Dear A.I.G., I Quit

New York Times ^ | March 25, 2009 | Jake DeSantis

[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.

[Alberta's Child]

Who would work for no salary but a lump sum at a future date in a company that is $100B+ in the hole going down in flames?

This is exactly why they'd be foolish to give any of the bonus money back. This bonus they just received is likely to be the last one they ever receive, and they'd best get it while they can.

[Alberta's Child]

Liddy should never have promised bonuses using taxpayer money. It’s just plain wrong. You can not reward an employee based on how he/she is doing in one division or whatever if the company is failing...this is what got Wall Street in trouble in the first place.

Then they should have told the people last year that there wouldn't be any retention bonuses. That way nobody would have been working for a salary of $1 in the first place, and anyone who didn't feel he/she was compensated properly would have walked out the door MONTHS AGO.

[nyconse]

No doubt, but they were not told...so who’s fault is it? In my opinion, it is the management, what are we supposed to pay bonuses from taxpayer funds for every employee some bailed out exec promised one to?

[nyconse]

I don’t know...it could very well have been the former very richly reward CEO who drove the company into the ground...doesn’t matter. I could tell an employee anything, but do I have the authority to make good on this promise...not if it involves taxpayer money.

[nyconse]

Yeah, let’s screw the taxpayers while we can...the loss of jobs, 401K’s and all the other ways these people found to crash the economy is insufficient of course. One thing, I hope you are correct. I hope the Wall Street banks and other companies will think twice about rewarding failure while driving their companies into the ground.

[Truth29]

"Don?t cry for me AIG. Hell if he can afford to work for one buck a year, whats he complaining about? Certainly not the retention pay right? Either work for a dollar a year or shut up. Don?t say your working for a dollar a year and then complain you ain?t getting retention pay."

He was working under a deferred compensation agreement. He was not expecting to work for $1 period. If we start breaking contract law whenever it is unpopular, then we will have no basis to seek public private partnerships and no ability to work for other than immediate compensation.

[Abathar]

"The 85 include Eric Cantor, by the way -- the Republican House Whip, I believe."

It was a political decision, and a wise one IMHO. It was going to pass no matter what, by adding votes from Republicans it kept the left from beating us with it later. I don't like it, but it was a prudent move that didn't affect the outcome at all.

[Condor51]

The NY Slimes knows where its bread is buttered - Wall Street.

So Hell hasn't froze over, Pigs haven't sprouted wings and Monkeys aren't flying out of my butt. By them publishing this they're just covering their flank.

[Alberta's Child]

What are we supposed to pay bonuses from taxpayer funds for every employee some bailed out exec promised one to?

Yes.

Keep in mind that an employment contract carries a lot of weight in any legal proceedings in the U.S. I may be wrong about this, but I believe employees are placed almost at the very top of the list of "creditors" in any bankruptcy or liquidation proceeding (right after the IRS).

If I were in DeSantis' position I'd have the same attitude. Eff them all . . . especially the government-appointed lackey Liddy and those @ssholes in Washington who sanctimoniously complain about these bonuses even as they themselves drive this country into financial ruin.

[bcsco]

Liddy should never have promised bonuses using taxpayer money. It’s just plain wrong.

You're missing the point. Those contracts were already in place at the time Liddy came onboard. They were legal contracts, lawful and binding. And now our government is treating them no better than trash.

[nyconse]

The UAW contracts were lawful also, but in return for the money...they have to be broken. Contracts are broken everyday as any lawyer can tell you. In fact AIG has been sued for breaking contracts previously.

The case in question came in 2003, when a fellow named Rob Feilbogen worked for AIG Trading. When AIG Trading was put under the control of AIG Financial Products — the very unit that just gave out $165 million in bonuses — Rob got a letter saying that the $1.3 million bonus he’d been promised by AIG Trading wasn’t going to happen.

Rob fought back. He was told to accept the new terms or resign. He kept fighting, and then got a letter from a company lawyer saying that he’d been terminated ”as a result of his decision to resign.” Rob sued, and the case was eventually settled out of court. But clearly, AIG didn’t always think that contract bonuses were inviolable. That only came when the dime was on the U.S. government.

[nyconse]

Well, I disagree...a bonus is not a salary. As for bankruptcy...It depends. I worked at a company that went bankrupt and never received a dime...You can not convince me this is right.

[nyconse]

They are no better than trash...given by a company that new it was failing...really an Enron type situation...they should be prosecuted in fact.

[bcsco]

If you wish to defend our government breaking a lawful public contract through an unconstitutional act (bill of attainder), then good for you. That tells me all I need to know.

Goodbye.

[battletank]

AMEN! on everything you’ve said! I’ve been patiently waiting for a TRUE patriot to stand up and tell them all to suck wind. FINALLY one emerges from the weeds of lies and political opportunism and death threats all spouted from our very own congresscreeps.

[nyconse]

Actually, I heard that the tax thing will not go through so some of those crooks will keep their bonuses...as for a bill of attainder, I heard this would hold up to legal challenges by several credible lawyers who knows...Lawful contracts are broken ever day. Although, I don’t consider this one lawful...but fraud. Yes, I don’t want taxpayer money used in this way.

[Antoninus]

I really wish the Wall Street wizards who show up on capital hill had the balls to tell the Barney Franks and Chris Dodds of this world to kiss off. Instead, they go up there hat in hand to take a beating and the blame.

Why? They have been threatened. They are afraid and they are gutless.

[Cboldt]

-- Instead, they go up there hat in hand to take a beating and the blame. Why? --

Follow the money.

[Alberta's Child]

Keep in mind that we now have the U.S. Congress looking to impose a tax rate of 90% or more on these bonuses -- while at the same time something like 1/3 to 1/2 of the bonuses were paid to people outside the U.S. (and therefore not subject to U.S. taxation).

This is absolute idiocy.

Notice that not a single person in Washington is calling on those Europeans who received part of the bonus package to "do the right thing" and return some or all of the money (like they're calling on AIG employees here in the U.S. to do exactly that).

Any foreigner who got such a request from a member of Congress would "do the right thing" and tell that Congressman to "f#%& off!"

And "f#%& off" he would.

[Cboldt]

-- I worked at a company that went bankrupt and never received a dime. --

How long did you work under the circumstance of not being paid? Were you [supposed to be] paid weekly, biweekly, monthly, annually; yet never got paid?