AIG traders richly rewarded as rivals pay slashed

[UpInArms]

Source: Reuters

NEW YORK (Reuters) - Employees at the center of American International Group Inc's (AIG.N) financial debacle got lavish million-dollar pay packages, including retention bonuses, even as rivals had to tighten their belts.

The rich compensation has ignited fury across America.

With millions out of work, many question why taxpayers should foot the $180 billion tab for AIG's bailout if the traders who made bad bets can take home $1 million checks.

AIG says the money was needed to keep employees in its financial products unit, to unwind complicated derivatives contracts. But Wall Street recruiters say the market for such talent is soft.

Derivatives traders are typically well rewarded, and AIG financial products traders were among the best paid in the business. But as the firm racked up $11 billion in paper losses in the fourth quarter of 2007, many must have worried that the big bucks would evaporate.

Instead, their bosses agreed to freeze compensation levels, ensuring they wouldn't earn any less, according to documents posted on the Web by the U.S. lawmakers at: here

Read more: http://www.reuters.com/article/ousiv/idUSTRE52J60C20090320?sp=true

---

see the embedded link for references to their pay packages - on the pdf document at http://www.house.gov/apps/list/press/financialsvcs_dem/employeeretentionplan.pdf - it appears that there is a $67.5 million per year limit

:sheesh:

[Lucky Luciano]

1. An AIG trader can make a ton of money for another firm next year is the problem.

I was initially ok with the competent performing people at AIG receiving bonuses, but I was ticked off when it came to light that it was the losers who were getting the bonuses. The trouble is that the losers can hold AIG hostage in the following way:

*The AIG traders of CDS know what AIG's massive positions are.
*If AIG fires them without compensation, then these people, losers as much as they are, still have incredibly valuable information for other traders - namely what AIG's positions are.
*AIG has to close those positions.
*If one of the AIG losers is fired, then another firm will scoop him up and find out what AIG's positions are and what trades AIG will be forced to make.
*Knowing that, for example, AIG had to buy $2B in GE CDS to close their positions in GE, the other firm can buy GE CDS in large size forcing GE's credit spreads wider and causing AIG to pay even more and profiting the ex-AIG loser's new firm rather handsomely (so the loser would also get paid at the new firm) and costing the taxpayers a good deal more than the bonuses.
*Therefore firing the employees before they wind down their positions is suboptimal...as is incentivizing them to quit by not paying their bonuses.
*I see a rock to my left and a hard place to my right.

[aquart]

3. You mean they would willingly destroy this nation for cash?

That makes them enemies of the state. Don't close Guantanamo just yet. IF THEY CAN DO THAT MUCH HARM TO THIS COUNTRY, DETAIN THEM TILL THEY CAN'T. We had no problem doing it for the last eight years, and those jerks didn't do nearly as much damage. How long can you hold a material witness in a massive fraud?

After all, they're concerned for their safety. Let's keep them safe.

[acmavm]

4. I say let corrupt AIG fall and let the flotsam and jetsam trickle down to the

ones that are still around. Then put a foot on their throats and make sure they understand that they will be monitored and new rules and regs will be passed to govern and control their operations. That's after the repeal of the Commodity Futures Modernization Act and the imprisoning of Phil Gramm (I can dream can't I?)

[pattmarty]

7. It kills me to SOMEWHAT agree with your post, that's why.....................

.............the government must strike while the iron is hot to re-regulate and fix this fucking huge mess NOW. It seems that there is not a lot that can be done now with companies that have been doing these practices in the past, but we MUST pass legislation so this crap cannot happen again. Seems like every 20-30 yrs we have yet another financial meltdown and it's always because the regulations and laws have been rescinded or "not enforced". My belief is that we have to keep this kind of shit in the limelight so the public keeps pressing their reps to pass legislation. I hate to say this, but I think this should be the priority to push thru both houses legislation with real teeth to regulate this industry. My belief why the whole country is fed up with all this greed shit is not just AIG (that was the "straw"), but ALL companies upper management that has been rewarded for failing for the past 30 (reagan) years. Every day you see companies losing money or going out of business with upper management getting huge paychecks and huge golden parachutes while the poor bastards that work 9-5 for a measly hourly wage end up taking it in the ass.

