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The Audacity of an Insurance Giant

AIG Hypocrisy Alert Edition

While everyone including myself are outraged at the complete disrespectful regards to the American Taxpayers who have saved AIG from going under many ask a simple question, how could this happen? While some are taking the opportunity to gain political points and blames the Obama Administration for this oversight. Well let’s take a closer look before we start pointing fingers.

Sen. Ron Wyden (D-OR) is a member of the Senate Finance Committee. Last month he and Republican Sen. Olympia Snowe (R-MA) added an amendment to the stimulus bill that would have prevented companies, such as AIG the ability to distribute bonuses. But that amendment along with others was taken out of the bill. Hmmm… I wonder why and who pounded their fists in hypocritical outrage in regards to ‘earmarks’ and who helped hinder regulation that helped eliminate this amendment?

By-the-way, isn’t Sen. Snowe one of the three Republicans that voted for the stimulus package? (Reference Source) I believe she was, so she, the other two Republican Senators and the Democrat Senators are not to blame since they originally had this amendment. Perhaps they should have fought against the Republicans that didn’t oppose this a little harder. I guess that’s the only honest area of blame.

If I remember correctly Sen. Snowe is one of the Republican Senators the GOP was upset with? I believe Chairman Michael Steele even suggested something about withholding campaign money from the RNC and supporting their challengers because of this. (Reference Source)

So I suggest that we first investigating before we start pointing fingers, pounding on podiums with righteous indignation towards each other and getting on any form of media in efforts to promote what is essentially what I call a Scampaign against the truth in order to gain a measure of support. There’s plenty of blame to throw around, but I believe this one should be firmly directed at the crooks at AIG and not politicians of either party who are honestly working together to fix it.

You may argue with me, but I believe this is fair.

Now, in regards to the AIG $160 Million of ‘retention bonus’ money here’s the results of New York Attorney General Andrew Cuomo’s investigation of how those bonuses are being distributed.

  • One person who is no longer employed with the company is getting a ‘Retention Bonus’ of $6.4 Million U.S. Dollars.
  • The top 7 bonus earners received $4 Million U.S. Dollars each.
  • The top 10 bonus earners received a combined $42 Million U.S. Dollars.
  • There were 22 other bonus earners who got $2 Million U.S. Dollars each.
  • And wait for this one… 73 additional people at AIG got $1 Million each.

Now I feel really cheated now, because I’ve created some useful stuff at previous employers and the few times I did get a bonus it was absolutely no where in the vicinity of what the people who basically destroyed AIG is getting. Maybe it’s different at your job, or perhaps I’m in the wrong industry.

Of course the Democrats are suggesting the bonuses and/or any firm that the government holds 79% or more stakes to have a hefty tax imposed and bonuses capped.

Republicans, well at least the only one we’ve heard of that has a plan, Sen. Charles Grassley (R-IA) seem to have a different method of getting back the funds from the bonuses… “The first thing that would make me feel a little bit better towards them, if they had followed the Japanese example and come before the American people and take that deep bow and say, “I’m sorry,” and then either do one of two things, resign or go commit suicide.” Yahoo News – 03/17/09 “Senator Suggests AIG Execs Should Kill Themselves

U.S. Treasury Secretary is recouping the funds from AIG $30 Billion bailout. Since AIG got this in writing I think this is a logical and equally legal move by the Secretary.

Personally, I would be just as iron fisted as AIG and many others on Wall Street and just take the money. Once they’ve threaten to take me to court I would simply tell them to sue me, before I completely take over the company. Once I’ve taken over I would simply carve out this division that caused this mess into its own individual entity and allow it to fail. I would get quite a few people upset with me on many sides, but to deal with a gangster you do what they do, but only legally.

Tell me what you think about this AIG hypocrisy and what you would do?

References & Inspirations
Media Matters – 02/26/09 “AP Ignored Democrats’ Response to Earmark Criticism: 40% are from Republicans

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2 thoughts on “The Audacity of an Insurance Giant

  1. Al says:

    Hi Tim,

    Thanks for the great post! Hope your weekend is progressing along as you would like. Have a terrific week ahead sir.

  2. We need a new business model — one in which profit maximization never comes without consideration for social welfare; where company jets never come before flexible and quality working arrangements for workers; where success is measured in years and not in quarters. And above all, we need to stop believing that “talented” people are the multimillionaire businessmen, instead of the teachers, the firefighters, the social workers, and the community performing artists.

    Both Democrats and Republicans talk about needing to promote “small business owners,” but it’s the big, greedy ones that are running/ruining our system of capitalism. I think if everyone cut down on shopping at the nationwide retail chain stores and started patronizing local businesses, that would do more to restart capitalism than tax cuts and bailouts would.

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