his morning we have more news of what $170 billion in our taxpayer bailout “investments” purchase. The case in point is AIG’s disclosure last night that they were compelled to pay over $165 million to executives who are responsible for the companies overall financial difficulty. Just one of the many posts this morning can be found here.
While I’m sure this will be front page news all week and that senior AIG management will have to yield to the public outrage that will follow, clearly the bailout enables this sort stupidity. Because the government has chosen to prop up the weakest links, we should expect more of the same and continued massive public investment.
I took the time to review AIG’s quarterly conference call data. They knew what was going to happen in mid 2007, but nobody wanted to acknowledge reality, especially those whose bonuses would be affected by it.
If you want to follow the chronology look over the investor presentations here and pay particular attention to the May 9, 2008 conference call cover sheet which includes the tag line, The Strength to Be There.