ARGH: The AIG Fiasco Gets Worse
James Gattuso /
As more details emerge as to bonuses paid by bail-out insurance giant AIG, the nation’s outrage is growing. According to figures released by New York Attorney General Andrew Cuomo, no less than 73 employees received bonuses of $1 million or more. Seven received more than $4 million. One employee received more than $6.4 million.
To be fair, little is known about the circumstances of each case – we don’t know the names of the recipients, never mind the unique value of each. Many are no doubt engaged in unwinding AIG’s obligations, saving the firm – and taxpayers – money. We just don’t know.
Nonetheless, the general picture hardly fits a firm in financial distress, supported only by massive infusions of taxpayer money. Taxpayers are right to be upset.
Outrage of course, is the easy part. The hard part is figuring out what to do about it, especially since many of the payments were apparently required by contract. Bad ideas abound. Several members of Congress, for instance, today suggested retroactive taxes of 91 percent or more targeted to AIG employees receiving bonuses.