AIG

In an attempt to keep people from jumping ship, AIG is planning on paying out deferred compensation programs to some 5600 upper-level employees early. While I'm sure that's all fine and great for those receiving the payouts, is this really the time to start tossing money around? They've already been bagged for being ballsy enough to take trips to fancy spas, essentially flipping off the government and taxpayers after their huge bailout.

I'm wondering who is ultimately going to foot the bill so the bigwigs don't bail. Haven't the taxpayers been responsible for enough of AIG's mistakes? Now is just not the time. Not to mention the lack of bonuses most of us will be receiving... How do others feel about this?

So AIG execs are not getting their bonuses.

Makes sense to me, I wonder if this will set a precedent for the IBs.

Cuomo could send the same letters to the remaining wall street firms that received assistance from the govt.

I wonder how this will play out.

http://dealbook.blogs.nytimes.com/2008/10/22/aig-to-suspend-millions-in-...

So last week we jumped all over this story and gave AIG shit for getting ~$20k worth of manicures and pedicures with taxpayer dollars - but lets be fair here, "it [only] rewarded independent insurance agents who were top performers for the company."

That being said, what is more disturbing to me right now is the fact that they will no longer be using their MSG suite. A year-long contract for a "Club Suite" ranges from $225,000 to $500,000. Although AIG is stuck with paying for the suite, Tulupman said it will no longer be used by the company."

So just to save face you won't use the suite even though the $s are already out the door? So what are you going to do with it? How about instead of letting it run empty you give it away to laid off Lehman bankers...or better yet, any diehard Rangers/Knicks fans that held onto their season tickets even though their home is in foreclosure.

I guess bailouts can be quite stressful, because a mere days after the government stepped in with $85 billion to save AIG from completely going under, the insurance company spent some $440K to send its executives on a fancy retreat in California. The mini vacation included golf, banquets and over $23K in spa treatments. No problem, the taxpayers will pick up the bill. Really, you just relax and enjoy yourselves….

When’s the last time someone sent me on a luxury retreat? Oh, that’s right. Never. This is just shameful.

http://www.youtube.com/watch?v=9VvGW98D3XA

A fairly interesting Q&A on current events. The commentors are banking/finance professors at the University of Chicago GSB.

http://freakonomics.blogs.nytimes.com/2008/09/18/diamond-and-kashyap-on-...

The body isn't even cold yet and there is already a line forming to pick apart what's left of AIG's corpse, once the Fed's $85 billion dollar bailout goes through. Bidders from Munich Re to Warren Buffet are waiting in the wings to get their hands on whatever assets are left once the smoke clears. Should be interesting to see who ends up with what.