Property Grunt

Sunday, March 15, 2009


Well Madoff is now in getting 3 hots and a cot. However he still maintains that he is the sole perpetrator of his crime. Of course there are others who beg to differ. Myself included. There is more to come for the Madoffs and those that were close to him.

Now this is awesome.

A.I.G. Planning $100 Million in Bonuses After Huge Bailout

WASHINGTON — The American International Group, which has received more than $170 billion in taxpayer bailout money from the Treasury and Federal Reserve, plans to pay about $165 million in bonuses by Sunday to executives in the same business unit that brought the company to the brink of collapse last year.

Word of the bonuses last week stirred such deep consternation inside the Obama administration that Treasury Secretary Timothy F. Geithner told the firm they were unacceptable and demanded they be renegotiated, a senior administration official said. But the bonuses will go forward because lawyers said the firm was contractually obligated to pay them.

The payments to A.I.G.’s financial products unit are in addition to $121 million in previously scheduled bonuses for the company’s senior executives and 6,400 employees across the sprawling corporation. Mr. Geithner last week pressured A.I.G. to cut the $9.6 million going to the top 50 executives in half and tie the rest to performance.

The payment of so much money at a company at the heart of the financial collapse that sent the broader economy into a tailspin almost certainly will fuel a popular backlash against the government’s efforts to prop up Wall Street. Past bonuses already have prompted President Obama and Congress to impose tough rules on corporate executive compensation at firms bailed out with taxpayer money.

A.I.G., nearly 80 percent of which is now owned by the government, defended its bonuses, arguing that they were promised last year before the crisis and cannot be legally canceled. In a letter to Mr. Geithner, Edward M. Liddy, the government-appointed chairman of A.I.G., said at least some bonuses were needed to keep the most skilled executives

“We cannot attract and retain the best and the brightest talent to lead and staff the A.I.G. businesses — which are now being operated principally on behalf of American taxpayers — if employees believe their compensation is subject to continued and arbitrary adjustment by the U.S. Treasury,” he wrote Mr. Geithner on Saturday.

Still, Mr. Liddy seemed stung by his talk with Mr. Geithner, calling their conversation last Wednesday “a difficult one for me” and noting that he receives no bonus himself. “Needless to say, in the current circumstances,” Mr. Liddy wrote, “I do not like these arrangements and find it distasteful and difficult to recommend to you that we must proceed with them.”

First of all this excuse that they need to retain their talent is complete bulls**t for 3 reasons.

1. Obviously if these a**holes were top talent they would not have gotten AIG into this mess in the first place. The way bonuses work is that if you do a good job, you get rewarded for your efforts. If you f**k up you get nothing.

2. Where are these talented f**ktards going to go? There are no jobs out there for anyone. The financial industry is getting whittled down to the marrow. These AIG's employees have no incentive to leave, in fact they want to stick around.

3. This legal obligation to pay bonuses is bulls**t. Any business person worth their salt knows that one of the prime directives of business is "Anything is negotiable." AIG can easily construct an airtight alibi to cut the bonuse just like IBM is using creative methods to layoff its employees in a fashion that won't draw the ire of legal problems.

Offers for jobs can easily be retracted and even the most strongest deals can fall apart. Why doesn't AIG want to do that? Because they are f**king lazy and they don't give a f**k. There is no incentive for them to change.

This is our tax dollars at work and it is money that is not being put to good use. The bonuses range from $1000 to $6.5 million and covers 400 employees. Do they really need this money? I don't think so. I know these people could really use it.

If anyone from AIG is reading don't even think for a second you are sitting on the catbird seat. People are not only going to remember this but they are going to demand action. And this is not the time to throw straws at a camel's back. People are on the f**King and this is the type of bull**t that puts them over the edge.

The best case scenario is that the government says " You guys are a bunch of douchebags who don't know when to quit. We are taking over and nationalizing everything."

The worst case scenario? Expect some very unfriendly company for dinner bringing torches and pitchforks. Do you think I am being crazy? Well ask John Thain. I heard a story that protesters showed up at his home and it required the cops to clear them out.

Honestly, I would like to avoid that. But if AIG f**ktards keep up with this bulls**t, well, that go bag is going to come in real handy when the angry horde burns and pillages everything in Wall Street.

So for the love of Mike AIG, please think about what you are really doing.