Are you unhinged? Do you not understand the most fundamental principles of business law and practice? Really, this is business 101.
Edward Liddy, in his sworn testimony to Congress yesterday, described in great detail the terms and conditions of these employment contract. If you like, feel free to Google his testimony. It might also help you to read the entire thread. A little self-eduction could do you wonders.
When a business in purchased, that business assets and liabilities are assumed by the purchaser. The employment contracts for these executives/employees are liabilities. When the US Taxpayer, vis-a-vis the US Congress, to an 80% equity position in AIG, it also took an 80% risk in the liabilities attached to AIG - AKA these employment contracts.
This is not complicated. What the US Congress is doing is clearly unconstitutional and a tremendous danger to our way of life.
I don't give a damn what that failure says on behalf of his good buddies. Were's the contract with the American taxpayer?
"When a business in purchased, that business assets and liabilities are assumed by the purchaser."
AIG is an unsuccessful business. It is a big failure and is so, because of the thoughts, decisions and actions of the clowns demanding the bonuses! They were rescued from bankruptcy by fed gov. What part of that don't you understand?
"Do you not understand the most fundamental principles of business law and practice? Really, this is business 101."
Business law? Here's contract law 101. The party with the greater assets wins the case. Fed Gov to the losers-sue me!
BTW. Conservative philosophy maintains that responsibility for one's acitons is required. That means you don't get cash bonuses for efforts that result in failure.