Great piece. I 100% agree with the author, many of these executives are being wrongfully vilified by the press, congress, and the NY AG. What does Cuomo hope to accomplish by releasing the names of those who did not give their bonus back? At what point will he stop?

When one of these executives or one of their family members is assaulted or even worse, killed, will Cuomo then realize what he is doing is wrong? I just find it disgusting...

 

"I never received any pay resulting from the credit default swaps that are now losing so much money... None of us should be cheated of our payments any more than a plumber should be cheated after he has fixed the pipes but a careless electrician causes a fire that burns down the house."

I think the author is wrong here. Unless AIG-FP compensation is extraordinarily separated by desk, he likely did receive a larger bonus because of all the paper profits the CDS group was creating. Just like bankers bonuses' were large in 06-07 because of the outsized profits the MBS trading and origination businesses booked, they also came down as those divisions profits evaporated.

When you go to work for a large company, you're putting your stake with the whole thing, not just your small group. Maybe he "fixed the pipes" adequately, but the electrician from his company burnt down the house, so his work is worthless, and he won't be compensated.

 

So what happens if AIG doesn't take gvt. money? Granted, we're all F'ed 100 times worse, but he still wouldn't get his bonus, contract or not. AIG takes money, and now he should get paid 100% of what he was supposed to be making?!? He's lucky he was still getting salary. Totally false on all accounts, he's a little baby. Either way, he's looking for a new job.

 
EagleSpread:
He's lucky he was still getting salary. Totally false on all accounts, he's a little baby.

UMMMM sir... you are a complete dumbass, with no reading comprehension skills. while most people in this economic time would be happy to "still be making his/her salary" and working 12-14 hour days, it still sucks when u are making $1 from 12 months. I suggest you reread the article there genius.

 
Best Response
EagleSpread:
So what happens if AIG doesn't take gvt. money? Granted, we're all F'ed 100 times worse, but he still wouldn't get his bonus, contract or not. AIG takes money, and now he should get paid 100% of what he was supposed to be making?!? He's lucky he was still getting salary. Totally false on all accounts, he's a little baby. Either way, he's looking for a new job.

The argument that if they didn't receive bailout money, there would be no AIG, no job, and no bonus is complete bullshit.

I had this same conversation with a non-banker friend. This is what I told him. Say I borrow 100K from you for my business. Tough times hit, and I come back to you saying "Hey, I really need 50K to get me through this rough spot. My business is going to go bankrupt if you don't give it to me, I'm gonna lose my house, my car, my savings, and my business. Help me out, I'm really in a jam." To which he responds, "Sorry, I just can't give you any more. I'm in a tough spot myself, can't afford to fork out another 50K."

So at the 11th hour, a family member gives me the 50K I need to keep my head above water. Economy is better again, I pay back the 50K to my cousin who saved my ass when along comes the first friend who lent me 100K to ask for his money back as well. What I have to say is "Well... I mean I was going to go bankrupt had my cousin Mike not come along and saved my ass, so you would have lost your 100K anyway. So I'm not paying you back."

Also... the person saying that out-sized M&A/Banking bonuses were supported by the MBS business is a fucking idiot. M&A/Banking groups were FLUSH with deal flow as a result of EXTREMELY loose credit markets, and the bonuses those departments received reflected that.

 
Marcus_Halberstram:
So at the 11th hour, a family member gives me the 50K I need to keep my head above water. Economy is better again, I pay back the 50K to my cousin who saved my ass when along comes the first friend who lent me 100K to ask for his money back as well. What I have to say is "Well... I mean I was going to go bankrupt had my cousin Mike not come along and saved my ass, so you would have lost your 100K anyway. So I'm not paying you back."
That's one of the best analogies I've read. Props to you.
 

That was very recent that they accepted to work for $1. I agree that's not fun, but if he's senior enough to be asked to work for $1, then he was obviously making millions in the past. To say that he didn't benefit at all from anything related to CDS is just ridiculous. P.s. learn how to type before you throw stuff out there like that as each sentence you have written has at least 1 error in it.

 
EagleSpread:
That was very recent that they accepted to work for $1. I agree that's not fun, but if he's senior enough to be asked to work for $1, then he was obviously making millions in the past. To say that he didn't benefit at all from anything related to CDS is just ridiculous. P.s. learn how to type before you throw stuff out there like that as each sentence you have written has at least 1 error in it.

No dumbass, that was 12 months ago that he agreed to do such a thing. READ THE FUCKING LETTER!!!... also for someone who is criticizing my writing, please take a look at at the masterpiece above.

P.S= Marcus_Halberstram may hate me because of my name, but he is by far one of the best posters on this site.

 

Just read this article. Nice.

Here's a novel idea shared by a friend: The US government is in the RED. So no elected official deserves their salary. All elected officials should work for $1, in service to their country.

