AIG Pulls Fast One — “Cash Awards” Going To Managers

When you are a pro at a scam–the definition of “scam” also can be found under the term “insurance industry” — you know how to try to pull a fast one. And aig1 AIG Pulls Fast One    Cash Awards Going To Managers is trying to pull one — under cover of the holidays…

…AIG — which is afloat only thanks to a bailout by you, the taxpayer, to the tune of $152 billion images1 AIG Pulls Fast One    Cash Awards Going To Managers and counting–made a whole lot of public relations when its top seven executives agreed not to take bonuses this year.

Well, on the eve of Thanksgiving, obviously knowing the markets would be closed on the holiday and obviously knowing that just before the holiday few people would pay attention, AIG actually notified regulators that, well, yes, bonuses would be given out, as Bloomberg News and The Financial Times reports today:

American International Group Inc., the insurer that said yesterday it scrapped bonuses for top executives after a U.S. bailout, will still pay 130 managers “cash awards” to stay with the firm

Will this never end? Why do they think they can do this…get away w/ this? How long have they been screwing us? When did it become ok to so openly lie and suffer no consequences?
Full article on huffingtonpost

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1 thought on “AIG Pulls Fast One — “Cash Awards” Going To Managers

  1. Stop messing with the markets! Congress needs to get their hands out of the piggy bank and let the markets find some equilibrium. Are we going to like that equilibrium? Probably not, unless you were betting short on everything. If you look at the stock market returns over the past 15 years it’s way out of proportion to historical returns. Now we’ve just had an 11 year correction down to the level where we should have been at. All this excess wealth we’ve been spending/borrowing shouldn’t have existed in the first place. And it wouldn’t have if the Fed hadn’t caved into banks’ requests to use their own internal (unregulated) risk models for determining how much cash to keep on hand. Once they caved, banks began making extreme bets on the market — primarily in credit default swaps, the core assumption of which is that you make money as long as people don’t default on their mortgages. However once they do, you’re screwed. AIG was in the really stupid position of insuring those bets. Basically if someone was going to loose money, AIG would foot the bill. This whole position relies on the housing prices to keep going up… but they’ve been even more ridiculously overinflated. When the housing bubble burst last year it was only a matter of time before AIG would be unable to keep up with it’s financial commitments. And since banks keep so little cash on hand, they can’t pay either. Lesson: if you make a stupid bet and lose, don’t come crying to me because I don’t want to foot the bill for you.

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