In a weekend dedicated to college basketball tournaments, there was one "upset" that trumped them all: AIG was giving its executives bonuses.
Yes, this is the same AIG that lost $62 Billion last quarter. It's also the same company the government has bailed out four times, to the tune of $173 Billion. AIG, though not a bank, engaged in some the same risky financial behaviors that brought the subprime-happy economy to its knees. How does that kind of performance constitute a bonus?
AIG claims the bonuses are required by contract, written in before the economy went haywire. Can anything be done stop the bonuses? Angry lawmakers promise to find out. Rep. Barney Frank, Chairman of the House Financial Services Committee, said on the Today Show Monday that officials did not attach enough conditions to bailout funds given to AIG.
What do you think? These are unprecedented times. Should lawmakers be able to change the rules on how AIG uses its bailout money, now that we know some of its going to the pockets of executives? Should the contract AIG had with its workers be honored?