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Yet being Bailed Out AIG, has got US President Obama boiling ,yet helpless…..It has received Billions in Bailouts to keep afloat…and yet has just declared Employee Bonus of US $ 165 Million…says it is a contractual obligation !
And guess what !…they think they need to give it ,otherwise this will disgruntle employees who may leave……same employees who created the excessive leverage mess in the first place !…they say they need these employees to stay with AIG because only they know what they did and only they can defuse it !
Holy S…!….reminds me of mid 1980s when I was a junior in KPMG (KMG a the time) at their overseas office in the Middle East
I was assigned to do some audit work on a Client that used to Import Consumer Goods….The Chief Accountant was an Indian…he had failed his Final CA Examinations several times and had left CA…He thought as I was yet studying to be a CA,he could bully and hoodwink me……Computers were just being introduced,but this Client had Manual Ledgers
This stupid fellow had deliberately messed up Accounting Entries on a big scale…why !?…so that the Client needs him the next year to sort out accounts and he retains his job !…..The Trial Balance would not tally and this Accountant was unable to trace his own deliberately created accounting errors….he pleaded and pleaded and pleaded with me to sort out the mess for him and locate his errors !…..Of course I was indignant but relented as my senior,who knew the accountant, personally requested me to help him out…I did and warned this guy,that by doing what he had done he was actually jepordising his career even more !
So,they want to retain rogue AIG Employees by giving them the Bonus and hope they defuse the crisis they created !…or else they fear they may leave and play the book against specific AIG Positions that they had created themselves and make monies outside !….Is this not criminal !?….The authorities should not succumb to this potential blackmail fear !…What is wrong is wrong !…It’s like these employees are saying ” Give us the Bonus and we’ll show you where we hid the Derivative Weapons that killed AIG !”
Really America continues to behave Absurd !…and a Helpless President rages on !