AIG Outrage

Santelli on AIG bonus rage: "You know, $165 million is like worrying about 16.5 cents, while $165 maybe necessitates a little more outrage"

We're not worry about the $165 million, Rick. This is a matter of simple principle: it's morally repugnant to reward failure. And it's outrageous to do so at the public's expense. The fact that AIG is contractually obligated to pay the bonuses even in the event of NATIONALIZATION (and yes, selling 80% of your company to the Fed constitutes nationalization whether you call it that or not) goes to show just how totally fucked was the system that allowed them to leverage their assets 34 to 1.

If I were CEO of AIG, I wouldn't pay the bonuses despite my obligation to do so. The aggrieved employees would have to sue to get their money. And the media orgy that would arise from that situation (bankrupt insurance executives demanding their golden parachutes while unemployment hits double digits) would pretty much prevent any real action.