AIG: Rewarding Incompetence

Hard working Americans understand that if you don't perform up to expectations, or are just plain incompetent, you not only won't get a bonus, but you'll probably get fired! Small business owners know that if they don't make their bottom line, they will be out of business. So why is it so hard for Wall Street firms to get this simple principle?

Rep. Barney Frank charged Monday that a decision by financially strapped insurance giant AIG to pay millions in executive bonuses amounts to "rewarding incompetence."

Echoing outrage expressed on both sides of the political aisle in the wake of revelations that American International Group will pay roughly $165 million in bonuses, Frank said he believes it's time to shake up the company.

"These people may have a right to their bonuses. They don't have a right to their jobs forever," said Frank, a Massachusetts Democrat who is chairman of the House Financial Services Committee.

Appearing on NBC's "Today" show, Frank noted that the Federal Reserve Board, using a Depression-era statute, was the institution that gave AIG its initial government bailout, before Congress passed legislation providing for additional assistance. He said he did not think sufficient safeguards were built into that initial bailout by the Fed.

The $165 million was payable to executives by Sunday and was part of a larger total payout reportedly valued at $450 million. The company has benefited from more than $170 billion in a federal rescue. [...]

On ABC's "Good Morning America" Monday, Sen. Richard Shelby said Congress must do everything it can to make sure the government money going to AIG is handled appropriately.

"We ought to explore everything that we can through the government to make sure that this money is not wasted," the Alabama Republican said. "These people brought this on themselves. Now you're rewarding failure. A lot of these people should be fired, not awarded bonuses. This is horrible. It's outrageous."

These jerks PROFIT while many of us are losing our jobs, or struggling to keep them. Conservatives in Congress like to point the finger of blame at unions, but the REAL culprit in this mess are Wall Street companies who have so far bilked nearly a trillion dollars of our tax dollars.