[OVERPAID01]

8. Obama is yet another politician

He is angry, because his advisers told him to be angry. Is anything getting done about it? NO. Did you know there are terms in the contract for the same bonuses NEXT year? I thought these aholes were supposed to be sold off, why would the contract plan for next year? I have lost faith in every feasible and unfeasible aspect of this nation. The Incorporated States of America are shamefully predictable.

[pattmarty]

10. That's the reason I just stated to keep these stories alive in the media.

[louis-t]

13. Now we know the real reason why "we have to keep our

talented people".

[Waiting For Everyman]

15. Seems to me... that would be insider trading, wouldn't it? n/t

[ConcernedCanuk]

2. The Corporate millionaires/billionaires are mostly sociopaths - they don't CARE

.
.
.

if all the people in the World hate them.

They just want your MONEY!!

Screw you is their motto;

only a very few of them ever get caught,

and even fewer go to jail.

So, - - screw you!

It works . . .

(sigh)

[Gin]

5. if the names got out.....the equation changes (IMO)

[pattmarty]

9. I don't know how to "link" so I'll direct you to Buzzflash and...........

.............a story that the CT AG released some of the "worst" offenders (living in Ct) names. Check it out. Normally I would not want the names released for a number of safety reasons, but in this case I am willing to make an exception just because of the damage and magnitude of their selfishness and greed. I believe that there are not a lot of other crimes that are worse than this one. And, I don't just mean bonus, I am talking exorbitant salaries for basically driving companies (not just the financial institutions) into the ground without caring or giving a shit about anybody or anything but themselves.

[UpInArms]

11. here's that link:

http://www.pubrecord.org/nationworld/782-connecticut-attorney-general-releases-partial-list-of-aig-bonus-recipients.html

AIG Financial Products Corporation (AIGFP), the unit that caused AIG's catastrophic meltdown last year, is based in Wilton, Conn. The division’s actions have largely been responsible for the mortgage and banking crisis and excessive compensation could have led to employees taking risky measures that caused further destabilization in the state of Connecticut, the lawmakers said.

The individuals subpoenaed Friday who received a portion of the $165 million are:

James Haas, Fairfield
Jonathan Liebergall, New Canaan
Douglas Polling, Fairfield
Christopher Phole, New Canaan
Steven Pike, Stamford
Robert Powell, Westport
Joseph Rooney, Fairfield
Gregory Ruffa, Darien
Leonid Shekhtnam, Redding
Christian Toft, Weston
Steven Wagar, Norwalk

According to a story published late Friday evening in the Stamford Advocate, other than Cenci and Haas, "each donated $2,100 to U.S. Sen. Christopher Dodd's presidential campaign in December 2006. Haas donated a total of $2,000 to previous Dodd campaigns."

go to the link for sublinks regarding these people's information

[provis99]

14. what a surprise

Looks like a who's-who list of "Aryans from Darien". Connecticut WASPs for the most part.

[ConcernedCanuk]

16. On how to link

.
.
.

When you go to post, there's a couple of links above the typing window.

One gives you the smilie look-up table, and the other is HTML lookup table.

HTML lookup table is the one you want for that(links).

You can do this while you are posting, it opens up a new window so will not affect your post.

Here's the link for ya anyhoo - -

http://www.democraticunderground.com/discuss/duboard.php?az=html_table

or

HTML lookup table

play around with it

ENJOY!

[pattmarty]

17. Thx.

[avaistheone1]

6. Yes, they are sociopaths. They don't give a damn who or what they

damage, or who they lie to, or what they lie about as long as they get the money.

And our Treasury, and our leadership in Washington is only too happy to give the folks at AIG a wink and let it happen.

[Gin]

12. this is getting interesting...scary but interesting......I have no pity on those

named in the article.....they have no pity on others...so in true.. full circle karma...no pity is saved for them.