Chaos at AIG

[Arrian]

The WSJ makes the same point Glenn Greenwald has been making: the administration was aware of the bonuses (it appears the Treasury folks are the ones who made sure to strip out the anti-bonus language from the bailout bill) and only after it blew up in the media was it viewed as a problem. Everybody postured, fanned the populist flames, etc. Nobody really took responsibility, or bothered to explain what really happened.

So you have both leftwing and rightwing voices pointing out the bull****. Nate Silver has been arguing against the clawback tax bill for some time. I'm not comfortable with it either.

Now, I'm not sure I totally buy the argument that the AIG bonuses were benificial. I understand the idea behind it: you want to wind down AIGFP and you therefore offer this money to the folks who will do it, instead of letting them walk. The thing is, these guys engineered a massive cluster****. I don't believe the "oh, they had marketable skills" argument... maybe I'm wrong, but I'd think they might have some trouble finding a job elsewhere right about now.

-Arrian

[Naked Gents Rut]

The following is a letter sent on Tuesday by Jake DeSantis, an executive vice president of the American International Group’s financial products unit, to Edward M. Liddy, the chief executive of A.I.G.

DEAR Mr. Liddy,

It is with deep regret that I submit my notice of resignation from A.I.G. Financial Products. I hope you take the time to read this entire letter. Before describing the details of my decision, I want to offer some context:

I am proud of everything I have done for the commodity and equity divisions of A.I.G.-F.P. I was in no way involved in — or responsible for — the credit default swap transactions that have hamstrung A.I.G. Nor were more than a handful of the 400 current employees of A.I.G.-F.P. Most of those responsible have left the company and have conspicuously escaped the public outrage.

After 12 months of hard work dismantling the company — during which A.I.G. reassured us many times we would be rewarded in March 2009 — we in the financial products unit have been betrayed by A.I.G. and are being unfairly persecuted by elected officials. In response to this, I will now leave the company and donate my entire post-tax retention payment to those suffering from the global economic downturn. My intent is to keep none of the money myself.

I take this action after 11 years of dedicated, honorable service to A.I.G. I can no longer effectively perform my duties in this dysfunctional environment, nor am I being paid to do so. Like you, I was asked to work for an annual salary of $1, and I agreed out of a sense of duty to the company and to the public officials who have come to its aid. Having now been let down by both, I can no longer justify spending 10, 12, 14 hours a day away from my family for the benefit of those who have let me down.

http://www.nytimes.com/2009/03/25/opinion/25desantis.html

[Arrian]

The guy who should be the target of the outrage is Cassano.

edit: Apparently, they are after him now.

-Arrian

[SpencerH]

Now, I'm not sure I totally buy the argument that the AIG bonuses were benificial. I understand the idea behind it: you want to wind down AIGFP and you therefore offer this money to the folks who will do it, instead of letting them walk. The thing is, these guys engineered a massive cluster****. I don't believe the "oh, they had marketable skills" argument... maybe I'm wrong, but I'd think they might have some trouble finding a job elsewhere right about now.

-Arrian

I think this is the pertinent point in that regard.

As AIG chief Ed Liddy explained on the Hill last week, the people receiving retention bonuses were not the same people who launched AIG's unhedged housing bets that brought the company down. Those people were gone. Their pay is already being clawed back.

Whether it's true, or how true, is unknown by me since the media is (as usual) competing with our government for the title of biggest arseholes.

[Imran Siddiqui]

Saw that earlier today, NGR... a great op-ed piece showing that a lot of these people who recieved the "bonuses" had nothing to do witht the CDS section of AIG and were being paid $1 a year for 10 hour days and the bonuses were what they had to look forward to for the hard work they had put in in trying to fix the mess of others in the financial section.

Another important quote from that email:

But you also are aware that most of the employees of your financial products unit had nothing to do with the large losses. And I am disappointed and frustrated over your lack of support for us. I and many others in the unit feel betrayed that you failed to stand up for us in the face of untrue and unfair accusations from certain members of Congress last Wednesday and from the press over our retention payments, and that you didn’t defend us against the baseless and reckless comments made by the attorneys general of New York and Connecticut.

My guess is that in October, when you learned of these retention contracts, you realized that the employees of the financial products unit needed some incentive to stay and that the contracts, being both ethical and useful, should be left to stand. That’s probably why A.I.G. management assured us on three occasions during that month that the company would “live up to its commitment” to honor the contract guarantees.

Mr. Liddy, I wish you success in your commitment to return the money extended by the American government, and luck with the continued unwinding of the company’s diverse businesses — especially those remaining credit default swaps. I’ll continue over the short term to help make sure no balls are dropped, but after what’s happened this past week I can’t remain much longer — there is too much bad blood. I’m not sure how you will greet my resignation, but at least Attorney General Blumenthal should be relieved that I’ll leave under my own power and will not need to be “shoved out the door.”

