AIG was too big to fail, so the government bailed them out. Now, according to the Wall Street Journal Online, President Obama has asked Secretary Timothy Geithner to "pursue every legal avenue" to block $165 million in bonuses to AIG executives who were in part responsible for the company's near collapse. Well, hold on a minute here. There are a lot of unanswered questions in that request...
1. Were these contractual bonuses paid to salesmen (similar to commissions)?
2. Were these bonuses promised to executives when they were hired?
3. Were there any restrictions placed on the 'bailout' money?
4. Are restrictions being added after the fact?
5. What business is it of the government what anyone is paid or not paid?
6. Does this administration have any respect at all for Contract Law?
If being outraged that people got bonuses makes you feel good, be my guest, but if these bonuses were part of contracts agreed on before the problems started, there is no way that they should be overturned. Are we reaching a place where people want the government to tell us how much we can earn and how much our neighbor can earn? I hope not!
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