Day by day the outrage grows over the Federal Government's bailout of AIG and their subsequent payments of retention and performance bonuses to their so-called "top" executives. The latest reporting indicates that at least 73 of their executives have received bonuses of $1 million or more dollars.
This is over and above recent retention bonuses paid out to help prevent their top people from "jumping ship". I am still trying to figure out who these ships might be and where these ships are anchored. Just which mega investment banking firms would jump at the chance to get these AIG Exec's?
It is reported that AIG has to pay these bonuses under a contract that was previously negotiated and that they have no way of breaking the contract. The Justice and Treasury Department as well as many politicians are looking at how pressure can be brought to bear on AIG.
One suggestion that has been thrown out is for Congress to pass emergency legislation implementing a new tax on these bonuses that might virtually nullify and benefit of these bonuses to the AIG recipients.
So could one deduce that bonuses are a new found "vice" for taxation? As such, a "Vengeance Tax!" Tea Parties seem to be popping up all over the place now!
IMO, a huge lessoned learned is that deregulation of the banking and financial services industry is proving to be catastrophic and has exacerbated our financial crisis many times over. The government now holds an 80% stake in AIG. No banking and financial services industry institution should ever be allowed to grow to hold a market share of such a magnitude that its failure could put our financial system at great risk!!!!!!!!!!! I believe the fed's should act to break up AIG....Now! Dole it out part and parcel to multiple financial entities.
Hmmm.....I wonder how many AIG executives could manage themselves on Unemployment Compensation.