Posted on 03/25/2009 4:03:51 AM PDT by Tom D.
DEAR Mr. Liddy,
It is with deep regret that I submit my notice of resignation from A.I.G. Financial Products. I hope you take the time to read this entire letter. Before describing the details of my decision, I want to offer some context:
I am proud of everything I have done for the commodity and equity divisions of A.I.G.-F.P. I was in no way involved in — or responsible for — the credit default swap transactions that have hamstrung A.I.G. Nor were more than a handful of the 400 current employees of A.I.G.-F.P. Most of those responsible have left the company and have conspicuously escaped the public outrage.
After 12 months of hard work dismantling the company — during which A.I.G. reassured us many times we would be rewarded in March 2009 — we in the financial products unit have been betrayed by A.I.G. and are being unfairly persecuted by elected officials. In response to this, I will now leave the company and donate my entire post-tax retention payment to those suffering from the global economic downturn. My intent is to keep none of the money myself.
(Excerpt) Read more at nytimes.com ...
No, we don't. One needs to have the contract in order to evaluate how its terms were met, or not. If it said "we won't fire you" and then they fired him, yes, they broke the contract.
[Feilbogen's] lawsuit claims Marty Wayne, managing director at AIG FP, sent Feilbogen a letter in June informing him that his employment was moving to AIG FP, and that he would work as a managing director, reporting to Wayne. In the letter Feilbogen was promised a base salary of $250,000 and told he would be eligible for additional discretionary compensation, it added.http://www.emii.com/article.aspx?ArticleID=1032636The lawsuit continues that the letter also stated that it "superseded all prior discussions, agreements and understandings of any kind and nature between [Feilbogen] and AIG-TG or AIG-FP regarding the terms of [his] employment." ...
Feilbogen then wrote to Joseph Cassano, president of AIG FP, stating that he would sign the letter if the "superceded" quote were removed and AIG agreed to honor the previously promised $1.3 million bonus for 2003, according to the lawsuit. It said that Cassano replied on July 9 that Feilbogen could choose to sign the letter as written, or resign from his post. Feilbogen did not sign the letter and was informed by Douglas Poling, general counsel at AIG FP, on the same day that his employment with the firm had been terminated "as a result of his decision to resign."
-- obviously, he would not have to sue if they honored his contract. --
The presence of a suit simply indicates conflicting interpretations of the contract language.
District of Connecticut 3:03-cv-01624-DJS Feilbogen v. AIG Trading Group, et al Dominic J. Squatrito, presiding Date filed: 09/24/2003 Date terminated: 09/08/2006 Date of last filing: 09/08/2006
Mr De Santis was involved in breaking the 2003 contract so he is a hypocrite.
He’s only against the bill NOW - you know that right? It was only after people started raising holy hell that Obama came out saying there “may be a problem”. Honestly, if the people of this nation were all as stupid as Obama thought we were (that we wouldn’t know a Bill of Attainder law when we saw it) Obama would NOT be against this bill. How could he when it was partly HIS idea in the first place? HE is the one who has been pushing this so hard - that “something must be done” about these people.
PS - I just wanted you to know as we discuss these things that I’m no fan of some of these big corporations and the way they do business. I lost my house partly as a result of what I guess could be considered fraud BY Washington Mutual. So, I’m well aware that not everything with these companies, banks, investment firms, etc... are on the up and up... I just refuse to let my anger and bitterness over that issue get in the way of looking at this objectively. Obama’s communist plans COUNT on people letting their emotions override their thinking on these issues...
He had a legal contract and was terminated for not agreeing to a new contract...seems clear cut to me.
I am so sorry. Wamu was one of the worst companies ever. If you google them, you see all the trouble anyone with loans or credit cards with them had. I am so sorry you lost your home-horrible.
Actually, to be fair, people don’t want AIG execs to receive bonuses which is why Cantor and other GOP voted for the tax bill...it’s politically dangerous to support AIG in any manner. The public hates them.
WOW.
Just ... wow
Perhaps the employee misunderstood his old contract to begin with? Again, presence of a suit and settlement do NOT necessarily signify guilt on the part of the person PAYING the settlement!
