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nyconse You guys miss the point...AIG is insolvent...living on taxpayer dime. 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.

It's worse than that, it was AIG Financial Products that tanked AIG, in 2008, under DeSantis, AIG FP lost 41 BILLION dollars. AIG 2008 10K Perhaps it wasn't the fault of DeSantis, but I am wondering what these guys did that was worth million-dollar bonuses.

MortMan:The bonuses were promised prior to the infusion of government money. The bonuses were originally supposed to be paid from the profits made by selling off profitable segments of the newly dismantled company.

So...where are the profits. See above. According to Liddy, the bonuses were promised in early 2008 because AIG saw FP as a continuing operation and wanted to set minimum pay levels for 2008 and 2009; once AIG hit a liquidity crisis caused by this division shouldn't the "mission" have been reconsidered as well as the bonuses?

Truth29:If we wanted to break the contracts, there was a process to do that through formal bankruptcy. That wasn't done.

Yep, that was the way to do it.

Once the government is seen as not a trustworthy partner, the costs of any public private partnership will go up with a further risk premium.

That would be a good thing, companies might not be so quick to rush to DC to beg for taxpayer money.

Perhaps not relevant...but interesting...there is a Jason DeSantis of who worked at AIG-FP of Redding CT who contributed $2100 to Chris Dodd's presidential campaign in 2006, and in the last election cycle AIG related contributions went 66% to Democrats. Is "Jason" "Jake," or is AIG-FP a family affair?