How far can this AIG mess go? It’s bad enough that the taxpayers handed over in excess of 180 billion to the financial giant, but nothing compares to what just happened. Not the fact that 200 million went out in bonuses. That’s an ethical issue to be debated in bars and living rooms throughout the country. That our congress insists on yet another inane kneejerk reaction to it is what we really should be upset about. Americans are protesting outside the homes of AIG executives, when it should be on the mall in Washington. It is simply another example of horrifically misguided anger on all sides of this mess, and serves as a blind diversion to the real issues at hand.
Why do we suddenly care about 200 million, hardly 1.5 percent of the amount given to AIG? These were contractual bonuses, and the inclusion in the original bailout of the provision that allowed them saved a small fortune in potential legal fees. Who in the world would not sue for their bonuses when it was clearly written into an employment contract? Lawyers would have a field day with this. Now, Chris Dodd must fight for his political life for doing exactly what some rather intelligent lawyer told him to (I am leaving out the little flop-flop of denial, however).
Isn’t the real issue, considering the global nature of AIG, the amount of the bailout that has been siphoned overseas? Not to mix the bailout with any stimulus package, but Americans have the right to believe that cash handed to a corporation in the U. S. should, at the very least, stay here. Since transparency has not yet (ever?) hit AIG, we have no idea. Whether the bailout was necessary is a debate left for those far more intelligent than I, but a high I.Q. is not necessary to realize that a politician handing out taxpayer dough has a responsibility to know exactly where it is going.
And I.Q. is the primary reason we should not have such a huge issue with these legally-mandated bonus payments. Economists all over the globe cannot fully understand, never mind explain, the AIG mess. Many of the executives responsible have since left the company, some not so voluntarily. It would be a very prudent move to keep as many of those involved, those that actually understand this disaster, in the rolodex. Concern needs to be paid on the return of the 180 billion, and if 200 million in bonus payments is the best shot we have at keeping the ones that can make that happen onboard, and also avoids the millions in additional legal fees we would have faced should Mr. Dodd left that one line out, then why would we fight this? If the employees can be coerced into voluntarily returning the cash, as some already have, great. Short of that, we need to just let this one go.
