Outrage I Can Believe In

[Gaspar]

sweet!

[Gaspar]

Oops.  Fannie May is paying $1 million dollar bonuses to their four top execs now too.  Sorry AIG, it sucks to be first.

Barney, I can't hear you, speak up.

[pmcalk]

For a different perspective, this is an interesting letter:

It is with deep regret that I submit my notice of resignation from A.I.G. Financial Products. I hope you take the time to read this entire letter. Before describing the details of my decision, I want to offer some context:

I am proud of everything I have done for the commodity and equity divisions of A.I.G.-F.P. I was in no way involved in — or responsible for — the credit default swap transactions that have hamstrung A.I.G. Nor were more than a handful of the 400 current employees of A.I.G.-F.P. Most of those responsible have left the company and have conspicuously escaped the public outrage.

After 12 months of hard work dismantling the company — during which A.I.G. reassured us many times we would be rewarded in March 2009 — we in the financial products unit have been betrayed by A.I.G. and are being unfairly persecuted by elected officials. In response to this, I will now leave the company and donate my entire post-tax retention payment to those suffering from the global economic downturn. My intent is to keep none of the money myself.

I take this action after 11 years of dedicated, honorable service to A.I.G. I can no longer effectively perform my duties in this dysfunctional environment, nor am I being paid to do so. Like you, I was asked to work for an annual salary of $1, and I agreed out of a sense of duty to the company and to the public officials who have come to its aid. Having now been let down by both, I can no longer justify spending 10, 12, 14 hours a day away from my family for the benefit of those who have let me down.

Letter continues here:  http://www.nytimes.com/2009/03/25/opinion/25desantis.html?pagewanted=1&_r=1

I'm not saying I agree with this guy, but I did not know that some of these guys were only being paid $1.  And, having gone throw a company's downfall, I know that you need a pretty hefty bonus to keep good employees on a sinking ship.  One million is a little high, though.

These people are just an easy target for outrage that has been building for a while.

[Gaspar]

For a different perspective, this is an interesting letter:

Letter continues here:  http://www.nytimes.com/2009/03/25/opinion/25desantis.html?pagewanted=1&_r=1

I'm not saying I agree with this guy, but I did not know that some of these guys were only being paid $1.  And, having gone throw a company's downfall, I know that you need a pretty hefty bonus to keep good employees on a sinking ship.  One million is a little high, though.

These people are just an easy target for outrage that has been building for a while.

+1 

They have been reporting the fact that most of the top end AIG execs withdrew their salary relying on their bonus structure.  Many regularly borrow money during the year knowing that they have the security to pay it back at bonus time.

Many of them have homes and lifestyles that they cannot afford without that million dollar bonus. 

I'm not defending their performance or decision making process in any way, but why would you blame them for quitting and moving to another company that is willing to compensate them closer to the rate that they have established for themselves.

This shouldn't be a shock to anyone.  Remove the retention bonus and you remove the retention.  AIG has very little possibility for survival now, and will end up being sliced up sold off, and all of the funds used to prop them up will now be for nothing.

Barney Fudd was told this would happen, and his response was to just "Fire Them."  Bless his heart, Barney has never run a business, but now he's learning.  I am confident that he will have an opportunity to grow through this  process and learn more about the consequences of his words and actions.  We have a huge investment in Barney to the tune of trillions of dollars now.  We need to make sure that his skills continue to grow so that he can better manage all of the financial institutions that he will preside over.

[we vs us]

For a different perspective, this is an interesting letter:

Letter continues here:  http://www.nytimes.com/2009/03/25/opinion/25desantis.html?pagewanted=1&_r=1

I'm not saying I agree with this guy, but I did not know that some of these guys were only being paid $1.  And, having gone throw a company's downfall, I know that you need a pretty hefty bonus to keep good employees on a sinking ship.  One million is a little high, though.

These people are just an easy target for outrage that has been building for a while.

I feel bad for them, because they're being unfairly scapegoated.  The "bonus," such as it is, is the entirety of their salary.  It's not -- as most of us might think --  extra pay for good performance. The problem is that the industry in general and the AIG CEO in specific failed to make that crucial distinction to congress and to anyone else that was listening.   Instead it sounds like they're being rewarded for tanking the economy.

IMO, the reason these bonuses were such a flashpoint is that to date there hasn't been any real accountability.  Aside from Madoff -- whose scheme was unrelated to the whole credit crisis -- no charges have been brought, and there don't seem to be any investigations into why this happened.  There were huge systemic breakdowns and no one has paid for that negligence/maliciousness yet.

