Monday, August 17, 2009

Shouldn't The Taxpayers Have a Say Over How Much AIG Pays It's CEO?

The new CEO of AIG is going to be paid $7 million per year plus incentives. justifies this by saying: "At some point if we're not going to quickly break up AIG, we're going to have to pay someone to run it."

AIG should be liquidated, not enabled

This is a complete cop-out. AIG should have been thrown into chapter 7 liquidation, but it was not in order to accommodate the monetization of AIG's derivatives counter-parties, led by Goldman Sachs. THAT WE ARE AWARE OF, close to $100 billion dollars has been shuffled from the U.S. Treasury, THRU AIG, and into the coffers of the investment banks who stood to lose $10's of billions from an AIG bankruptcy.

So instead of saying "hey man, we need to pay someone really well with Taxpayer money to oversee the transfer of wealth from the Government to Goldman Sachs," we should be asking ourselves why AIG hasn't already been liquidated. AIG will ultimately cost the Taxpayers $100's of billions - but hey, at the new CEO is well-paid.

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