Jake DeSantis
Faux populism

[chequita guevara]

Aw, pity the poor capitalists.

[Arrian]

I think this is the pertinent point in that regard.

And if we accept that resignation letter at face value, it backs up the idea that the people who made the mess were already gone.

-Arrian

[Imran Siddiqui]

Aw, pity the poor capitalists.

Heaven forbid that people we need to help us out of a mess that they didn't start want to be treated fairly .

I'd rather give this man his bonus and have him stay on, fixing this mess, working 10-14 hours a day in a thankless job than pay you your unemployment benefits.

[The Mad Monk]

John Galt has spoken.

[The Mad Monk]

Threats to AIG: "We Will Get Your Children"

Documents reveal the level of threats against AIG employees

By ANDREW PERGAM

Updated 5:58 AM EDT, Thu, Mar 26, 2009

The anger in the threats against AIG executives is palpable.

"Get the bonus, we will get your children," someone identified only as "Jacob the Killer" hauntingly writes in an e-mail.

His is one of dozens of threats against AIG and its employees that were obtained from Connecticut Attorney General Richard Blumenthal's office under a Freedom of Information Act request by NBC Connecticut.



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Read more details on the bonus plan from internal AIG documents here.



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Surprisingly, some of those making the threats left their e-mail addresses and phone numbers - making the job of law enforcement officers easier.

Here are some of the highlights (or rather, low-lights). We've cleaned up some of the nasty language, but you can use your imagination:

-- All you motherf***ers should be shot. Thanks for f***ing up our economy then taking our money.

-- Dear Sir: Ya'll should have the balls and come clean and give back the bonuses. I know you would never do this so the gov't ought to take you out back and shoot everyone of you crooked sonofb****es...I would be very careful when I went out side. This is just a warning. If I were ya'll I would be real afraid. Thanks, Bill.

-- I don't hope that bad things happen to the recipients of those bonuses. I really hope that bad things happen to the children and grandchildren of them! Whatever hurts them the most!!

-- You f***ing suck. Paying bonuses to the d*****s that made bad bets losing your company billions of dollars. I want to f***ing puke. Publish the list of those yankee scumbags so some good old southern boys can take care of them.

-- If the bonuses don't stop, it will be very likely that every CEO @ AIG has a bulls-eye on their backs.

-- We will hunt you down. Every last penny. We will hunt your children and we will hunt your conscience. We will do whatever we can to get those people getting the bonuses. Give back the money or kill yourselves.

-- All the executives and their families should be executed with piano wire around their necks --- my greatest hope.

-- You mother-f***ing, c***s***ing, d***l****ers need to be taken out one by one and shot in the head. There's a special place in hell for you pond scum. Watch your backs because someone will come to get you, you can be sure.

-- The Revolution is coming. The family members of your executives are not safe. Your blood will run through the streets in the coming months.

Among the documents is an e-mail from an unknown individual, who may be or may have been an employee: "Just arrived home to several threats on the answering machine. 'Give your money back or else,' terrible things going to happen, etc. Both private caller numbers."

The company presumably provided the threats to support their claim that testifying before a legislative committee Thursday would put their employees at physical risk.

AIG CEO Edward Liddy expressed fear during congressional hearings in Washtington D.C. last week that releasing the names of the executives who scored bonuses would put them at risk of violence from an enraged public.

So far, the only response from citizens angered by the bonus fiasco has come in the form of a small and peaceful protest Saturday in Connecticut at some of the lavish homes of AIG employees. Some executives in Connecticut have hired security firms to guard their homes, the Associated Press reported.

An agreement was reached Wednesday to have Stephen Blake, AIG's head of human resources, testify about the structure of the bonus awards.

http://www.nbcconnecticut.com/news/local/AIG-Threats-We-will-get-your-children.html

This is just disgusting.

[Arrian]

Wow, they got a bunch of crank emails.

Yes, TMM, it's disgusting. It's disgusting hot air. There's plenty of it going around.

-Arrian

[chequita guevara]

You know, these people are responsible for people dying in the 3rd world. My gives a **** is broken when it comes to them. I do, however, wish that those making these stupid threats could find a more productive use for their righteous fury.

[snoopy369]

Che, have you read any of this thread? According to basically every source, the far majority of the people involved WERE NOT RESPONSIBLE FOR THE AIG CLUSTER****. Those people are LONG GONE. These folks are just trying to clean it up so that LESS people die (or, whatnot).

[chequita guevara]

The fact that they aren't responsible for CDSes does not mean they bear no responsibility for other actions of their company.

[Jon Miller]

The threats show the reason why the people with real power and wealth are doing something. They are planning to pay off the poor/etc some (their goal is to do the minimum possible to keep people from doing violent unrest). The people who are in favor of not helping the poor, are the middle class/upper middle class (which is probably those up to assets of a few million). These people are exactly the ones who would get hurt from violent unrest, the really powerful/wealthy would have guards or leave the country.

JM