Jon Stewart should Cramer these people

Individual Pay
James F Orr III
Director
 
Robert Michael Sandler
OfficerConsultant
$4.64M
Fred Langhammer
Other
 
Steven J Bensinger
Officer
 
Frank G Zarb
Director
 
Andrew J Kaslow
Officer
 
Edwards E Matthews
Beneficial Owner (10% Or More)
 
Ellen V Futter
Director
 
David L Herzog
Officer
 
Robert B Willumstad
Director
 
Monika M Machon
Officer
 
Maurice R. &Amp; Corinne P. Greenberg Joint Tenancy Co
Beneficial Owner (10% Or More)
 
Jacob A Frenkel
Officer
 
Martin J Sullivan
Officer
 
Michael H Sutton
Director
 
Stephen L Hammerman
Director
 
Nicholas C Walsh
Officer
 
Maurice R Greenberg
Beneficial Owner (10% Or More)
 
C V Starr &Amp; Co Inc
Beneficial Owner (10% Or More)
 
Morris Offit
Director
 
Paula Rosput Reynolds
Officer
 
Marshall A Cohen
Director
 
Robert Edward Lewis
Officer
 
Kristian P Moor
Officer
 
Virginia M Rometty
Director
 
Richard C Holbrooke
Director
 
Frank G Wisner
Officer
 
William N Dooley
Officer
 
Dennis D. Dammerman  
Edmund S. W. Tse
Chairman of American International Assurance Company Ltd and Chief Exec. Officer of American International Assurance Company Ltd
$7.66M
Edward M. Liddy
Chairman and Chief Exec. Officer
N/A
George L Miles Jr
Director
 
James F. Orr III  
Jay S Wintrob
Exec. VP of Retirement Services
$5.32M
Martin S Feldstein
Director
 
Robert M. Sandler
Consultant
$4.64M
Stephen F. Bollenbach
Director
 
Suzanne Nora Johnson  
Virginia M. Rometty  
>Win J Neuger CFA
Chairman of AIG Investments and Chief Exec. of AIG Investments
$4.64M

In the New York Times under the headline “A.I.G. Planning Huge Bonuses After $170 Billion Bailout,” Edmund L. Andrews and Peter Baker reported that the huge financial group to which US taxpayers contributed an enormous amount of money will pay bonuses amounting to about $165 million to executives. There is something seriously amiss here.

Jon Stewart should Cramer* these AIG leaders, and the folks in the US government who are allowing this to happen. The names of the AIG leadership and people who have been making insider trades of AIG stock (with links to Yahoo Finanace pages about them) are listed in the accompanying table. I understand that many of these individuals and others at AIG have foregone some bonuses, but they still ought to have to sit down and explain themselves.

The American International Group, which has received more than $170 billion in taxpayer bailout money from the Treasury and Federal Reserve, plans to pay about $165 million in bonuses by Sunday to executives in the same business unit that brought the company to the brink of collapse last year.

Word of the bonuses last week stirred such deep consternation inside the Obama administration that Treasury Secretary Timothy F. Geithner told the firm they were unacceptable and demanded they be renegotiated, a senior administration official said. But the bonuses will go forward because lawyers said the firm was contractually obligated to pay them.

Mr. Andrews and Mr. Baker predict that the payments will “almost certainly will fuel a popular backlash against the government’s efforts to prop up Wall Street.” I’m betting my boots that there will be a well-deserved popular backlash. It won’t only be aimed at the government’s efforts. These executives—let’s start with the folks listed to the right here—who appear to be playing us for chumps will likely feel that backlash, too. (Follow the links to comments from any of the articles listed at the end of this post!)

Sure, some of these bonuses are small and, sure, the percentage of the total bailout is small and, sure, some executives will only get $1 in salary for the rest of the year and, sure, there are contracts for those people in the financial games arm of AIG and, sure, sure, sure, but to we financial mortals, it’s real money. How about a requirement that anyone who makes more than, say, $1 million, in bonuses must spend 100% of the difference between that bonus and $1 million in building and maintaining free housing for citizens living below the poverty line in the US. Not only that, but the individual must live in that housing and perform housekeeping services for the other residents.

Link to Mr. Andrews’ and Mr. Baker’s article. See also “Bailout King AIG Still to Pay Millions In Bonuses” by David Cho and Brady Dennis of the Washington Post. more from the Wall Street Journal. Here’s Big Money’s take.

Remember to read the comments.

*I’m referring, of course, to Jon Stewart’s interview with Jim Cramer: Pt1, Pt2, and Pt3.

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2 Comments

Filed under Equity, News, Politics, Thanks for reading

2 responses to “Jon Stewart should Cramer these people

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