Senior executives who destroyed AIG wake up to the sweet smell of a billion dollar bonus package from American taxpayers – possibly reduced to a mere $165 million – for doing their job so well.
Here’s a possible explanation:
- Failures Have the Right Stuff: The majority of Americans are not only “allowed” to fail, we’re told that failure will make us stronger and more resilient.
- The rich, super rich and mega rich have emerged as the weaker class. It’s well understood that these “talented” people simply do not have what it takes to fail. So the US Government must come to their rescue with tax dollars squeezed from Americans who have the right stuff.
- Mega corporate bailouts are now an accepted form of socialism for the wealthy. The US Government has taken a bold stand. People at the top of the pyramid should receive assistance – at any cost – to keep their lifestyle and talent distinction, so that Americans of lesser talent can gracefully and gratefully fail.
See the following Bloomberg story (excerpted below):
March 15 (Bloomberg) — “American International Group, Incl, the insurer saved from collapse by a $170 billion taxpayer bailout, was ordered by the U.S. Treasury to scale back its $1 billion plan to give retention pay and bonuses.
“AIG agreed to reduce some retention payments in 2009 by 30 percent and tie bonuses to the company’s recovery, according to a person briefed on the matter and a letter from AIG Chief Executive Officer Edward Liddy. The New York-based insurer still plans to distribute about $165 million on March 15 because of legally binding contracts, said the person, who declined to be identified because the talks weren’t public…
“AIG, whose fourth-quarter loss was the worst in corporate history, earmarked $1 billion in retention pay for about 4,600 of the company’s 116,000 employees so they won’t leave the crippled insurer. Liddy has vowed AIG will repay “every penny” to the U.S. for its bailout package by selling subsidiaries, and said the retention pay for talented people helps taxpayers by making the units attractive to buyers.
“Geithner telephoned Liddy on March 11 to demand changes to AIG’s plan, an administration official said separately. The Treasury didn’t try to halt the March 15 payments after determining that AIG was legally bound to make them.”