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View Full Version : Dear A.I.G., I Quit! - for those of you who have bought into the bogus bonus brouhaha



PoliCon
03-25-2009, 09:24 AM
Dear A.I.G., I Quit! (http://www.nytimes.com/2009/03/25/opinion/25desantis.html?_r=1)

Published: March 24, 2009

The following is a letter sent on Tuesday by Jake DeSantis, an executive vice president of the American International Group’s financial products unit, to Edward M. Liddy, the chief executive of A.I.G.

DEAR Mr. Liddy,

It is with deep regret that I submit my notice of resignation from A.I.G. Financial Products. I hope you take the time to read this entire letter. Before describing the details of my decision, I want to offer some context:

I am proud of everything I have done for the commodity and equity divisions of A.I.G.-F.P. I was in no way involved in — or responsible for — the credit default swap transactions that have hamstrung A.I.G. Nor were more than a handful of the 400 current employees of A.I.G.-F.P. Most of those responsible have left the company and have conspicuously escaped the public outrage.

After 12 months of hard work dismantling the company — during which A.I.G. reassured us many times we would be rewarded in March 2009 — we in the financial products unit have been betrayed by A.I.G. and are being unfairly persecuted by elected officials. In response to this, I will now leave the company and donate my entire post-tax retention payment to those suffering from the global economic downturn. My intent is to keep none of the money myself.

I take this action after 11 years of dedicated, honorable service to A.I.G. I can no longer effectively perform my duties in this dysfunctional environment, nor am I being paid to do so. Like you, I was asked to work for an annual salary of $1, and I agreed out of a sense of duty to the company and to the public officials who have come to its aid. Having now been let down by both, I can no longer justify spending 10, 12, 14 hours a day away from my family for the benefit of those who have let me down.

You and I have never met or spoken to each other, so I’d like to tell you about myself. I was raised by schoolteachers working multiple jobs in a world of closing steel mills. My hard work earned me acceptance to M.I.T., and the institute’s generous financial aid enabled me to attend. I had fulfilled my American dream.

I started at this company in 1998 as an equity trader, became the head of equity and commodity trading and, a couple of years before A.I.G.’s meltdown last September, was named the head of business development for commodities. Over this period the equity and commodity units were consistently profitable — in most years generating net profits of well over $100 million. Most recently, during the dismantling of A.I.G.-F.P., I was an integral player in the pending sale of its well-regarded commodity index business to UBS. As you know, business unit sales like this are crucial to A.I.G.’s effort to repay the American taxpayer.

The profitability of the businesses with which I was associated clearly supported my compensation. I never received any pay resulting from the credit default swaps that are now losing so much money. I did, however, like many others here, lose a significant portion of my life savings in the form of deferred compensation invested in the capital of A.I.G.-F.P. because of those losses. In this way I have personally suffered from this controversial activity — directly as well as indirectly with the rest of the taxpayers.

I have the utmost respect for the civic duty that you are now performing at A.I.G. You are as blameless for these credit default swap losses as I am. You answered your country’s call and you are taking a tremendous beating for it.

But you also are aware that most of the employees of your financial products unit had nothing to do with the large losses. And I am disappointed and frustrated over your lack of support for us. I and many others in the unit feel betrayed that you failed to stand up for us in the face of untrue and unfair accusations from certain members of Congress last Wednesday and from the press over our retention payments, and that you didn’t defend us against the baseless and reckless comments made by the attorneys general of New York and Connecticut.


CONTINUED

Odysseus
03-25-2009, 09:55 AM
I guess we know who's going to be getting the "Joe the Plumber" treatment from the media this week.

ReaganForRus
03-25-2009, 09:56 AM
I read this article.........it is a measured and extremely well thought out response. The article shows just how far the media and elected officials have fallen when reasoned and thoughtful thinking and common sense are jettisoned for power and political reasons.

linda22003
03-25-2009, 09:56 AM
It says "continued" - where's the rest? It starts off very well.

ReaganForRus
03-25-2009, 10:15 AM
It says "continued" - where's the rest? It starts off very well.

NY Times

PoliCon
03-25-2009, 10:28 AM
It says "continued" - where's the rest? It starts off very well.

click on the underlined bit linda. DUH. :p

marinejcksn
03-25-2009, 02:27 PM
Jake DeSantis, an executive vice president of the American International Group’s financial products unit (who had NOTHING to do with the Credit-Default Swaps that led to the collapse of AIG) wrote the following letter to Edward M. Liddy, the chief executive of A.I.G.

DEAR Mr. Liddy,

It is with deep regret that I submit my notice of resignation from A.I.G. Financial Products. I hope you take the time to read this entire letter. Before describing the details of my decision, I want to offer some context:

I am proud of everything I have done for the commodity and equity divisions of A.I.G.-F.P. I was in no way involved in — or responsible for — the credit default swap transactions that have hamstrung A.I.G. Nor were more than a handful of the 400 current employees of A.I.G.-F.P. Most of those responsible have left the company and have conspicuously escaped the public outrage.

After 12 months of hard work dismantling the company — during which A.I.G. reassured us many times we would be rewarded in March 2009 — we in the financial products unit have been betrayed by A.I.G. and are being unfairly persecuted by elected officials. In response to this, I will now leave the company and donate my entire post-tax retention payment to those suffering from the global economic downturn. My intent is to keep none of the money myself.

read the rest here (http://www.nytimes.com/2009/03/25/opinion/25desantis.html?_r=2&ref=opinion&pagewanted=all)

Well done Sir. Well done. :cool:

PoliCon
03-25-2009, 02:48 PM
http://www.conservativeunderground.com/forum505/showthread.php?t=12803&highlight=quit agreed - :p

patriot45
03-25-2009, 03:39 PM
Boy oh boy, you should read some of the wealth envy comments! Sheesh, its like the whole DUmp making them!


