An AIG executive packs it in:
I am proud of everything I have done for the commodity and equity divisions of A.I.G.-F.P. I was in no way involved in — or responsible for — the credit default swap transactions that have hamstrung A.I.G. Nor were more than a handful of the 400 current employees of A.I.G.-F.P. Most of those responsible have left the company and have conspicuously escaped the public outrage.
After 12 months of hard work dismantling the company — during which A.I.G. reassured us many times we would be rewarded in March 2009 — we in the financial products unit have been betrayed by A.I.G. and are being unfairly persecuted by elected officials. In response to this, I will now leave the company and donate my entire post-tax retention payment to those suffering from the global economic downturn. My intent is to keep none of the money myself.
Mark Steyn captures the impact:
I wonder if Senator Grassley (Republican, of course) is pleased that AIG honchos are now doing as instructed and falling on their swords. As I said a few days ago, if you own even modest assets (a small house, a savings account) and you think that in a battle between the political class and the business class it’s in your interest for the latter to lose, you’re a fool who entirely deserves the vaporization of his wealth on which Barney Frank & Co have embarked.
Read both.
” if you own even modest assets (a small house, a savings account) and you think that in a battle between the political class and the business class it’s in your interest for the latter to lose, you’re a fool”…depends entirely on what your source of income is. If you’re a university President, or a “nonprofit” exec, or a lobbyist, or a lawyer with a regulatory practice, or a senior government official or an elected official…then you’re almost certainly better of with a bigger, more powerful, and more expensive government. The personal benefits to you, in terms of both money and status, will outweigh the effect of the tax increases.
Just saw this on the email. I have visions of that H.L.F., Barney Frank grilling the CEO last week.
They gotta go..all the Franks of the World, before they destroy us.
b2
B2 — is a “HLF” anything like a “MILF”. If so, glad I’m batting from this side of the plate.
the comments on the NYT site are frightening and there are more than 800 of them…
This entire episode is taking on a surreal quality. As I have stated here before I hold a position the executive agrees with in that compensation on Wall Street had reached excessive proportions and the culture that created it contributed to the mess we find ourselves. But I had also steadfastly opposed the excessive grandstanding and histrionics of the the Congress and believe the proposed remedies utilizing the tax code to be unconstitutional and a very dangerous exertion of power with huge risks associated with it. Whether this resignation is but the first of many or the rest of the AIG FP employees will stay put and complete the shutdown of the enterprise remains to be seen. But the impact of the Congress’ irresponsible action in the House is surely being felt and complicating the delicate dance required to shore up and rebuild our financial system. And the consequences for them are exactly?
And so I ask: Who exactly believes for a minute that we are being led by those with sober reasoning and analytical consideration for the many intricate forces at work by those making decisions that very well might mean the end of our Republic as we know it? Does anyone think any member of the House Banking Committee – on either side of the aisle – gives any serious thought to the very real damage they do with half-baked legislation and mindless verbal whipping to the very people we are going to have to rely on to get us out of this crisis?
Does anyone really buy the logic a 5 year old can refute that was given as justifying a course of action that will triple and perhaps quadruple our national debt with even the most optimistic (and hence historically shown to be fantasy) projections of our annual deficits showing no chance of even beginning to pay down this crushing debt in the next several decades?
The answer is, for anyone seriously contemplating what this really means is of course not. Not even Obama’s most starry-eyed supporters can defend this course of action with any credibility and are forced, as even the President still lapses to, bring up the fact that “they inherited this all from Bush”. And the answer to that is, or should be, “So what?”.
Irresponsible government is irresponsible government and justifying doubling down on irresponsible actions because of a long history of it being done in the past is akin to a drunk blaming his lack of control to a bad alcohol-soaked childhood. One does not get sober without practicing sobriety.
That of course leads to the inevitable conclusion that if you cannot believe in the government you have then something must be done to change its policies or to change it, period.
Perhaps the Tea Parties planned on April 15th will mark the beginning of expression of the popular will to confront this madness. It took 2.5 years from the time of the little protest in Boston until Jefferson’s stirring prose declared that enough was enough.
Sadly I don’t think we have that long….
