How to Stop AIG Bonuses
By William K. Black, Thomas Ferguson, Robert Johnson, and Walker Todd, Huffington Post
Firstly, the US trustees in charge of the firm must immediately instruct the corporate treasurer to make no payments of any bonuses. They also need to order him to issue stop payment orders on any checks that fly out the door at the last minute, as with Merrill Lynch. Then the trustees need to split off the derivatives unit from the rest of the firm and separately incorporate it. This step leaves AIG's other businesses free to operate as usual. If the recipients of the bonuses refuse to waive them, then the derivatives unit should at once be thrown into bankruptcy, terminating all obligations to pay them.
The National Outrage
Nobody can imagine $160 billions to AIG. [I thought they made washing machines, but that company is AEG.] We became mesmerized.
Somehow, we grasped the $165 millions they planned to pay their woeful executives. It was as if they had knocked us down on the beach, and now were kicking sand in our faces.
So, we got angry.
Now, they are President Obama's bailouts and bonuses. If he fails to clean up the financial sector, the crisis will become Obama's Depression.
f we don't allow banks and governments to fail, there is little incentive to have them succeed.
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