This is one of the nagging problems of Obama's "looking forward" approach to governance.  We may be done with the past, but the past seems to definitely not be done with us.

[we vs us]

Also, if your company is in such dire straits that it has to be bailed out TWICE by the federal government, wouldn't you try to find a way to renegotiate your "bonus" structure into a real salary?  I understand that deferred compensation is the way a lot of that stuff runs, but seriously, isn't it obvious that most if not all bets are off at this point?

[USRufnex]

Oops.  Fannie May is paying $1 million dollar bonuses to their four top execs now too.  Sorry AIG, it sucks to be first.

Barney, I can't hear you, speak up.

Your mancrush on Barney Frank is crossing into Dick Army territory....    http://www.huffingtonpost.com/rep-barney-frank/is-there-an-antidote-to-t_b_176538.html

[Gaspar]

I feel bad for them, because they're being unfairly scapegoated.  The "bonus," such as it is, is the entirety of their salary.  It's not -- as most of us might think --  extra pay for good performance. The problem is that the industry in general and the AIG CEO in specific failed to make that crucial distinction to congress and to anyone else that was listening.   Instead it sounds like they're being rewarded for tanking the economy.

IMO, the reason these bonuses were such a flashpoint is that to date there hasn't been any real accountability.  Aside from Madoff -- whose scheme was unrelated to the whole credit crisis -- no charges have been brought, and there don't seem to be any investigations into why this happened.  There were huge systemic breakdowns and no one has paid for that negligence/maliciousness yet.

This is one of the nagging problems of Obama's "looking forward" approach to governance.  We may be done with the past, but the past seems to definitely not be done with us.

+2  One now and one later. 

[Gaspar]

  Your mancrush on Barney Frank is crossing into Dick Army territory....    http://www.huffingtonpost.com/rep-barney-frank/is-there-an-antidote-to-t_b_176538.html

I apologize for saying that Barney never ran a business before.  I forgot that one of his boyfriends did have a home business that he ran out of his DC apartment a while back, and I guess that counts.

If I recall correctly that business was engaged in the exact same thing Barney is doing to us.

My apologies.

[guido911]

AIG threatened by over-the-top moronic protesters:

http://www.nbcconnecticut.com/news/local/AIG-Threats-We-will-get-your-children.html

[USRufnex]

I apologize for saying that Barney never ran a business before.  I forgot that one of his boyfriends did have a home business that he ran out of his DC apartment a while back, and I guess that counts.

If I recall correctly that business was engaged in the exact same thing Barney is doing to us.

My apologies.

There you go again.  typical Sean Hannity talking points that conveniently ignore McCains economic guru Phil Gramm to focus on a house minority dem... indirect political bs from you gas... but brilliant use of the gay card... always plays really well with the "family values" base... 

[guido911]

I apologize for saying that Barney never ran a business before.  I forgot that one of his boyfriends did have a home business that he ran out of his DC apartment a while back, and I guess that counts.

If I recall correctly that business was engaged in the exact same thing Barney is doing to us.

My apologies.

You are correct. Frank's then-boyfriend ran a prostitution ring out of his residence. Frank denied knowing that was going on (yeah, whatever). Source: that uber-Conservative CBS News:

http://www.cbsnews.com/stories/2008/12/11/60minutes/main4663945_page4.shtml

[guido911]

Oops.  Fannie May is paying $1 million dollar bonuses to their four top execs now too.  Sorry AIG, it sucks to be first.

Barney, I can't hear you, speak up.

Ole Rhambo received over 300K from his stint at Freddie:

http://www.chicagotribune.com/news/politics/obama/chi-rahm-emanuel-profit-26-mar26,0,5682373.story

I demand he give that money back!

[Gaspar]

   There you go again.  typical Sean Hannity talking points that conveniently ignore McCains economic guru Phil Gramm to focus on a house minority dem... indirect political bs from you gas... but brilliant use of the gay card... always plays really well with the "family values" base... 

As I recall about 8" up the page, you were the one that implied I had a "Mancrush" on Barney.  I completely forgot he was gay until you brought it up. That's what reminded me of the scandal where they discovered his friend was running a prostitution ring out of Frank's DC apartment.  

I simply implied that may have given him some important business experience.  I didn't even mention the prostitution part.  Just didn't think it was important.  After all, business is business.

But I see your point, the family values crowd may have a problem with him for his personal activities, but that's their problem.  I was more focused on making a statement about his business experience.

Don't be jealous, you're still my #1.  

[USRufnex]

"The rose goes in the front, big guy..."