Connecticut AG: AIG paid $218 million in bonuses, more than the $165 million previously disclosed

[ProSense]

AIG Gives Connecticut’s Blumenthal Data on Bonuses (Update1)

By Karen Freifeld

March 21 (Bloomberg) -- American International Group Inc., whose compensation policies before and after its U.S. bailout are being investigated, turned over information on its executive bonuses to Connecticut’s attorney general.

AIG paid $218 million in bonuses, Connecticut Attorney General Richard Blumenthal told the Associated Press. The amount paid is more than the $165 million in bonuses previously disclosed by the New York-based insurer, the AP said.

The insurer provided a list of bonus amounts and contract terms to Blumenthal, who said the information supports his view that the basis for paying the bonuses is “completely unjustified,” according to a statement he issued yesterday.

“These contracts rip the rug from under AIG’s excuses -- revealing no basis under Connecticut law for these mega taxpayer-funded bonuses,” Blumenthal said. “AIG’s own documents reveal that it turned an emergency bailout into a meritless handout, paying windfalls to employees as reward for financial failure.”

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[ProSense]

1. Washington Post joins the "pity the bankers" theme

Saturday, March 21, 2009

Washington Post joins the "pity the bankers" theme

Oh please. Let's get a few points straight before I see yet another "poor bankers" story. The bankers are hardly talking with a hostile Washington. Their friends are all over Congress, the White House and Treasury. For goodness sakes, Obama's team is flooded with former Citi people and Geithner has consistently eased up on every attempt to push back on Wall Street. Congress has dithered for months and then acts surprised when the country discovers they looked the other way. Even now, they're doing nothing, so don't tell me that Washington is unfriendly territory for Wall Street.

And as far as the bankers providing value and "it's only a few that are ruining it for everyone" I call BS. The pay throughout these companies at all levels has consistently been above other industries. There has been no link between high pay and high performance. It's been no risk (for bankers) and high pay. Performance has had little to do with pay and no, there has not been any great value to the public. The public has only been on the downside of this scheme.

For the belly-aching bankers they have plenty of choices. They can live with the real world or quit. Quit their Wall Street jobs. Quit the industry. Quit whatever and go find work elsewhere and see how well it pays compared to being a fuckup on Wall Street. Quit insisting on the critical value-add delivered because it's called bailout, future inflation and a global recession. This pity party for bankers throughout the media is infuriating to read and remains unconvincing. Obviously the banks are now spending their bailout money on PR campaigns which is salt on the wound. If only the "liberal media" didn't play along with the game.

After a week of unexpected setbacks for an industry accustomed to deference, bank executives said they were now racing to convince Congress and the Obama administration that imposing punitive taxes on bonuses would unfairly punish thousands of people for the sins of a few. Executives also argued that hitting banks would hurt the broader economy.

"We are working in every appropriate way with policymakers in Washington, and with other financial institutions and industry associations, to come to agreement on a constructive industry compensation system that is good for the company, the financial system and the country," Citigroup chief executive Vikram Pandit said in a memo sent to employees.

Define "appropriate" because I'm not seeing it.

[Igel]

2. Bloomberg did a horrible job quoting Blumenthal.

Or, rather, I hope that Bloomberg did a horrible job quoting Blumenthal.

They made him sound quite incoherent. Strictly in the Halliday and Hasan sense of the term, of course. (For which, this will do: http://home.eserver.org/danzico/Discourse/hallidaysummary.html )