Sunday, March 15, 2009

Should AIG not pay out bonuses?

WSJ reported on the government being upset about the bonuses about to be paid out at AIG. Couple thoughts here --

1. Was the government so naive to think nothing like this existed when they lent them the money?

2. Once you get past the anger of how this company was managed and the systemic risk it created in the economy, do we expect people to stay and work even if someone else will pay them more?

3. Considering how Congress messes things up (removing regulations), can we retract their pay retroactively?