I guess one can’t avoid the AIG Bonus contraversy. It’s getting pretty complicated, and the universe doesn’t need anymore posts filled with venom about the fat cats getting paid fortunes for destroying the world economy. So I’ll just say "ditto." Here are some resources available that clarify [and/or complexify] the issue as of today:
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Joseph Cassano: Joseph Cassano came to AIG in 1987 and started the Financial Products division, a London based group that sold the Credit Default Swaps that are in the eye of the storm. This article in the New York Times from September 27, 2008 describes what he did and he got rich doing it – Behind Insurer’s Crisis, Blind Eye to a Web of Risk.
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Our Mission at AIG: Repairs, and Repayment: Edward Liddy is the CEO of AIG, hired in September 2008 when everything hit the fan. He’s testifying in Congress today. This article is an Op-Ed in today’s Washington Post that starts with:The government rescue of American International Group (AIG) and other financial firms has produced a palpable wave of anger on the part of Americans and a rising public demand for accountability from corporate and government leaders. The anger is understandable, and I share it.And ends with:We are pressing forward with our plan to return money to taxpayers, protect policyholders, and give employees a vision of success and a path for achieving it. With the understanding and patience of the American people and the continued support of the Federal Reserve and the Treasury, we can resolve AIG’s challenges and help its businesses contribute to a global economic recovery.
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Cassano’s Golden Parachute and the Retention Bonuses: emptywheel‘s take on the recent AIG Bonuses. In this post, she parses the AIG contract in her usual closely read fashion.
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Josh Marshall at TPM summarizes the history and clarifies some of the issues involved in these bonuses.
As for myself, I feel kind of calm about this whole thing. For eight years, as outrage after outrage has passed before us, we’ve known almost nothing about what has really gone on. We wanted transparency. Well, here it is. In some ways, it’s almost too much to take in. But the Press and Congress are all over it. Whatever happens, it has to be good because it’s on the table. For once, I don’t feel obligated to spend hours looking for hints about the back story. It’s on the front page! [where it should have been years ago, back when we might have helped us avoid ruin and destruction].
Were I Joseph Cassano, I might hire me a whole Law Firm.
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