Over the weekend, the news broke that bailed-out insurance company AIG was becoming the latest in a parade of financial-services firms to enrich its failed executives on the taxpayers’ dime.
The New York Times reports that AIG, recipient of more than $180 billion in bailout money, plans to give $165 million in bonuses to the very executives whose reckless behavior brought the company to ruin — and nearly took the entire global economy with it:
The payments to A.I.G.’s financial products unit are in addition to $121 million in previously scheduled bonuses for the company’s senior executives and 6,400 employees across the sprawling corporation. [Treasury Secretary] Geithner last week pressured A.I.G. to cut the $9.6 million going to the top 50 executives in half and tie the rest to performance…
Of all the financial institutions that have been propped up by taxpayer dollars, none has received more money than A.I.G. and none has infuriated lawmakers more with practices that policy makers have called reckless.
The bonuses will be paid to executives at A.I.G.’s financial products division, the unit that wrote trillions of dollars’ worth of credit-default swaps that protected investors from defaults on bonds backed in many cases by subprime mortgages.
The bonus plan covers 400 employees, and the bonuses range from as little as $1,000 to as much as $6.5 million. Seven executives at the financial products unit were entitled to receive more than $3 million in bonuses.
President Obama calls AIG’s behavior an “outrage”. But this is not the first outrage the nation has suffered at the hands of the very executives who happily used public funds to save their companies from the consequences of their “leadership”. (Read through our archives, you’ll find plenty of others.)
But What Can I Do About It?
Lots of folks are angry this morning. But anger, by itself, doesn’t change anything. It’s when we channel anger into action that it can make a difference.
So, if you’re angry, here’s something you can do about it: join the March 19 Day of Action Against Corporate Excess.
This Thursday, thousands of people will be rallying together in cities across the country to demand that bailed-out corporations be held to account, and that government make the real changes we need to have an economy that works for everyone, not just the top 1% — including passing the Employee Free Choice Act.
A complete list of cities and events can be found on the Day of Action’s Web site, TakeBackTheEconomy.org. Don’t see your city on there yet? Sign up to organize your own Take Back the Economy rally — all the materials you need are available through the site.
This week, don’t just be angry — join the movement for a sustainable economy that works for everyone and help get this country back on the right track again.
Comments (2)
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AIG = Allowing Irreversible Greed.
AIG = All in Greed.
AIG = Arn't I Greedy.
AIG = A$#holes, in general.
This is sick. Why in the world are we helping these companies that keep sending millions to people who do not know how to run a company? They cry yet get paid millions on the "average joes" taxes. Furthermore, I fear this is just the tip of the iceberg. Look what Enterprise rent-a-car did to get bailout funds:
http://www.butasforme.com/2009/02/25/alert-enterprise-rent-a-car-may-have-fired-employees-as-fake-evidence-when-lobbing-for-bailout-money/
Not to make excuses for these people, but the bailouts are making crooks out of everyone that touches the money.
Posted by Mad as Hell on March 16, 2009 at 7:03 PM
Posted on March 16, 2009 at 7:03 PM
I am a part of an expanding company and will be attending this rally tomorrow (3/19/09). I have emailed friends and family, in hopes that they will continue to forward the message and have a huge turnout at all locations in PA, as well as other states.
The money should not have went to AIG. Obama has just proved that he is helping out the rich and the poor or middle class are nothing. Obama is helping out the wrong class; the wrong people. Help out recent college students; social workers, teachers, the self employed who have absolutely no work and cannot receive unemployment; help out the homeless for goodness sake!!!
Obama made a HUGE mistake. And it will be heard tomorrow, 3/19/09.
Posted by Seriously?! on March 18, 2009 at 11:12 AM
Posted on March 18, 2009 at 11:12 AM