AIG gets an additional $38 billion loan from the Fed.

@cbreeze (1209)
United States
October 9, 2008 10:28am CST
After already receiving $85 billion they needed another $38 billion. Yet they could afford to send 100 execs for a retreat for $440,000. The excuse is that this was not the executives that were responsible for the failure of the company but that it was a reward to the top performers. Still when does financial responsibility show up in this company. Top perfomers can get paid with top commissions. We usually get bonuses at my job every year. Because of the economic situation and the fact that the company is not performing as well we will not be getting those bonuses regardless of how well we perform individually. What's really going on?
2 people like this
8 responses
@Sarah1108 (310)
• United States
9 Oct 08
I dont understand why the Fed has to keep helping these companies. I think that things are out of control. I think the executives were to blame for how these companies fell apart. I think them going on a time to the "spa" shows how much they carried for their "little guy" employees that are now worried about paying their bills. I think a few months from now the Fed needs to look into how AIG spent the money if all of it goes to the big executives then it feels to be brought into court and people need to do some jail time.
2 people like this
@cbreeze (1209)
• United States
9 Oct 08
I agree. I really hope they do watch how the money is spent. Supposedly it was needed in order to be able to pay salaries, etc. Where does going on a group vacation fit in with that?
1 person likes this
@spalladino (17927)
• United States
9 Oct 08
I agree with you that this was outrageous! I'm in the same situation as you are with the company I work for. Our bonuses this year, if we get any at all, will be smaller to relect the economy's effect on our business. We still worked just as hard this past fiscal year but what responsible corporation gives unnecessary perks to employees after having to be bailed out by the government?
2 people like this
@cbreeze (1209)
• United States
9 Oct 08
Same here. Our bonuses will be very small or non existent. We are actually being required to work harder because they want the same or higher productivity with fewer workers. I often wonder what the top executives at my job are getting in bonuses. It is really a time for overhaul in the attitude of big business.
2 people like this
• United States
10 Oct 08
Bottom line...EVERYONE has to be held accountable for their actions. The CEO's have to held accountable for their company's operations. What I like to know is, who determines these outlandish salaries for top executives? Yeah, companies go under, the poor smuck (i.e. you and I on the floors below) suffer being put out of a job, possible lost pensions, yet the Executives lose nothing....EVEN if they have to do jail time. Same thing can apply to our elected officials.
1 person likes this
• United States
10 Oct 08
The board of directors decides the salary with the CEO candidate when they hire them. Just like when you go to a job interview you and your employer sit down and discuss what you will make and what your benefits are. There are not a lot of CEOs out there. So the candidates can pretty well ask for what they want. There are more companies in need of a CEO than there are CEO candidates. So either the board gives them what they want when they hire them or they go to another company that will give them what they want. The competition is pretty fierce. And unforunately some really shady and corrupt people have gotten jobs they probly should not have had because of it.
1 person likes this
@cbreeze (1209)
• United States
10 Oct 08
I understand the Board of Directors decides, but why wouldn't they want the compensation to be tied to performance. It just doesn't make sense.
1 person likes this
• United States
9 Oct 08
It is in all CEOs contracts that they get bonuses. Reguardless of how well the company is or is not doing. Stupid I know but that is how it works (it is good to be a CEO). So the companies have to use the money the government gives them to pay these bonuses if they do not have enough money in the bank to cover it. If the company does not pay out the bonuses than it is in breach of contract and the CEO can sue. So basically a CEO can drive a company into the ground and still collect his multi million dollar salary PLUS his multi million dollar bonus. Trust me, it ticks me off bad that we have to bail these companies out. But then to have that money going to the corrupt CEOs that caused these problems get makes me right down livid. You do not want to know the ugly words I have muddered over this.
1 person likes this
@cbreeze (1209)
• United States
9 Oct 08
These are the things the public is screaming to be changed. Especially when we end up paying those undeserved bonuses.
1 person likes this
• United States
9 Oct 08
That really messes with "Free Trade". Not to mention the government does not have right to tell you how much you will make for a job. Did the government tell you how much you could ask at your job or what kind of benefits package you were allowed to get? It sucks but we can not start having the government decided how much people get paid for their jobs. What we should have done was not bail them out in the first place. When ever they mess up now they are going exspect us to bail them out again. This will not be last time this happens. We just opened up a huge can of worms.
1 person likes this
@newtondak (3950)
• United States
9 Oct 08
A company that needs $120 billion dollars to bail them out can't possibly have "top performers" in their employment pool - and a company that is that far under should not be spending the money to reward anyone - expect perhaps the homeowners that they scammed.
@newtondak (3950)
• United States
9 Oct 08
I fail to understand why, when numerous of these banks are under investigation for fraud by the FBI, that we're giving them money. I thought that this whole bailout thing should have waiting until the investigation was completed.
1 person likes this
• United States
10 Oct 08
This whole thing makes me sick... the government is going to piss away 700 billion dollars and the economy will not get any better, They should take that money and disperse it to the taxpayers and let them pay bills, and the money will eventually turn the economy around. these execs are just going to call it free money, blow it away, and keep screwing the government, tweaking paperwork, and raping the middle class. 440,000 would pay two mortgages. If my mortgage was payed off, i would go on a spending spree and help the economy. I hate politics and I hate money and I hate the government for being so naive.
1 person likes this
@cbreeze (1209)
• United States
10 Oct 08
Your absolutely right. Depending on where you live, it would pay off more than two mortgages. And I would do the same thing if I didn't have to pay my mortgage.
1 person likes this
@xParanoiax (7005)
• United States
10 Oct 08
Forget bonuses, they treated their employees to the SPA after they were bailed out...and nevermind THAT they're planning to do it AGAIN now that they've been given more money. This is definitely "WTF" territory. What's really going on? Um...well, it seems like our government's decided to be generous to a bunch of jacka$$es that don't even take how serious of a problem their failure would be to the economy...seriously. This basically says, AIG doesn't give a crap that it's wasting taxpayer dollars. It doesn't give a crap that if it falls under it'll contribute to not only affecting OUR economy, but also the world's. AIG's top people are probably wealthy enough that they could walk away at any time -- screw all of us! *shakes my head* What's going on. *mutters* ^_^' Yeah, obviously, I'm most displeased about all this.
1 person likes this
@skysuccess (8882)
• Singapore
10 Oct 08
cbreeze, In the first place, I cannot believe that the bailout could be approved without removing some bad apples in the barrel. The people responsible is just so evident here and this government is just supporting more looting. I would not say much for what AIG did for their top executives here but any kindergarten drop out would have curtailed that retreat. It is just simply another failure and flaw of capitalism. Downright foul play. I tell you this is not going to stop, and unless your government start using the strong hand; I just do not see a positive outcome from this painstaking bailout.