AIG comments about my earlier post — then Elijah Cummings calls Neil Kashkari a “chump”

Before I get into Elijah Cummings response to AIG and their $503 million bonus package for their employees (earlier post), I must first address a comment AIG left me on that post.  I also noticed that, even though I am not an English professor, you would think such a big company would have access to a spell checker and proof reader for grammar, I’m just saying.  You can only imagine my surprise to receive a comment from AIG concerning my obscure post.  There response is untouched and I will be making my response in bold text [block quote turned off]:

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.

That is all nice and well but at what point do you think I care?  If this was the real reason for the bonuses then why the pathetic excuse of giving bonuses to keep employees from leaving the company?

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.

Considering the current state of employment, who are you kidding with this analogy?  They will quit your company and go where?  The fact that jobs are tight not in a state or two but all over America.  I repeat, where the hell are they going?  But I must not let you think that I care, because I do not.  Suck it up and take the lost.  But, on the bright side, as many people that are out there that need a job you can replace that person tomorrow.

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.

I find your timing questionable at best for releasing funds while your company is in such dire need for capital.  Nevertheless, in case I have not communicated this clearly, at what point did you really think I care?  Just like your grammar and misspelled words there is something askew about your reaching out to me.  Did you think I would find any reason to believe that you were justified?

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.

This point was not lost on me the first time you stated it.  Now let me repeat myself.  Let them go and hire someone new.  There are over a million people looking for jobs and would probably be happy to work for a little less.  Only some one that is technically rich could, in today’s time, walk away from any job.  Thus I must ask who the hell do you think you are fooling?  Needless to say Congressman Elijah feels the same way I do.  Check out the video if you don’t believe me.

Vodpod videos no longer available.

more about “Elijah Cummings calls Neil Kashkari a…“, posted with vodpod

AIG gone crazy — It’s the economy stupid

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.

Brian Ross reports new AIG junket

I know I posted about AIG and their new fun trip at our expense yesterday, but nothing says it like a video.

Vodpod videos no longer available.

more about “Brian Ross reports new AIG junket“, posted with vodpod

later on last night AIG’s CEO Edward Liddy had the absolute gall and nerve to justify the trip.

Unfortunately, for AIG, Congressman Elijah Cummings is not buying this BS and wants Libby to resign immediately.

Cummings has emerged as a prominent critic of AIG, which received a revised, $152 billion federal bailout package this week. The Maryland congressman was responding to a report by an Arizona television station that AIG executives participated in a recent training session for financial planners at a Phoenix resort.

Can anyone say we are not getting played by AIG?

Enough Said.

Forgot about this with AIG

In my outrage over AIG getting more money I complete overlooked that, once again, they went on another “Executive Event” to the tune of $350,000.  This is outrageous.  We are bailing them out to pay for their over bloated Events.  We can’t let them collapse because of what exactly?  Talk about getting played.  Are we now AIG’s biggest suckers?  I really believe CHANGE needs to find it ways to AIG.  We’ve given them the money again, and again, and again.  They could at least respect us and not use it to pay for executive events that include spa treatments.  See the video about the trip here.

Enough said (well probably not).

A.I.G. again?

Is any one concerned that we are giving another $40 billion to AIG to keep them from once again collapsing?  It’s starting to feel like we are getting played by AIG.  Yet, on the other hand we are having hard core discussions about bailing out the auto industries?  Something seems wrong with this picture.  On the one hand I agree we need to make the auto industry commit to making cars that are more green before giving them a substantial sum of money.  But the standard, if any, we have set for AIG seems very weak.  This is the third bailout we have given them.  When does AIG have to meet a set of standards that is aggressive enough that this kind of repeat bailout does not keep taking place?

The enhanced bailout plan — nearly double the original $85 billion loan extended to the company in September — comes with restrictions on how much AIG corporate executives get paid. The top 5 executives at the company are now subject to salary and bonus limits that are the most stringent the Treasury has yet struck in any financial bailout plan. The next 70 highest corporate officials are subject to the same limits on severance packages as other executives of companies participating in the $750 billion Troubled Asset Relief Program. AIG’s overall bonus pool is frozen at 2006-2007 levels.

AIG chairman and chief executive Edward M. Liddy said the new plan “addresses the liquidity issues that threatened AIG,” and that the company’s “goal is to repay taxpayers in full with interest.”

I’m glad that CEO Liddy plans to pay the American people back, but when do they stop bleeding cash and looking for more hand outs?  The fact that AIG have frozen bonus levels would be a plus if it was not related to 2006-2007 levels which are still bonus levels that supersede what the average person makes in a year.

Read the full story here.

Enough said.