Another poster summed this up better than I did, and it appears that he is more familiar with this particular case than I. My comments are meant more in general than in regards to that specific case...
I’m just sensing a lot of anger emanating from your posts, which I understand completely. However, even IF AIG completely breached this former employee’s contract WITH INTENT to do so, it has NOTHING TO DO with these bonuses, or the actions taken by Congress in relation to them.
Again, don’t get me wrong. There is something definitely rotten, and it stinks to high heaven — investigation into the links between some executives and Congress are DEFINITELY WARRANTED here. And, other improprieties SHOULD be investigated as well. I merely wanted to caution that breach of one contract does NOT signify a go-ahead of breaching OTHER contracts involving OTHER people... It’s that old cliche that fits; “Two wrongs don’t make a right”
NO problem. And, I agree with everything you’ve said regarding WAMU as well. I was VERY HAPPY the day they went under - VERY happy. It’s even to the point that I’m almost embarrassed about HOW happy I was! LOL We’re much better off now than we were back then (it’s been 7 years). And, as God always does — He provides lemonade out of the lemons! It was truly a blessing in disguise, and we definitely learned a lot from the experience. So, all things considered, NOW at least, I’m glad it happened... Strange, but true.
You are deeply invested in a certain view of contract, as evidenced by your equating plant closure (Republic Window moves to Iowa); Feilbogen; and now DeSantis. Given the superficial and simple-minded analysis demonstrated by that, I would expect everything to be perfectly clear in your mind.
But every well-conceived contract includes a considerable amount of language describing the outcome, should "plans change."
I understand what you’re saying. However, I can’t support Cantor or any of the Republicans that voted for the Bill of Attainder law. IMHO, it should be more politically dangerous to pass an Unconstitutional Law than stick up for unpopular people! :)
The anger you speak of? The thing is — that entire mindset was CREATED by the same Dems who are now USING that anger to grab power. These people are nothing more than scapegoats.
It would be almost impossible to overcome the brainwashing that has taken place in regards to these AIG people by the politicians and the media. Other companies should take heed in order to avoid the same result themselves, if at all possible..
The workers at Republic had a contract...this company did not go out of business and was not bankrupt (they moved to Iowa) so why should this contract not be honored? It seems to me we only want to enforce contracts where people we identify with or like are involved...contracts enforced for AIG bonuses but not Republic. Really, it seems kind of hypocritical to espouse that all legal contracts must be upheld yet dismiss the contracts at Republic. How am I wrong?
If the fools who caused this leave...maybe some new blood will save taxpayers money. One can hope.
I agree with much of your post, but I have to say the GOP was also creating anger...I heard Shelby bash the bonuses with my own ears...almost fell out of my chair.
Perhaps he was in a situation where he could have been terminated without cause (subject to any commitments made by contract, pay due for days worked, COBRA rights, etc.). AIG could have fired him, but decided instead to offer him a job in a different unit. Maybe he's a non-performing employee.
I did not like Wamu either. I had a credit card offer and took it, but after I read the posts from others online, I returned it...they tried to make me pay some fee, but I refused. I am happy they went under also. No doubt if they were still around they would have put a hit job on my credit. They were famous for this practice.
It was a bonus contract-read the article. These guys don’t work at will they have contracts...working at will is for the little people like us not the hotshots.
I want to know why no one is really talking about the return on investment to the taxpayers that the 165 million in retention payments got us. Everyone seems to forget that for 165 million, 1.1 trillion of toxic assets were culled by these people that were promised the retention payments if they did just what they did.
The contracted for a job, performed as expected, and were totally hosed in my opinion.
Atlas will shrug soon enough, then there won’t be anything to take...
The contract at Republic was between the company and the union, and adhered to that particular local. Companies are free to relocate operations, roughly "at will." Whatever parts of the Republic/Union contract weren't upheld can be litigated, but Republic's relocation to Iowa is not a breach of contract.
A substantial volume of the complaint against Republic Window was a failure to comply with the law that requires giving a couple months notice of pending factory closure. It's probably cheaper to pay the fine than risking industrial sabotage by disgruntled union workers who have months of time inside your factory.
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