Bingo!

et al. LOL . Probably some to shut Wen up!

A matter of contract law, what a load!

I some of these AIG people wrote in a default on CDS papers if they themselves left the companyu, that has to be fraud.

Enough of this nonsense. We now know AIG was used to bailout various other financial institutions, away from the public’s prying eyes. It was effectively a money-launderer for Goldman Sachs, et al, so it wouldn’t look like they needed a bailout. This bonus baloney seems designed to divert attention from fact of the money laundering. If the politicians were really outraged, they could fix the bonus problem easy enough. But they can’t fix the reality of municipalities, investment banks, and commercial banks needing massive amounts of dough to survive as presently configured, nor the reality that they are likely to need massive amounts more. It seems AIG might have paid the bonuses to divert attention from money laundering, and to shut people up that are on the inside and could have blown the whistle to all this nonsense.

If AIG had been allowed to bankrupt, and its counterparties been forced to line up in bankruptcy court hoping for some recovery, there is a very real chance that this financial system slide into oblivion would be nearly over by now. Instead, AIG and its counterparties’ losses have been collectivized, weakening the system even further, and lessening the chances of recovery any time soon. Like all government market interventions, the rescue of AIG to save the financial system seems to have accomplished the exact opposite of its intent.

SANTELLI: Now, think about it this way. Maybe I’m missing something. But the outrage seems to be about M’s, millions of dollars, right? $165 million, OK?

But I would think that it should be looked at as a pretty big positive, because when you go from the M, maybe you should try to go to the B’s, which is the billions of dollars, and maybe that’s going to even enlighten it for the T, trillions of dollars. You know, $165 million is like worrying about 16.5 cents, while $165 maybe necessitates a little more outrage. What do you guys think?

BECKY QUICK: Hey, Rick, I think the real idea here is just the idea of rewarding bad behavior, which is something you’ve spoken out against in the past.

SANTELLI: No, I guess what I’m saying is it’s an order of magnitude. Don’t you think this dynamic that the average guy reading his newspaper is really starting to be in tune with this?

And I think bonuses really strike a cord as to the dynamic you’re talking about. But there’s many degrees of intensity if one really wants to shine the light on the money that’s being scrutinized. You know, there’s Ms, Bs and Ts. I just want to know what people think.

“2. Few commenters understand or are willing to admit they know why bonuses and commissions are paid.”

Their paid because they’re greedy little sniveling snots who feel that since they’re handling your money and a lot of it they should get a small percentage, which amounts to a lot of money because they work at a big company.

“5. AIG is the prime example of why the automakers should be forced into bankruptcy so that they can legally renegotiate all contracts.”

This has nothing to do with the auto companies, your pointing your finger at them just illuminates your bias. Why don’t you pick on an industry your own size?

Barry, you obviously copied this down wrong…I fixed it for you, though. No, don’t thank me…

Mr. Obama said, “How do I justify this outrage to the taxpayers of my keeping this company afloat with their money?”……

We don’t need any pay to retain them, just put them in jail where they belong.

AIG cannot meet all of its contractual obligations without government assistance. That’s what being insolvent means: you can’t pay your bills. Bills = contracts.

Many contracts contain insolvency/bankruptcy contingency clauses. Rare indeed the compensation agreement that contains no wiggle room or hedges by the employer.

The U.S. government is 80% shareholder in a company that is incurring massive, unprecedented additional debt in order to pay creditors. Any shareholder in his/her right mind would cry foul to protect what little he/she might recover through liquidation or Chapter 11. If AIG was leveraged 30:1 in 2007-08, where the hell is it now??? Clearly this is money that no one ever expects will be repaid.

These are not ordinary times. Lincoln suspended habeas corpus. Truman nationalized the steel mills. That’s where we are at. The extent of the right to contract and the interpretation of contractual terms is defined by the state. We’re in the constitutional twilight zone of Executive Power responding to national/global emergency.

Sanctity of contracts my ass.

A retention bonus. Not a gift.

The money should even but somehow guaranteed so there is a comfort level for employees.

Excluded from the plan would be the folks that were part of the problem. And with the govt owning 80% we shoudl not lket the stupid things occur.

Whether he likes it or not, Prez Obama is the commander in chief of the turnaround. And the same for the rest of the administration. The ball is in their court and its not being volleyed effectively.

So, are we in crisis mode or is our economy fundamentally sound. Can’t have it both ways and it does not change weekly.

If I was hiring a turnaround specialist for my business I would want one who knows what he is doing. Same for the Doctor I hire when I am having surgery.