Tuesday, March 17, 2009


I have come up with the perfect not so serious solution for how the AIG bonuses should be handled. We are all aware that there is an enormous sense of outrage that we have once again been snookered by the fast talking financial wizards. Those who led us down the path of destruction continue to reap outrageous rewards for their actions.

President Obama is now weighing in. He has committed to "pursu(ing) every single legal avenue to block these bonuses" of $165 million to various, yet unnamed AIG executives. For the sake of truth in advertising, it should be noted that this money was apparently already distributed last Friday.

Andrew Cuomo, the attorney general for the State of New York, has been as aggressive as he can be in trying to dissuade the recipients of these monies from retaining these benefits. As early as last October, he demanded that AIG recover bonuses and other payments from its executives. He has even discussed the possibility of there being actionable fraud if these bonuses were negotiated at a time it was known that the company did not have the wherewithal to pay these sums.

Coincidentally, in this morning's Letters to the Editor of the New York Times, there is a comment regarding "Prosecuting Fraud: The Senate is Taking Action". Edward E. Kaufman, Senator from Delaware writes that " the Judiciary Committee recently reported out the Fruad Enforcment and Recovery Act of 2009, bipartisan legislation... provid(ing) the resources needed for the Justice Department, the FBI and others to uncover and prosecute financial fraud in the banking and mortgage industries, including $165 million a year for hiring fraud prosecutors and investigators".

Don't tell me that it is just a coincidence. $165 million out to AIG executives, and $165 million needed to prosecute financial fraud. Talk about instant karma.

The answer, to appease the outraged, is for the AIG executives to turn back their bonuses, thus giving the government the funds required to go after the financial bad guys. In one glorious moment, these executives get out from under the microscope, walk away from any possible investigation of financial wrongdoing, and 'fund' a project to prosecute those who have truly wronged us. From devil to angel. What could be better.

We can then turn our attention to more pressing questions like how did companies such as Goldman Sachs receive both billions in bail out money from the government and also billions more from AIG from the billions the government gave to them. I am afraid that not all pieces of the puzzle fit so well.


Anonymous said...

I was thinking they should give the cash back and accept an equivalent payment in stock valued at the highest price traded in 2008 and then let them figure out how to recover their value


Robert said...

they will only give the cash back under threat of nuclear holocaust- I don't think this is a group willing to divest itself of $165 million