AIG Staff Kept Bonuses They Promised to Return

[kpete]

Source: Bloomberg

AIG Staff Kept Bonuses They Promised to Return, Feinberg Says

By Hugh Son

Oct. 23 (Bloomberg) -- American International Group Inc.’s highest paid executives in the unit blamed for pushing the insurer to the brink of collapse haven’t returned bonuses as they’d promised, according to the Obama administration.

Four of five managers in AIG’s Financial Products unit that are under the jurisdiction of pay master Kenneth Feinberg didn’t make good on pledges to return the bonuses as of August, Feinberg said in documents released yesterday. The fifth employee hadn’t made any promise, Feinberg said.

“The performance of AIG Financial Products has contributed significantly to the deterioration in AIG’s financial health,” Feinberg said. Compensation proposed by AIG for the staff doesn’t “adequately reflect the role of AIG Financial Products” in the decline of the insurer, he said.

AIG, which received a $182.3 billion U.S. government bailout, ignited a backlash after giving about $165 million in March to its derivatives staff. President Barack Obama called the bonuses an “outrage.” The New York-based insurer said the pay was needed to keep staff to unwind money-losing derivative trades that regulators said could destabilize the global financial system.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aynr.OOkoPRg

[hobbit709]

1. Get a rope

[supernova]

2. Take it all and make

them them sign up for welfare.

[bertman]

3. I am shocked that those lying, gambling assholes would do such a thing.

[tazkcmo]

5. lol

Me too. So blind sided by this I can barely type.

[hyphenate]

12. Shocked? No, weary

I live on a little over $1000 a MONTH for disability. It doesn't shock me to see this kind of behavior, as we saw it only a couple of years ago with such luminaries as Ken Lay, Jeff Skilling, Dennis Koslowski and other sickening people. It is simply, Same Shit, Different Day. It will continue to happen as long as greed is considered a civil right.

I've gotten very tired of it all. As Michael Douglas said in Wall Street, "Greed is good." And yes, I suppose it is, as long as you start with being selfish right out of the starting gate. To hell with the rabble: you will be using them as your stepping stones to the top. 'Nuff said.

[NRaleighLiberal]

4. THIS is why self regulation cannot work. Greed trumps all.

It is why trickle down doesn't work. It is why Republicans are completely bankrupt of ideas - because everything they propose is for the rich to get richer.

[KansDem]

6. In a related story: Ticks still need to be pulled off dogs...

Where's my bonus?

[no_hypocrisy]

7. Paging AG Andrew Cuomo . . . .

He doesn't put up well with this nonsense.

[Hepburn]

8. What a shock...

....not.

They really, really need to have some controls put on them. I wish to hell the would have been allowed to fail.

[mule_train]

9. I'm beginning to think they are incompetant and selfish nt

[mule_train]

10. Why in the hell was 180 billion taxpayer dollars handed over with no accountability"

try doing this (imagine me as peter griffin from family guy)

go to your community bank, and say

'yeah, i've been living very recklessly, and i need about $500,000' right away, or the community will get hurt in the fallout'

'well, ok, lets talk about the terms'

'uh yeah, that's not going to work - it's really better if you just give me the money and not ask questions'

[Ruby the Liberal]

11. Friday night news dump time?

[JuniperLea]

13. I'm so very glad I no longer work for AIG!

Life is hard enough!

[OhioChick]

14. Greedy Fucks. n/t