Frank Goes After AIG

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Monday, March 16, 2009 at 11:01 am

House Financial Services Committee Chairman Barney Frank (D-Mass.) is the latest lawmaker to weigh in on the astounding news that AIG — which remains alive only because of $170 billion in taxpayer help — has plans to pay $450 million in executive bonuses.

Interviewed on NBC’s “Today” show this morning, Frank points out what every American outside of Wall Street knows intuitively: That bonuses, by definition, should reward merit, and for that reason shouldn’t be going to the same folks who ran the insurance giant directly into the ground.

It does appear to me we’re rewarding incompetence. Forget about the legal matter here for a second. These bonuses are going to people who screwed this thing up enormously, who made terrible decisions.

The argument from AIG, of course, is that a failure to pay these bonuses would result in an exodus of company’s best talent. Yet Frank implied that such an exodus would be a welcome change.

We can’t keep them from getting the bonuses, but we can keep some of them from continuing in their jobs. And I am very skeptical that these retention bonuses — these people got retention bonuses — well, if they were in high school, they wouldn’t have gotten retention, they would have gotten detention. And the time has probably come now to look at it and get rid of some of them.

As Mary wrote yesterday: Let them walk. Who, after all, is waiting in line to hire the “talent” that ruined one of the world’s largest corporations?

Comments

6 Comments

Walker
Comment posted March 16, 2009 @ 8:50 am

Shut them down and put them in jail.


America First
Comment posted March 16, 2009 @ 8:52 am

Good for Barney Frank, bring out the posse!!! I can't believe the constant threats and extortion, and that's what it is from Wall St. like this statement: “The argument from AIG, of course, is that a failure to pay these bonuses would result in an exodus of company’s best talent,” what talent? What is this “1984?” The same folks in the Senate and Congress that have let all this stuff happen under their watch should also be given their “pink” slips or step up to the plate and walk on the good foot for the tax payers, the majority of our country. These Wall St. crooks and other rich elites are the U.S. version of old European nobility………remember Maria Antionette? They think they deserve bonuses because of all the tax payer money they scammed, after all money is money to crooks and they don't care where or how they get it as long as they get it. Then they've even sold out the tax payer by sending the money to their partners in Europe, no doubt the Rothchild banks at some turn. This really isn't what America is supposed to be about.


chris
Comment posted March 16, 2009 @ 11:38 am

Hey……..but as Hank “the Moron” Greenberg said ” you cannot let AIG fail………its a National Treasure” ! i guess it also goes for the loser execs….get a bonus……Pass….Fail….Alive and Breathing??


Walker
Comment posted March 16, 2009 @ 3:50 pm

Shut them down and put them in jail.


America First
Comment posted March 16, 2009 @ 3:52 pm

Good for Barney Frank, bring out the posse!!! I can't believe the constant threats and extortion, and that's what it is from Wall St. like this statement: “The argument from AIG, of course, is that a failure to pay these bonuses would result in an exodus of company’s best talent,” what talent? What is this “1984?” The same folks in the Senate and Congress that have let all this stuff happen under their watch should also be given their “pink” slips or step up to the plate and walk on the good foot for the tax payers, the majority of our country. These Wall St. crooks and other rich elites are the U.S. version of old European nobility………remember Maria Antionette? They think they deserve bonuses because of all the tax payer money they scammed, after all money is money to crooks and they don't care where or how they get it as long as they get it. Then they've even sold out the tax payer by sending the money to their partners in Europe, no doubt the Rothchild banks at some turn. This really isn't what America is supposed to be about.


chris
Comment posted March 16, 2009 @ 6:38 pm

Hey……..but as Hank “the Moron” Greenberg said ” you cannot let AIG fail………its a National Treasure” ! i guess it also goes for the loser execs….get a bonus……Pass….Fail….Alive and Breathing??


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