Criticism of AIG Bonuses Intensifies

Criticism of AIG’s decision to pay $165 million in bonuses to employees of its particularly troubled financial products unit got off to an early start Monday with Rep. Barney Frank telling viewers of NBC’s Today Show that the payments amounted to “rewarding incompetence,” and suggesting it might be time to do some housekeeping. “These people may have a right to their bonuses,” the Massachusetts Democrat said referring to the fact that the bonuses were included in contracts AIG signed last year. But Frank, the chairman of the House Financial Services Committee, went on to say, “They don’t have a right to their jobs forever.” AIG has received some $173.3 billion in federal bailout money, and Frank suggested the government should intervene. “Maybe it’s time to fire some people,” he said. “We can’t keep them from getting bonuses but we can keep them from having their jobs.” Sen. Richard Shelby was just as angry during an appearance on ABC’s Good ... (link)