Sunday, March 15, 2009

Robert Reich on the AIG Bonus Scandal

From The Huffington Post: Robert Reich, former U.S. Labor Secretary and current professor at the University of California at Berkeley, writes about how executives at AIG plan to pay themselves $100 million in bonuses while the company itself is failing and required a $170 billion government bail-out. One explanation by AIG for paying the bonuses: AIG needed to be able to retain talent in these challenging times.

Oh, yeah; you want to retain those big-thinkers at AIG.

Writes Reich, "Had AIG gone into chapter 11 bankruptcy or been liquidated, as it would have without government aid, no bonuses would ever be paid; indeed, AIG's executives would have long ago been on the street. And any mention of the word "talent" in the same sentence as "AIG" or "credit default swaps" would be laughable if it laughing weren't already so expensive." (emphasis supplied).

Or as David Waldman at the Daily Kos wrote in a clear manner, which even an AIG executive should be able to understand:

"You. Are. Failing.

There. Are. No. Bonuses. For. Failure."