a direct transfer of wealth from taxpayers to millionaires (in many cases). Nothing new there but the disguises sure have been stripped off and it's plain for all to see.

What I've come to believe we're paying for in the larger bailout is the cumulative result of years such excess and a culture of completely over the top equity stripping in the finance biz. The bill is now due with you and I paying dearly.

Stopping this particular payout would send a cultural message about what we'll tolerate from now on and what we won't - so I'm all in favor of wasting bandwidth on this issue. In fact I think we should waste some more.

[neverforget]

14. Failure should not be rewarded.

[C......N......C]

18. We all are not in this together.

For some this is the best of times, for another group they are secretly worried about losing their jobs but afraid to say something for fear or upsetting the applecart. For others it is complete denial. Some are like fans of a team, cheering a team on to a victory of which they will get nothing as fans. Some have just lost their jobs and are living on "hope". Other have already lost everything. Some are at desperate ends and are turning to crime. Others are completely aware of the whole situation but are powerless. And theoretically ( don't want to offend ) if you have a kid in Harvard Business School, you probably can't see anything at all wrong and you hope these left wing liberal commies will shut up and don't ruin your kids chance to make millions.

[C......N......C]

15. People go to jail for shoplifting

a bottle of aspirins, don't they? This is not just bad decisions it is fraud. If you sell something you know is bad, that is fraud. They sold crap. They need to be treated like criminals, not rich bad boys. But don't worry, nothing is going to happen, if Frank was really worried he would be rushing to pass some legislation like they do when some sensational event happens that doesn't affect their cronies.

[dysfunctional press]

16. the bonuses that aren't tied to company performance should be paid.

not all bonuses are created equal, and the word 'bonus' doesn't always mean the same thing at all companies or even for all employees/execs at a company.

if an executive employee's base bonus is say $50K for each year of service, plus an incentive bonus on top of that which is based on company performance- and they've been there 20 years- why shouldn't they bet at least the base part of their bonus?

for a lot of these guys/gals- their 'bonus' is the biggest part of their annual pay, and big parts of them are not tied to company performance- why should they have their pay yanked from them just because the hoi-polloi don't understand the companies bonus/compensation structure...? :shrug:

and i'm not saying that these numbers or the method described is what aig does- i don't really know how their compensation is structured- but neither do most of the people who have their undies in a bunch over all of it.

let's not get snookered into the uninformed outrage of distraction.

[Bandit]

17. Dumbest post I have seen here for quite some time

You have obviously missed the entire point.

[Belial]

19. Fire Obama??? and the Senate??? are you serious??

[mmonk]

20. Or it could be hush money

to certain executives as well as a reward for their behavior. Why would any who leave even receive bonuses?

[DireStrike]

21. Why were bonuses contractually obligated? I have the answer.

Because when you have one of those jobs, you get a lot of money no matter what you do. You are entitled as a member of the super-upper-predator class.

All companies operate this way and will not stop until the money is taken out of their hands.