A rant

I need to look a lot more closely at these bonuses AIG is paying to some of its employees.  There has been considerable discussion on various law professor listservs I lurk on regarding the legality of various means of getting this money back.  There also, of course, is the sheer political pressure.  Congress cannot abrograte contracts, but that lack of legal power didn’t stop the economic realities from forcing the UAW to make major concessions on existing contracts.

That’s one big reason I am repelled that “Wall Street types and compensation consultants agree with the president {at being outraged by the payment of these bonuses]. But from their point of view, the “fundamental value” in question here is the sanctity of contracts.”

So the sanctity of contracts is inviolable for investment bankers who make millions and who work for the company that more than any other is responsible for the financial disaster we are living through.  But they don’t say anything about the sanctity of contracts when it comes to unionized auto workers.

Why do people need several million dollars a year to live?

And I love this rationale:

“The jobs are terrible,” said Robert M. Sedgwick, an executive compensation lawyer at Morrison Cohen who represents a number of employees of banks that have taken government money. “You have to read about yourself in the paper every day. These people are leaving as soon as they can.”

Those poor, poor investment bankers.  By that reasoning factory workers in China should be getting million dollar bonuses.

There of course is the power of shame.  I’d love to identify who the recipients of the bonuses are and have their names and faces plastered everywhere all over the internet so they couldn’t help but be recognized and reviled wherever they go.

I’m sorry.  I’m pissed off tonight.