Oy Veh, Not Another One!

Bloomberg.com reported on December 16th that AIG, the failing insurance company, once the largest in the world, somehow managed to give out bonuses, euphemistically named "retention pay," to over 7,000 employees. Some of these bonuses ran into the millions, $4 million, to be exact. They were based upon annual salary and in many cases, equaled annual salary.

Edward Liddy, CEO of AIG, which is now 80% owned by the American taxpayers, was unapologetic, although hopefully, he will be hauled before a Congressional hearing to explain his actions.

Because, frankly, where are these AIG employees going anyway? Anyone in the financial services industry who has a job will likely not be moving anywhere voluntarily.

U.S. finance companies cut 220,506 jobs this year through November, placement firm Challenger Grey & Christmas Inc. said in a Dec. 3 report.

Entitlement rears its head again.

Assistant Treasury Secretary Neel Kashkari, who supervises the U.S. financial rescue program, has called some of AIG’s bonuses “excessive for a failing institution.” Neel embarrassed himself last week when he couldn't answer many questions before Congress about just where the $350 billion has gone so far.

Sounds like what happened to the reconstruction money in Iraq. Ah, self regulation!

This might be the understatement of the week, in a week when Bernard Madoff has felled so many rich people, charitable foundations, and banking institutions.

According to talkingpointsmemo.com, in 2005, a submission was filed with the SEC by Harry Markopolos, a money manager and investment investigator, explaining how Madoff's hedge fund couldn't possibly be making that kind of money. Click here to read the actual document.