AIG: A bunch of morons?

[Norse]

AIG spend their money wisely.... (http://www.washingtonpost.com/wp-dyn/content/article/2008/10/07/AR2008100702604.html)

Joseph Cassano, the financial products manager whose complex investments led to American International Group's near collapse, is receiving $1 million a month in consulting fees.

Former chief executive Martin J. Sullivan, whose three-year tenure coincided with much of the company's ill-fated risk-taking, is receiving a $5 million performance bonus.

And just last week, about 70 of the company's top performers were rewarded with a week-long stay at the luxury St. Regis Resort in Monarch Beach, Calif., where they ran up a tab of $440,000.

At a House committee hearing yesterday, Rep. Henry A. Waxman (D-Calif.) showed a photograph of the resort, which overlooks the Pacific Ocean, and reported expenses for AIG personnel including $200,000 for rooms, $150,000 for meals and $23,000 for the spa.

"Less than a week after the taxpayers rescued AIG, company executives could be found wining and dining at one of the most exclusive resorts in the nation," Waxman said in kicking off an angry hearing of the House Committee on Oversight and Government Reform. "We will ask whether any of this makes sense."

Is there any wonder the economy has gone to hell?

[Iron Past]

I think they're looking to take the money back somehow; hope the idiots (AIG) get screwed.

[QueQueg]

I don't think they're idiots. I think they're heartless, soul-less scumbags. Brilliant assholes.

[TheEpicOfTyler]

They should all be fired.

[QueQueg]

They should all be fired.

Sadly, it probably wouldn't make a spit of difference individually to these guys. They'll go across the street to another bank, hedge-fund, w/e, and make even more money in the process.

Hefty fines directed at the individuals involved would be more painful and appropriate.

[cppcrusader]

Sadly, it probably wouldn't make a spit of difference individually to these guys. They'll go across the street to another bank, hedge-fund, w/e, and make even more money in the process.

Hefty fines directed at the individuals involved would be more painful and appropriate.

And they'll cross that street by floating over it with their golden parachutes.

[Widgetcraft]

They should all be hanged.

Fixed that for you.

[Johan]

My brother works for AIG. He said it saddens him that his limo rides home no longer come with free blow, liquor, and hookers. He had to give up one of those, so now he has to bring his own beer. Damn economy! :D

Actually, in all seriousness, I'm thinking some of y'all are blind to the fact that most of the people that work for any particular company have nothing to do with day-to-day executive decisions. I know he didn't, and now he's taken a tremendous financial hit.

Take a deep breath, folks. If you want to get anyone hoisted on their own petard, it should be executives. AND CONGRESS!

[QueQueg]

It should be whoever was involved in the trip to happy-fun-land on the taxpayer's dime. I don't think anyone has suggested that everyone at AIG is responsible for this. The exec's who went on the trip certainly are responsible, and should be held accountable.

[Bone]

My brother works for AIG. He said it saddens him that his limo rides home no longer come with free blow, liquor, and hookers. He had to give up one of those, so now he has to bring his own beer. Damn economy! :D

Actually, in all seriousness, I'm thinking some of y'all are blind to the fact that most of the people that work for any particular company have nothing to do with day-to-day executive decisions. I know he didn't, and now he's taken a tremendous financial hit.

Take a deep breath, folks. If you want to get anyone hoisted on their own petard, it should be executives. AND CONGRESS!

This may be true, but you'd think that the executives would have sent out a directive "Hey, we're getting our asses bailed out on the taxpayer dollar, all half-million-dollar resort trips are like, on hold, or something".

[OrangePulp]

Sadly, it probably wouldn't make a spit of difference individually to these guys. They'll go across the street to another bank, hedge-fund, w/e, and make even more money in the process.

Hefty fines directed at the individuals involved would be more painful and appropriate.

Not if we fired them out of a cannon, into the sun.

[Bingley Joe]

Here's the C-Span video of this hearing.. no new details, but it's pretty stunning anyway:

1JRJVlg6X7s

Johan -- tell your brother to get to work and start smacking his bosses upside their heads!

[Ancalagon]

I think, if an exec/corporation is guilty of fraud, they should be fined double what they gained from it. So if they gained $1 million from fraud, they get fined £2 million. Its simple -the message is crime doesnt pay. get caught and you will make a healthy donation to the government.

This kinda stuff isnt fraud, but to be honest those bonuses should all be revoked in light of the economic crisis, and they need stricter laws against golden parachutes. I mean, even stricter than are supposed to be in the bail out package (are they still there after the bill was rejected the first time?)

[nixpayn]

this kind of news always makes me sick.

i think people need to really evaluate whats important.

if anyone thinks they can take it with them when they die, they're going to be in for a pretty shitty surprise.

[DiBiddilyBop]

I feel like executives that benefit from this sort of thing should go to jail for theft. Essentially, that's what it is. Now that they're receiving taxpayer money that was meant to help an ailing company, they are taking that money from the company (which we all now own 80% of) and using it for their own benefit. I really can't see the difference between what they're doing and what a pickpocket does except they're doing it publicly and with much more money.

[phoenyx]

I think, if an exec/corporation is guilty of fraud, they should be fined double what they gained from it. So if they gained $1 million from fraud, they get fined £2 million. Its simple -the message is crime doesnt pay. get caught and you will make a healthy donation to the government.


So.. is that current exchange rates, or for when the fraud occurred?

Sorry, couldn't resist. :)