Under the word “chutzpah” in the dictionary, it should say “also see AIG.”
“American International Group plans Wednesday to pay another round of employee bonuses, worth about $100 million, said several people familiar with the matter, a year after similar payments at the bailed-out insurance giant infuriated many Americans and inflamed Washington.”
Yes, Washington was “inflamed.” And they did what? Bluster, as usual.
“This week’s retention payments go to those employees at the company’s Financial Products division who agreed recently to accept 10 to 20 percent less money than AIG had initially promised them two years ago.”
How very generous of them. Especially taking into account that the Financial Products division is the “unit which traded in the derivatives that imploded in September 2008, leading to the biggest government bailout in history.” That would be the implosion that left the taxpayers on the hook for over $180 billion. These are the people AIG needs to retain? They don’t need to be re-tained, in fact some of them should be de-tained. Like in the crossbar hotel.
“The agreement calls for employees who still work for the financial products unit to accept 10 percent cutbacks, while employees who have left the company must take 20 percent cuts…But some people have not agreed to the cutbacks and are insisting on the entire amounts. People with knowledge of the negotiations said that a vast majority of those still employed at A.I.G. had accepted the cuts, but only about a third of the former employees had done so.”
“Andrew Goodstadt, a New York lawyer who represents more than a dozen current and former Financial Products employees, said he hoped the deal would be a step toward normalcy. “My clients are looking forward to getting paid their contractual entitlements,” he said, “and resolving this matter once and for all.”
Yes Mr. Goodstadt, your honorable clients who just want AIG to make good on its agreement with them. How about what they agreed to do after the last round of obscene bonuses hit the fan:
“At the height of the controversy last spring, employees at the firm signaled they would return a total of $45 million by the end of 2009. A government audit in the fall showed that only about $19 million was returned.”
So by my calculations counselor, your clients still owe us $26 million. Cash only please, no checks.