WTF More Bonuses for AIG Exec.

[ruf-porsche]

So if these exec didn't get their bonuses, AIG will fail? I don't see how giving a few exec big bonuses is going to erase the toxic debts that many of the banks have on their books and that AIG have insured these bad debts.

[Noah930]

Originally Posted by ruf-porsche

So if these exec didn't get their bonuses, AIG will fail? I don't see how giving a few exec big bonuses is going to erase the toxic debts that many of the banks have on their books and that AIG have insured these bad debts.

The rationale is that these execs are the ones who embroiled AIG in this mess, and that they're the only ones who can manage to un-do all the complicated dealings. So if they were to not get paid their bonuses, then they might jump ship. (To where?) If so, then there's no one left to unravel the mess. At least that's the theory.

Like I wrote in another thread: A company too big to fail, run by people too important to terminate (or pay nonexorbantly).

[ruf-porsche]

Ask anyone that have worked at a large corporation, and they will tell you that it is not the execs that does the day to day management of business, but middle management and all the little peons. The execs are just trying to "grow" the company.

[KFC911]

Originally Posted by ruf-porsche

Ask anyone that have worked at a large corporation, and they will tell you that it is not the execs that does the day to day management of business, but middle management and all the little peons. The execs are just trying to "grow" the company.

I've was a peon at two of the largest banks many years ago, and you are spot on imo. The execs at the top are all about putting the next "deal" together, and their ability (or lack thereof) to "run the business" speaks for itself in hindsight.

[Wickd89]

Is their behavior a type of treason?
They have done so much damage to the country for personal gain, that they should be tried.

How can you create a NEW unsecured swap product, and still be legal?
They sold insurance under a different name and not securing it. This must be illegal.

Imagine if I create a company, and told people that if they pay me $1M, I will make sure they get back $100M if their bad investments go south. I then use the $1M to live big an buy an island, and then when they ask for their $100M I tell them they can pound sand. I am pretty sure, I would go to jail... Why not them!!!

As financial institutions, there should be more rules than just the those for the standard product offerings.