Wednesday, March 25, 2009

Another Take on the AIG Bonuses

This a resignation letter from an exec in the Financial Products division of AIG, published in the NYT.  Its interesting, in it shows how most of AIGs employees are getting punished for what really just a few caused.  AIGs downfall was caused by its default swaps activity, and nothing more.  Most of their other divisions have actually continued to perform quite successfully, but because of those few bad apples in that one bad sector of the business, the whole ship is sinking.  So employees who worked their a$$es off, and made their divisions quite profitable,  have now become the targets of public outrage over their promised bonuses, are likely going to lose everything they were promised, and simply because their employer is AIG, who also owns that credit default swap division.  Thats gotta suck

I dont know what the answer to this is, but it points out that our knee-jerk reactions dont always quite hit the mark.

http://www.nytimes.com/2009/03/25/opinion/25desantis.html?_r=1

-Ryan

1 comments:

cyregray said...

I can't believe people are taking this seriously, I won't even blog about it. We get literally bombarded by this AIG nonsense - In Print, and TV Media - for over a week - as if this is more then the tip of the iceberg, and then this letter just happens to appear, and just happens to get published in the NYT.

Is it just me or is this too perfect? Now people will be debating AIG bonus, government taxation, etc - all the while the real culprits of this financial debacle get off without the slightest scrutiny.

So lame.