2009 12:24 pm
Link
OK, Jake, I'm going to say it again: NOBODY deserves to be paid $700,000 for a year's work. It's an obscenely huge amount of money that can have no relationship to the work actually done.

A 700,000+ bonus? What world does he live in? (Not my world, that's for sure).

Hint: If your company accepts tens of billions of dollars from taxpayers, consider your bonus renegotiated.


You still don't get it. You worked as a senior level executive at a company that lost $60,000,000,000 and yet because you claim no responsibilty for that loss you think your still entiteled to a million plus bonus

PoliCon
03-25-2009, 04:13 PM
Boy oh boy, you should read some of the wealth envy comments! Sheesh, its like the whole DUmp making them!
Notice that these kinds of people never complain about how much Al Gore makes or how much their favorite sports star makes . . . . It's only when people work with money - ie in an actual business - that these people complain . . . .

marinejcksn
03-25-2009, 04:14 PM
Boy oh boy, you should read some of the wealth envy comments! Sheesh, its like the whole DUmp making them!

Does this a-hole in the DUmp have problems with Liberal "Actards" like Sean Penn and Tim Robbins making over 700 grand a year? What about pro athletes?

My guess is no.

linda22003
03-25-2009, 04:38 PM
People at DU don't personally know anything that makes them worth that much money; therefore, no one must know anything that makes them worth that much. :rolleyes:

Odysseus
03-25-2009, 06:57 PM
Y'know, it occurs to me that Hollywood actors and directors, especially the a-list, get paid no matter how their movies do. Clearly, there should be a payback schedule for stars who make movies that fail to recoup their costs. The spate of anti-Iraq War movies that lost more money than AIG should have resulted in punitive taxes against Robert Redford, Brian DePalma, Reese Witherspoon and every other celebutard who tried to cash in on the backs of the troops. They should have to pay back those studios for the money lost on their idiotic vanity projects. :D

PoliCon
03-25-2009, 07:08 PM
has the DUmp picked up this topic yet?

lacarnut
03-25-2009, 07:23 PM
Notice that these kinds of people never complain about how much Al Gore makes or how much their favorite sports star makes . . . . It's only when people work with money - ie in an actual business - that these people complain . . . .

Plus they would never complain about a billionaire like George Soris or Hollywood types that make millions doing 1 picture or fat ass Oprah with her fortune or Barbara Wa Wa.

marinejcksn
03-25-2009, 09:08 PM
Y'know, it occurs to me that Hollywood actors and directors, especially the a-list, get paid no matter how their movies do. Clearly, there should be a payback schedule for stars who make movies that fail to recoup their costs. The spate of anti-Iraq War movies that lost more money than AIG should have resulted in punitive taxes against Robert Redford, Brian DePalma, Reese Witherspoon and every other celebutard who tried to cash in on the backs of the troops. They should have to pay back those studios for the money lost on their idiotic vanity projects. :D

Damn Sir, I never even though about this, that's brilliant! I might have to call The Great One and tell him that idea. I'll give you the credit for it, of course. :cool:

PoliCon
03-25-2009, 09:11 PM
Plus they would never complain about a billionaire like George Soris or Hollywood types that make millions doing 1 picture or fat ass Oprah with her fortune or Barbara Wa Wa.

no of course not. Only those people who actually make the capitalist system work as opposed to those who sponge off it as parasites.

hazlnut
03-25-2009, 10:23 PM
I hate being right...

A couple nights ago, I floated this idea to a group of friends (both cons and dems): Liddy's professional reputation from this point on is going to be based on his ability to salvage AIG, therefore... he has no vested interest in keeping on people who were the problem... Though I have no evidence(meaning I don't have an informant at AIG human resources feeding me names and dates of employment), I'm betting most the the traders who worked in the special products division from '98-'05 are long gone. The people working there now are probably relatively new hires brought on specifically put out fires and stabilize the company.

So?--my friends asked...

Taking away their bonuses might have unintended consequences...

Of course almost everyone in the room bit my head off...

Gingersnap
03-25-2009, 10:31 PM
I hate being right...

A couple nights ago, I floated this idea to a group of friends (both cons and dems): Liddy's professional reputation from this point on is going to be based on his ability to salvage AIG, therefore... he has no vested interest in keeping on people who were the problem... Though I have no evidence(meaning I don't have an informant at AIG human resources feeding me names and dates of employment), I'm betting most the the traders who worked in the special products division from '98-'05 are long gone. The people working there now are probably relatively new hires brought on specifically put out fires and stabilize the company.

So?--my friends asked...

Taking away their bonuses might have unintended consequences...

Of course almost everyone in the room bit my head off...

Amazingly, (given your performance on this board so far) you may be right. Employment contracts (and I have one) are not based on merit exclusively. Performance may or may not be a factor. The people getting the bonus pay are people who signed a contract last year and who mostly have nothing to do with the failure part of the company (those people have already left).

Allowing the government to step in and punish evil-doers based on compensation - not merit - is wrong.

PoliCon
03-25-2009, 10:34 PM
Allowing the government to step in and punish evil-doers based on compensation - not merit - is wrong.

Right - but if they were to start basing punishment on merit - they would have to start in their own ranks and well that would set a dangerous precedent. Of course Hazlnutter will find a way to blame it all on capitalism. :rolleyes:

JDiddyGalt
03-25-2009, 11:03 PM
Boy oh boy, you should read some of the wealth envy comments! Sheesh, its like the whole DUmp making them!
The mentality, or lack thereof, that presumes to know the value of a job they know nothing of, is what we are facing as they are now "large and in charge".