Recession Is Depression... But NOT For A.I.G
Kisha Walker
March 18, 2009
Apparently, America and "Itīs working class Americans" are doing something wrong; But the American International Group (AIG), has the answer to the recession depression blues that has millions of Americans losing their jobs, their homes, and for some, losing their minds. A California man, after losing his job, made a phone call and sent a fax to a local television station, identifying himself as Ervin Lupoe; stating that he was about to kill his family. Shortly after, Mr. Lupoe went to his home and killed his family.
As irony would have it, seventy-three employees were recipients of inflated bonuses from the insurance giant American International Group (A.I.G.). According to the New York attorney general Andrew M. Cuomo, A.I.G. has reported paying out $165 Million in bonuses to itīs executives in a letter the company sent to Representative Barney Frank the Chairman of the House Committee on Financial Services. Although the seventy-three names of the executives were not released, the dollar amount of individual bonuses were unsealed. Mr. Cuomo stated that the highest bonus paid out was $6.4 million, six other employees received more than $4 Million. Fifteen others received bonuses equaling more than $2 Million. 51 people received bonuses of $1 million to $2 million. Mr. Cuomo also says, there were eleven of those who received "retention" bonuses of $1 million or more,and are no longer working at A.I.G., including one who received $4.6 million. A.I.G. has refused to identify the current and former employees on privacy grounds, including one who received $6.4 million, Yet, the New York attorney general said he would subpoena A.I.G. for the names, job descriptions and performance evaluations of the employees receiving the bonuses.
White House officials said the Treasury has planned to recant the bonus money by writing new requirements into a $30 billion installment of government aid scheduled to go out to the insurance company. Keeping A.I.G. from failing, the government has already provided $170 billion in taxpayer assistance and now owns nearly 80 percent of the company. Representative Barney Frank, chairman of the Financial Services Committee, said that it was time for the government to exercise its rights as the owner of nearly 80 percent of A.I.G. Mr. Frank said he believed that the bonuses could be reversed on that authority alone, or by court action if necessary.
Mr. Barney Frank continued: "In other words, I think we are in a stronger case to try and get those bonuses back if we bring them as the owner of the company, rather than as the regulator interfering with a contract between two other parties." A.I.G. has insisted that it was obligated to pay the bonuses under employment contracts with executives in its financial products division. Representative Eric Cantor, of Virginia, the No. 2 House Republican said in a statement, "A last-minute provision in the stimulus bill inserted by Democrats protected bonuses like those received by A.I.G. executives. Taxpayers deserve better than this from their government."
In summation, the union between A.I.G. and the government, and the governmental predecessor, is not yet harmonious. We the tax payers, will continue to support these Multi billion dollar companies through this depressive recession. Until this marriage becomes balanced, the richer will continue to get richer,While the middle class and the poor become one.
Kisha Walker
As irony would have it, seventy-three employees were recipients of inflated bonuses from the insurance giant American International Group (A.I.G.). According to the New York attorney general Andrew M. Cuomo, A.I.G. has reported paying out $165 Million in bonuses to itīs executives in a letter the company sent to Representative Barney Frank the Chairman of the House Committee on Financial Services. Although the seventy-three names of the executives were not released, the dollar amount of individual bonuses were unsealed. Mr. Cuomo stated that the highest bonus paid out was $6.4 million, six other employees received more than $4 Million. Fifteen others received bonuses equaling more than $2 Million. 51 people received bonuses of $1 million to $2 million. Mr. Cuomo also says, there were eleven of those who received "retention" bonuses of $1 million or more,and are no longer working at A.I.G., including one who received $4.6 million. A.I.G. has refused to identify the current and former employees on privacy grounds, including one who received $6.4 million, Yet, the New York attorney general said he would subpoena A.I.G. for the names, job descriptions and performance evaluations of the employees receiving the bonuses.
White House officials said the Treasury has planned to recant the bonus money by writing new requirements into a $30 billion installment of government aid scheduled to go out to the insurance company. Keeping A.I.G. from failing, the government has already provided $170 billion in taxpayer assistance and now owns nearly 80 percent of the company. Representative Barney Frank, chairman of the Financial Services Committee, said that it was time for the government to exercise its rights as the owner of nearly 80 percent of A.I.G. Mr. Frank said he believed that the bonuses could be reversed on that authority alone, or by court action if necessary.
Mr. Barney Frank continued: "In other words, I think we are in a stronger case to try and get those bonuses back if we bring them as the owner of the company, rather than as the regulator interfering with a contract between two other parties." A.I.G. has insisted that it was obligated to pay the bonuses under employment contracts with executives in its financial products division. Representative Eric Cantor, of Virginia, the No. 2 House Republican said in a statement, "A last-minute provision in the stimulus bill inserted by Democrats protected bonuses like those received by A.I.G. executives. Taxpayers deserve better than this from their government."
In summation, the union between A.I.G. and the government, and the governmental predecessor, is not yet harmonious. We the tax payers, will continue to support these Multi billion dollar companies through this depressive recession. Until this marriage becomes balanced, the richer will continue to get richer,While the middle class and the poor become one.
Kisha Walker
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