AIG to Dole Out $165 million in Bonuses

never seen a rally like aig's over the past week. Amazing. I know a guys with 200k shares. He's loving life right now, although not back to his cost basis around $2 yet.

 

It opened at 50 cents on Monday. Here's my take:

AIG disclosed it's payments to counterparties which demonstrated just how global it's reach is. The original $2.7 Trillion owed due to the FP division taking on unhedged risk has been wound down to $1.6 Trillion and it appears that a total dumping of that tremendous risk is actually feasible (unless the morons in congress feel it's more important to appease taxpayers by punishing AIG for trying to do the job). The bailout is actually going to be an easy thing to pay back once the Credit Default Swap exposure goes away. Aside from the relatively tiny Financial Products Division (about 100 out of 100,000 employees), AIG's core insurance business is doing quite well.

On the issue of the bonuses, does it occur to anyone that of the $165,000,000, the government got about $50 Mil in taxes? Also, every FP exec earning over $250K got their 2009 salary cut to $1.00 which means that another $20 Million or so won't be paid?

 

I agree with everything you are saying. I just wonder if this is what is driving it or if the shorts just started covering creating a mini rally.

 

I wish I was sohisticated enough to be able to answer that.

 

I can't believe those idiots think that they can legally do that. They are like a bunch of children scheming to get back at Butch the bully.
The act is retroactive to 1/1/09. The Retention contracts were executed in early 2008 and the bonuses were largely earned in 2008. Do these morons seek any expert consultation at all?

I am never voting for an incumbent again...EVER!

 

It gets better. Most, if not all of these bonus recipients are British citizens working out of the London office and are, thus, exempt from US tax laws.

 

I'm really surprised at you Sabanfan!:dis:
You won't find more arrogant *******s other than Barney Frank or Chris Dodd.
They got away with bringing down Freddie Mac and Fannie Mae.
The Democrats are in total control and believe they have the power to do whatever they want legal or not.

 

I've never been more embarrassed to be an American. And I really mean that.

 

There is nothing even remotely constitutional about this move. Hard to believe our lawmakers are this blatantly ignorant about our own laws. I guess their ignorance is only surpassed by their survival instinct.