AIG and Populist Rage

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AIG and Populist Rage

Posted by BradleyJohnson 1161 days ago, popular 1161 days ago (http://personalfinanceandinvesting.com)
Category: Business | Tags: aig bailout crisis finance

The AIG bonus situation is infuriating, but are we willing to throw out the rule of law over it? Very little about the situation is fair, yet we seem willing to throw out contract law in our anger?

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sunnyspeaks 1161 days ago

This is no surprise. AIG thinks that is has averted the economic crisis with this bailout money. The entire brass should be accountable for this.

opportunities 1160 days ago

Maybe the brass should be more accountable for this, but many of those bonuses were paid to low and mid level executives (oxymoron?) as recruiting bonuses, not performance bonuses. In addition, I have a huge problem with the government being able to go in to any company that has taken government money and essentially void legally binding, private contracts. That sets a very scary precedent that could reach far beyond AIG. It's another example of a government reaching to broaden its power base. Barney Frank and his grandstanding, when he's so involved in this (he knew all about the AIG bonuses long ago, not to mention his very public objections to reigning in Fannie and Freddie years ago) make me want to get violently ill.

BradleyJohnson 1160 days ago

It's also important to think about the consequences of letting any company know that if they accept government assistance, then the government has the right to go on a witch hunt against their employees.

pimpyourfinances 1160 days ago

I think I'm more frustrated with the government's horse and pony show than I am AIG taking a bonus. The government knew about it before they gave them bailout money, and didn't do a thing about it. Now they want to make a big stink about it? I don't buy it.

Plus isn't getting mad about a $160 million bonus after giving them a $170 billion bailout a lot like ordering a super-sized combo meal at McDonald's, then getting mad because they didn't give you a diet coke?

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