Sunday, March 22, 2009

AIG Paid Bonuses at the Expense of Tax Payers

The news that some employees in AIG's Financial Products unit received $165 million in retention bonuses has caused severe commotion throughout United States. This division dealt heavily in instruments called credit defaults swaps that lead to billions of dollars of losses. Government has paid AIG $170 billion in bailout money to help the insurer from going bankrupt and to avoid a serious blow to the world economy. In total, AIG is dishing out $450 million in retention bonuses. It was revealed in 2008 that some top executives of AIG spent more than $400,000 on spa treatment after the bailout money was committed by the government. This is the company that lost almost $62 billion in the last quarter of 2008.

The government of United States did nothing to stop AIG from paying out the bonuses. It has essentially made a mockery out of the tax payer's money. It seems as if the ordinary Americans are working hard, day and night, to fill the pockets of the same bankers and insurers who are responsible for pushing the US and the world into the financial mess. And the US government seems to be a party to this crisis. This is the government that controls or atleast thinks it controls almost the entire world. Why then, does it seem so helpless against its own bankers and insurers? It appears as if the people in the government are trying hard to cover up the financial king pins so that maximum amount of taxpayers' money is distributed among them before these giant companies collapse.

Public outrage is increasing day by day and the government will not be able to play games for long. People will, sooner or later, realize that the government is playing "good cop, bad cop", just to make a fool out of them. The preseident does nothing to stop the bonuses in the first place and then expresses his outrage in public to show the world the extent of his shock. It is becoming clearer that the people in power are just an extension of the greedy bankers and they are helping eachother out at the expense of the tax payer.

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