It seems to be a recurring theme at AIG (American International Group) who in all there wisdom have decided to pay out bonuses that were promised to there employee's in the very department that caused there massive problems.
Millions in bonuses at that.
They are stating that they need to pay these bonuses out to retain the highly skilled and knowledgeable staff that can help get them out of the mess they are in. They also have stated that they are bound to pay these bonuses as they were agreed upon prior to the US Government stepping in and handing them bailout money. They feel that refusing to pay out these bonuses at this time would open them up to lawsuits.
I would think in light of the current problems and investments made by the American Government at the taxpayers expense that they would have more than enough recourse to forgo any bonuses. After All many Americans and people from around the world have been told that we are going to be forgoing bonuses, raises and in some cases employee's have incurred pay and hour decreases and even lost jobs and in many casses these reductions or losses are not due to poor job performance but poor economic performance.
President Barack Obama is steaming right along with the rest of the American taxpayers on this one. 80% of AIG's outstanding stock is effectivly owned by the taxpayers as part of the bailout package for AIG.
US Treasury Secretary Tim Geithner contacted AIG’s Chairman and CEO Edward Liddy on Wednesday over the bonuses but in the end was informed that for the most part AIG's "hands are tied."
Too big to fail?
Then they should be broken up into manageable divisions and separated from each other.Should we as American taxpayers feel sorry for the people at AIG?