There has been so much strife in the news about the economic situation and one of the biggest riots lately has been of Citibank, but now the tables are turning towards AIG.
President Obama was trying to keep the top executives from getting these million dollar bonuses because he knows that the economy cannot afford it. It has recently been released that about 73 high-end executives were paid out over $1 million in bonuses a piece and that 11 of those individuals don’t even work for the company anymore.
AIG is under heavy scrutiny due to the fact that the company received a portion of the bailout money that was intended to help the company overall and its employees, not the people who are already at the top.
The news have been showing clips of angry people who feel betrayed by AIG, and blogs that have been written to express the anger of many clients of the company.
"Millions of Americans are losing their jobs -- millions. And to some degree they're losing their jobs because of actions taken by some of these firms," Sens. Max Baucus said. "At the same time, they're giving themselves bonuses. I mean, give me a break. What are these people thinking? That's part of the problem. They're not thinking."
It is going around that these individuals who received the bonuses may have to pay income tax and excise tax on the funds because of the large amounts for which they were paid out in.As of right now, congress is trying to figure out a logical way to get the bonuses back but AIG is saying the bonuses are written within the employess contracts.
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I was actually listening to the whole story about this situation on the radio this morning. What are these people thinking? The whole ordeal is absolutely ridiculous. These companies need to have business plans completely drawn up to the last cent before they receive any of the stimulis money. That way they dont go off and do something studpid like AIG did. The people that made that decision need to be fired! ASAP!
ReplyDeleteThe monumental arrogance of this company's executives, as well as those of other companies, who are paid outrageous salaries while rank and file workers are laid off, makes me truly ill. If ever reporters want to do all of us regular guys a favor, they will make it a top priority to expose such a blatant disregard toward the government and the taxpayers, who are footing the bill for these fat cats. My hope is that the coverage will be relentless; that these people will be named, exposed and publicly shamed. Furthermore, if the bonuses are not returned, they should be taxed 100 percent. People like Bernie Madoff and corporate executives who abuse this bailout money should be treated like the common criminals that they are.
ReplyDeleteIt's amazing what people do in the time of crisis. During a time of crisis, it normally show the true color of people. These people are selfish and greedy. Instead of helping people out who are in need of money, they selfishly distribute the money amongst theirselves. Hopefully this problem can be fixed.
ReplyDeleteWe discussed this in my American History class today. A lot of people are taking their bonuses, and quitting their jobs. The trouble with that is, they might be the ones who very well know how to get us out of this sticky situation. A more honorable thing to do, would have been for those people to reject the bonus pay, and shift their thoughts to other co-workers, and what they deserve.
ReplyDeleteUnfortunately, the world does not work that way. People are often times only in a situation for their own benefit.
This is a bit off topic, but while those people are getting such a big bonus pay, people in California have been evicted from their homes (the ones' who lost their jobs), and they're actually starting to camp out in tents once more.