Search This Blog

Tuesday, March 17

It's not in the MSM yet:

AIG Offices patrolled by Armed Guards

But it is the Macedonian International News Agency:
A tidal wave of public outrage over bonus payments swamped American International Group yesterday. Hired guards stood watch outside the suburban Connecticut offices of AIG Financial Products, the division whose exotic derivatives brought the insurance giant to the brink of collapse last year. Inside, death threats and angry letters flooded e-mail inboxes. Irate callers lit up the phone lines. Senior managers submitted their resignations. Some employees didn't show up at all.

"It's a mob effect," one senior executive said. "It's putting people's lives in danger."

Politicians and the public spent yesterday demanding that AIG rescind payouts that they said rewarded recklessness and greed at a company being bailed out with $170 billion in taxpayer funds. But company officials contend that the uproar is scaring away the very employees who understand AIG Financial Products' complex trades and who are trying to dismantle the division before it further endangers the world's economy.

"It's going to blow up," said a senior Financial Products manager, who spoke on condition of anonymity because he was not authorized to speak for the company. "I have a horrible, horrible, horrible feeling that this is going to end badly."

More at the link. And thanks to the folks at Signs-of-The-Times with their "Grand Theft Economics" section.

(UPDATE): "Obama pulled in $150,000 from AIG"
The Australian article begins: "BARACK Obama and New York senator Charles Schumer, leading the charge to recoup $US165million ($250million) in bonuses paid to employees of AIG, received nearly $US150,000 in campaign donations from the bailed-out US insurance giant.

"As the White House attempted to contain a furore that threatens to damage the President's standing, New York newspaper Newsday reported that AIG donated $US101,332 to the US President last year, second only to Chris Dodd, chairman of the Senate banking committee, who received $US103,100.

"Senator Schumer, who proposed legislation yesterday that would claw the bonuses back through a special tax of almost 100per cent on the payments, has received $US38,500 from AIG since 2000."

(UPDATE II): The Grift that keeps on Grooving: Goldman Offers Loans to Stretched Employees

No comments: