AIG: Problem Child...cont.

It seems like AIG can't stay out of trouble. If soaking up taxpayers' dollars were not enough to outrage the country, they now want to give monetary bonuses to their executives. But what have the executives done that is worth a raise? Should driving particular segments of the company into a financial pit be rewarded? Constantly taking federal aid and dispensing it to other firms who also received federal assistance, is that worthy? Or how about losing an estimated $61.4 billion in the last quarter? None of these things sound like compliments towards upper level management, yet AIG has reported a $165 million payout. For us taxpayers, our foremost thought might be, "Is that where part of the $30 billion is going?" Recall that just last Monday, AIG received another federal bailout of $30 billion on top of the original $150 billion they already received. It appears that money just runs through AIG and nothing has been done about it.

President Obama is standing up to say that, "enough is enough." His view is that it's time to stop this madness, where AIG has been rewarded for irresponsibility. Our President is taking note that many companies in this nation have been working diligently to pull themselves out of their financial hole, without aid from the federal system. They have been overlooked in the past and no one stood up for them. Now the time has come where our Commander in Chief has seen the outcomes of bailing out a company who behaves recklessly, and he is not impressed. But is it too late? Are we speaking up about the situation at a time where the damage has already been done?

Look at the numbers; approximately $180 billion has already been invested into saving this firm. AIG has used that money in various negligent ways, and it's long gone. From the time that AIG received it's first "handout", other businesses in need of that assistance have gone under. The few that remain are struggling. "So what do we do?" Democratic Representative Barney Frank (Ma.) believes that it's time to start firing people. Let them get that bonus, but that will be the last paycheck from that company. A good point made, I will say; however, does unemployment solve the problem? I understand that most of these upper level management employees will have enough to sustain average living, but does the loss of jobs portray that we have taught AIG, the business unit as a whole, its lesson? A compromise of the situation is possible, where some executives (especially those who have been leading AIG in the wrong direction and consuming the federal assistance) should be let go, and the federal government should maintain a tight watch on AIG's action from here on out. Maybe if AIG felt the scrutiny of the people and realizes that it's heavy on our radar, the company might see that it's time to get its act together.

Sources:
1. Raum, Tom. "Obama: AIG can't justify 'outrage' of exec bonuses." Associated Press via Comcast.net. 16 March 2009. 17 March 2009 <http://www.comcast.net/articles/finance/20090315/AIG.Outrage/>.

2. Puzzanghera, Jim. "Why AIG is Still Getting Rescue Funds, According to LA Times." Insurance News Net. LA Times. 9 March 2009. 9 March 2009 <http://www.insurancenewsnet.com/article.asp?a=top_news&id=104037>.

3. Reuters. "US had no choice." Straits Times. 4 March 2009. 9 March 2009 <http://www.straitstimes.com/Breaking%2BNews/Money/Story/STIStory_345649.html>.

4. Scaliger, Charles. "AIG, Bailouts, and the Banks." New American. 9 March 2009. 9 March 2009 <http://www.thenewamerican.com/economy/commentary-mainmenu-43/866-aig-bailouts-and-the-banks>.