AIG to Hand Out Another $165M in Bonuses

Obama and his team hasn’t learned after the first 300Billion dollar taxpayer give-a-way, that when you give people money for nothing, there is not intrinsic value to them and they throw it arrogantly away, which is why welfare, especially multi-generational welfare, doesn’t work.

Troubled insurer American International Group (AIG: 0.4815, 0.0626, 14.94%), which is 79.9%-owned by the federal government, will pay $165 million in retention bonuses on Sunday to those at the division that has drawn most of the heat for the company’s near-collapse.

Last I looked America was at a 9% unemployment rate. I am quite sure we could find other “qualified” personnel to just as easily send AIG into the toilet and for a lot less pay.

The developments have drawn more negative attention to an insurance company that the Treasury Department and Federal Reserve have committed up to $170 billion to help stabilize itself after dangerously betting much of its future on a now-illiquid market.

Last year, the company disclosed it would pay $450 million in bonuses to keep employees at AIG Financial Products, the division that focused much of its business on credit default swaps. The bonuses range from $1,000 to $6.5 million, with seven employees making more than $3 million each.

Oh wait, it gets better:

Through the criticism and outrage, AIG has said it recognizes the problems with these payments, but continued to stress the need for the bonuses.

“We cannot attract and retain the best and brightest talent to lead and staff the AIG businesses which are now being operated on behalf of the American taxpayers,” AIG chairman and CEO Edward Liddy said in a letter to Treasury Secretary Timothy Geithner on Saturday.

Who are the bigger idiots I may ask? The leaders and hand-outs of AIG, or our own socialist President who is pushing so hard for these bailouts, they are not reading the 900 page document that goes along with it. Typical of congress to vote on bills they have not read.

More of the story here


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