Abandon Ship!

The old saying goes that the definition of insanity is “doing the same thing again and again expecting different results.” There is talk now of more money needed to keep the big banks afloat. It has become apparent that Bank of America “needs” billions of dollars more (roughly $34 billion, with a B). If it didn’t work the first time, why should it now?

As we shake our heads in disbelief from that news, I should also mention the updated regarding the audacious bonuses that insurance giant AIG paid out after the government bailouts. Turns out AIG’s estimates of the bonuses paid were off by a little – by a factor of FOUR!!!

The total number is believe the be around $450 million in bonuses, given (for incredibly poor behavior) as “retention bonuses.” Seems to me their employees are not going to find jobs elsewhere, so a retention bonus is superfluous at best and deceptive at worst. That is nearly half a billion in taxpayer money given to greedy CEOs already worth more than the average American will make in their lifetime.

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We own a substantial amount of companies that were on the brink of going under not to long ago. Now they are trying to defend what they call “retaining” bonuses: extra money to keep on executives. These are not the average “good-job, here’s a grand” bonuses that most professionals might be accustom. These are more than $1,000,000 bonuses. That is 20 times the average yearly income in the US – in a yearly bonus! 52 people who received these payouts are no longer with the company.

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