AIG Shelling Out $3 Million To Employees Who Were Terminated.

Yep, it just keeps getting better, doesn’t it?

American International Group, the insurer getting a $152 billion federal bailout, in a regulatory filing late on Tuesday disclosed it would pay roughly $3 million to several executives under deferred compensation plans that are being terminated. IG last week said the monies being paid under the deferred compensation were previously earned, and had no connection to the federal bailout.

AIG’s bailout package was originally $85 billion, but ballooned to $152 billion when it became clear the lower amount would not be enough.

So not only are they getting paid $3 million dollars after being terminated, but it’s because of deferred compensation – money they “made” back when they were driving the company towards collapse. These people just do not get it, so why is Congress allowing them to continue to spend our money? Every day this bailout gets worse and worse. Next up, the auto industry – who should not get a dime. They are the ones who have refused over the years to update their business model and make more fuel efficient cars, which allowed the Japanese and German manufacturers to outsell them by millions. If we give them bailout money it will only prolong the inevitable, as they have been shown to be unable to adapt and change. Once they burn through that money running the same old operation, they will just come back again for more like these banks are.

But then again, we give subsidies to everyone from the airlines to the oil companies to the owners of coal plants, so at this point what’s the difference…

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Comments (8)

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  1. Greg says:

    I’m unsubscribing to your blog. I like reading your ideas about personal finance. But I’m getting tired of your rants about the federal bailout. Yes, I’m aware that we’re wasting huge amounts of money on this. I read the news. That’s not what I read your blog for. Please try to stay more on topic, or you will likely drive more subscribers away.

  2. david says:

    Thanks for letting me know. Best of luck to you.

  3. Alex says:

    First of all, I completely agree with you, a bailout for the automotive industry is not only moronic, but pointless. It’s a failing industry, and the demise is just a part of the cycle of the market.

    @ Greg – I’m as opposed to rants as anyone else, but personal finance and the bailout(s) are inherently related. Currently, it’s kind of impossible to separate the two.

  4. david says:

    Thanks for the comment Alex. These two things are so tied, you couldn’t get any closer. It’s our financial future they are using to pay these people. It is incredibly important.

  5. david says:

    Oh, and can I add that the 3 auto execs flew on private jets to DC today to ask for bailout money? Ridiculous.

  6. tj says:

    Man it was such a bad idea giving them that much money that quickly.

  7. Couldn’t have said it better myself, David. The mere notion that those auto execs, who’ve been stubbornly running their respective companies into the ground for decades, have the audacity to come running to the government (taxpayers) who are already BEYOND struggling, seeking yet another gigantic bailout, is pure insanity.

  8. fitwallet says:

    Meanwhile, the disabled folks I work with on a daily basis, living with chronic illness, have to wait two years to get a housing subsidy–and that’s if they qualify (must have an AIDS diagnosis). Yeah, they just have to hope they live long enough to receive a housing subsidy so that 30% of their $637 SSI check can go to rent. Two years is a long time to live in a homeless shelter, or mom’s moldy basement, with a suppressed immune system. But they shouldn’t have gone and gotten HIV, right? How dare they do something “irresponsible” and expect the rest of us to bail them out! Oh, wait…