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AIG gone crazy — It’s the economy stupid

November 14, 2008

Can some one remind me why we can’t let AIG fail?  Letting them fail is a sure way to stop the bleeding.  These people are just mind boggling.  Some one has got to be fired.  It’s time we start asking our selves who’s friend of a friend in the government is forcing AIG down our throats?

American International Group plans to pay out $503 million in deferred compensation to some of its top employees, saying it must tap the funds to keep valuable workers from exiting the troubled insurance giant.

News of the payments to top AIG talent comes as the federal government has just put more money into saving the company from bankruptcy, beefing up the total public commitment to $152 billion. Meanwhile, members of Congress are questioning the company’s expenditures — including lavish business trips to resorts — during a time when taxpayers are on the hook for the bailout.

AIG’s troubles stem from bad bets it made guaranteeing and buying risky mortgage investments. On Monday, the U.S. government announced that it would have to expand its rescue of the company to nearly double the $85 billion loan it first provided in September when AIG was unable to pay billions of dollars in claims.

Some one needs to save us from our own politicians.  This is disgusting.  While we had to pony up Billions of dollars from our generation and our children’s and their children’s generation to save these corporations that clearly does not have our welfare in mind, Bush and his hapless administration do nothing but help perpetuate this sh#t.

Enough said.

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2 comments

  1. I am writing to you today regarding your coverage of AIG’s deferred compensation program.

    First, this is NOT a special bonus program. Deferred compensation is pay that an individual has earned, but elected to defer until a later day, as allowed under tax rules. InvestorWords.com defines deferred compensation as “an arrangement in which a portion of an employee’s income is paid out at a date after which that income is actually earned.” In other words, like a 401(k) this is the employees’ earned money that has been set aside for a later date.

    Under AIG’s deferred pay plans, which are consistent with tax rules, an employee can only access deferred pay when they retire or leave the company. AIG is concerned that employees may leave in order to obtain their deferred pay, which is a concern at this critical time when AIG is working to maintain the value of its businesses – whether they are sold to repay the loan from the Federal Reserve Bank, or continue as part of a restructured AIG.

    AIG has made a decision to terminate its deferred pay plans to remove any incentive for employees to leave in order to obtain their deferred pay. AIG’s deferred compensation programs involve 6,200 employees (or more than 10 percent of the company’s U.S. workforce), many of whom are sales and commissioned agents — not executives — who defer some of their earnings for a later date, like retirement. The assts funding a vast majority of these accounts have been set aside separate accounts (trusts or other custodial accounts), so the money readily accessible to the employees, when they need it. These individuals have businesses that are in many cases portable and could leave AIG at any times to get their deferred pay. AIG has chosen to distribute those funds in the first quarter of 2009, as consistent with tax rules.

    Again, I would like to stress that deferred pay has been earned by employees over many years and these employees could obtain it today by leaving, which would hinder AIG’s ability to continue as a business and repay taxpayers.


  2. ABU DHABI, United Arab Emirates, Nov. 17 (UPI) — The so-called Friends of Pakistan social and economic development group Monday lobbied Arab states for oil on a deferred payment schedule. Pakistan was hit especially hard by the



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