Today on “Morning Joe” on MSNBC (don’t ask why I was up at 0300 PCT) Scarborough (appropos of your “doubling down” on debt-financed spending) pointedly asked a guest: “So, OK, we’ve just diagnosed you with diabetes; so we’re going to cure you by doubling your intake of sugar, right?” LOL!! x2x2
These are just innocent people caught in the crossfire. The Administration wanted to pass maximum wage legislation and other draconian controls of corporations under the guise of “financial regulation.” So they got Congress to remove the anti-bonus provisions so that the bonuses could be paid, and the outrage could be stoked. With the public fuming mad about the bonuses, the new “regulations” have a decent chance at passing.
That, and no one seems to be noticing that the Fed is printing money to fill in the gap in the spending bills that can’t be financed. Printing currency with no economic growth to back it should be an outrage, but we’re conveniently distracted with the AIG BS.
So instead of this country’s financial problems getting solved, we’re making matters worse and punishing the people who least deserve it.
I believe it is today or tomorrow the Fed begins purchasing treasury bonds. That this has only been done in places like Argentina, Zimbabwe, and other countries and led to massive inflation seems to have missed the news cycle.
Nice to know where we are headed.
I’d ask VX if he can spare a dime as his silver stash is probably going to be quite valuable in the coming days but that would reveal a shameful lack of preparedness my naive faith in our country’s leaders has left me on shaky ground.
Boy, I find out something new about you every day, First it’s that your a slow learner who believes everything he reads in the newspapers, now I find you’re another one of those naive SOBs that probably thought Jimmy Carter was a refreshing change…which brings me back to the slow learner bit.
LOL – finally something made me laugh today. I just never thought I’d see the day when the entire Congress and the President seemed so hell-bent on self-destruction…As for Carter – he was the first of many Presidential Candidates I voted against. Latest one isn’t doing all that well with the NCAA brackets either last time I checked….
If we, the taxpayers, can pass judgement on just compensation for those in our new “quasi-public enterprises”, then do we have hire/fire responsibility? If we are outraged by their bonuses, then why aren’t we outraged by their continued employment? Congress has determined they don’t deserve bonuses. Why hasn’t Congress determined they don’t deserve jobs?
As if there isn’t enough to give pause to this madness. Treasury senses a softening of demand for our debt
This comes as no surprise, given the level of spending proposed while the E.U. and China scoff at our government’s attempts at getting them to come along on the spending express.
Softening demand? I am wondering what’s gonna happen when China wakes up and wants us to put up some collateral…… Oh, like maybe Oregon?
How about we give them Berkeley as a show of good faith?
O/T, but the Air Force dumped a Raptor.
http://news.yahoo.com/s/ap/20090325/ap_on_re_us/f22_crash
LockMart Test Pilot. I’m sick for that family.
Scott, by all reports these chaps are indispensable (for sorting out their own messes).
Spaz — I agree. But if they are needed to maximize the value of the taxpayers’ ownership stake, then they need to be paid what was agreed. Congress, and the pitchfork carriers, are trying to have it both ways. Sad.
It strikes me as completely counter-intutitve for all of this.
Am I right?
My take: “WE NEED STIMULUS!” Congress and the Prez comply. Money goes to citizens (who actually take money and pay bills, buy services and products, go on trips….then the money “stimulates” the economy). People get upset (I think it was more like anti-capitalists got upset – but no matter, it happened). Congress/Prez/Local Elected Officials now want to (to quote Nancy P) take “OUR! Money” back. (Emphasis like the OUR meant Congress, not the actual source of the revenue, the people on the street).
I really don’t get it. Money needs to flow, so they put it out, then haul back 90% and then tell us they will tell us how much we will make. (I know the real overall isn’t 90%, but in this case, it is – the bonuses)
Just how does that “stimulate” the economy, if you keep hoarding it in Government coffers (then used to buy more votes and hand out to “friendly” groups – Oh! Maybe I just found the answer!)?
That the pols advocate the violation of a contract is telling.
The Constitution is, in the final analysis, a “contract”: It is a contract between the people and the states, and the Federal Government–all three branches. Since violating an employment contract is acceptable, I suppose violating the highest contract of the land is also fair game.
Sigh.