Ah, the boys and girls at AIG are at it again. From Bloomberg News;
Jan. 27 (Bloomberg) -- American International Group Inc., the insurer saved from collapse by government money after losses on credit-default swaps, offered about $450 million in retention pay to employees of the unit that sold the derivatives, according to two people familiar with the situation.
About 400 workers at the financial products unitmay get the money in two installments, said the people, who declined to be named because details of the payments were confidential. The business was responsible for about $34 billion in writedowns since 2007 as the market value of swaps AIG sold to banks plunged amid the subprime mortgage market collapse.
Hmmm, $450 million for four hundred people in THE FINANCIAL PRODUCTS GROUP!!
- This is the group that ripped a gaping hole in the entire financial system by writing credit default protection on basically anything that anyone asked them to using the sophisticated "anus" model. After all it was free money right? Almost? No??
- We, the taxpayers, have already met all their $ billions of collateral call obligations on these default swaps, bailing the geniuses on the other side of AIG's trades.
- When these trades kept moving against AIG (us) late last year we effectively tore the swaps up and spent $52 billion to buy the assets from the counterparties and end the trades. The good news here is now that we own all these great residential mortgage credit assets, the Fed has announced that they will attempt to modify the loans in the securities to stem foreclosures. So we have that going for us.
So it seems to me that we have pretty much done all the work that the window-lickers (thank you Captain Zach. I will always be indebted to you for giving me that term!) in the AIG Financial Products group would need to be retained to do right?
“I was extremely disappointed -- but not surprised -- to learn that AIG will be awarding bonuses to the very division that drove the company into the ground,” said Representative Elijah Cummings, a member of the House Committee on Oversight and Government Reform, in an e-mail. AIG shouldn’t be awarding “millions of unmerited dollars to employees while at the same time begging the U.S. government for financial life support.”
I'm a little disappointed too Congressman. However, while I can do nothing, can't anyone in the government that owns these sorry-ass SOBs put the hammer down? How about accelerating the repayment terms on the loan that we made to AIG by say....$4.5 billion. No one else seems to be paying attention to the rule of law in this country so why the hell should we?
AIG is worried about retaining employees in the Financial Products Group? How rediculous (that's how the young people say ridiculous) is that? The Street is laying off all kinds of financial products people every day! It's like a scene from "On the Waterfront" here in the New York Metro Area! I'll be more than happy to report to work at AIG tomorrow and send out bid lists! I can probably get a few of my friends too!
Barney Frank, an angry nation turns its lonely eyes to you. Do something about this....please.