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.
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.
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.