Wednesday, March 25, 2009

Trying on $400 dollar shoes

Just to try and understand the attitude of the banksters.

The Mindset of an AIG executive by Diane Brady

Some select quotes from the article:
“I was in no way involved in — or responsible for — the credit default swap transactions that have hamstrung A.I.G.” The list of who to vilify grows ever smaller. Even colleagues in the financial products unit are determined to distance themselves from the credit default swaps. These were highly profitable products produced by highly compensated (and, I would guess, much celebrated) people when times were good. Now, it would appear that a handful of largely anonymous—and now departed—executives are responsible for AIG’s downfall, not an institution that fostered and rewarded a culture of risk.

“The profitability of the businesses with which I was associated clearly supported my compensation.” This is the argument that has so many people feeling so angry. Just because you write enough transactions to rack up, say, $100 million in profits for your firm doesn’t mean you’re automatically entitled to millions in compensation. By that logic, producing millions in losses should send you reaching into your own pocket to repay your salary. For too long, there have been excessive rewards for short-term profits and little if any incentive to protect against the downside.

4 comments:

Mahakal / מהכאל said...

Yes, the idea that one should be entitled to a share of the profits without being exposed to a share of the losses is nonsense. Good riddance to this guy, I've been saying for awhile that anyone who kept their bonuses ought to resign, and at least he did that.

ellroon said...

And think how crushed he is that he'll not be able to go partridge hunting again...

Distributorcap said...

the robber barons of today make the robber barons of yesterday look like MOther Teresa

ellroon said...

Can we threaten the Cayman islands with invasion unless they hand over the ill-gotten gains of these guys?