Abolish fringe benefits, bonuses, pensions. Change provisions so that all elected officials receive the same welfare checks WE will receive when we're 65. Let's audit their attendance and activity on regular sessions. Abolish their free medical/dental etc. and have them participate in the same HMOs/PPOs that we do.

Let's see how FURIOUS our elected officials will lash out at THAT idea!!

I mean, they basically don't deserve anything, right? Shouldn't they participate in the same manner that they're imposing every other executive to participate?

We're spending a lot of money to fix this mess up. The cost will be borne by many generations to come. Why should our elected officials be treated any differently?

Seriously.

 
aadpepsi:
Just read this article. Nice.

Here's a novel idea shared by a friend: The US government is in the RED. So no elected official deserves their salary. All elected officials should work for $1, in service to their country.

Abolish fringe benefits, bonuses, pensions. Change provisions so that all elected officials receive the same welfare checks WE will receive when we're 65. Let's audit their attendance and activity on regular sessions. Abolish their free medical/dental etc. and have them participate in the same HMOs/PPOs that we do.

Let's see how FURIOUS our elected officials will lash out at THAT idea!!

I mean, they basically don't deserve anything, right? Shouldn't they participate in the same manner that they're imposing every other executive to participate?

We're spending a lot of money to fix this mess up. The cost will be borne by many generations to come. Why should our elected officials be treated any differently?

Seriously.

Awesome! Best thing I read in a long time!

 
aadpepsi:
Just read this article. Nice.

Here's a novel idea shared by a friend: The US government is in the RED. So no elected official deserves their salary. All elected officials should work for $1, in service to their country.

Abolish fringe benefits, bonuses, pensions. Change provisions so that all elected officials receive the same welfare checks WE will receive when we're 65. Let's audit their attendance and activity on regular sessions. Abolish their free medical/dental etc. and have them participate in the same HMOs/PPOs that we do.

Let's see how FURIOUS our elected officials will lash out at THAT idea!!

I mean, they basically don't deserve anything, right? Shouldn't they participate in the same manner that they're imposing every other executive to participate?

We're spending a lot of money to fix this mess up. The cost will be borne by many generations to come. Why should our elected officials be treated any differently?

Seriously.

This is hillarious. AIG didn't go into red serving public's best interest. I don't know where you get the idea that government should strive for profit. I hope you thrive in some anarchist country where there is no infrastructure.

 
abst:
This is hillarious. AIG didn't go into red serving public's best interest.

And the government did?

The government dropped the ball BIGTIME. AIG can do whatever the fuck they want with their money. They can drop wads of 100 bills in a blender with a banana and a scoop of ice cream, make milk shakes, drink it in one gulp, and walk around with the white residue gracing their upper-lip.

When they go bankrupt as a result, its their fucking problem.

Unless.... unless, AIG is such a significant institution that the fall of AIG will irrevocably harm the US economy. If the well-being of the country relies so heavily on the survival of a few select institutions (AIG, Citi), then it is the US Government's responsibility to ensure these institutions are not susceptible to the inherent risk and uncertainty associates with the economy and the financial markets.

This is capitalism. Companies thrive, and companies fail. Thats the way things happen. AIG did what all companies eventually will do, make a fatal mistake and meet their doom. It is the US Government that was unable to either: - make itself immune to a mammoth financial institution kicking the bucket - or ensure the mammoth financial institution wouldn't be in a position where they were anywhere close to be in a bucket being quickly approached by a large boot

Bottom line: Uncle Sam, you fucked up. But its ok, we're used to it.

 
EagleSpread:
You can't just say sorry, I'm not paying you back because you wouldn't give me more loans, the original creditors still have claims to assets. They have debt covenants for stuff like that.

You're missing the point.

But yeah, ok. Then the point still stands, because you have employment contracts just like you have debt covenants.

 

I guess I agree he should still be getting paid if he's working, but I just hate how he (and everyone) says "Oh, I had nothing to do with CDS and I had a record year, I should have a record bonus!". Well, great, but if it weren't for CDS, there wouldn't be nearly the volitility of the past ~2 years, spreads wouldn't have blown out wider than my ex-gf and he would be making 2002-4 money, not 2006. If my company goes bankrupt, I don't get paid, and I understand that, but it's a risk I'm willing to take.

 

Two more execs left AIG's French office. But under the funky French law, they have to be replaced prompto, otherwise the French will appoint one of their trustees, which in turn would trigger defaults in the company's derivative contracts.


Just my 2c.

__________ Just my 2c.
 
lorican:
Two more execs left AIG's French office. But under the funky French law, they have to be replaced prompto, otherwise the French will appoint one of their trustees, which in turn would trigger defaults in the company's derivative contracts.

Just my 2c.

lol. Ah the french, always keeping things light.

 

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