More On The AIG Bonuses

This is not about actual dollars as much as it’s about principle and pride.

I just watched Andrea Mitchell interview Pennsylvania’s Arlen Spector about the AIG bonuses. Senator Spector says the contracts are unenforceable because they violate public policy.

“In order to be enforceable, a contract cannot violate “public policy”. For example, if the subject matter of a contract is illegal, you cannot enforce the contract. A contract for the sale of illegal drugs, for example, violates public policy and is not enforceable.” –

OK–sounds good to me.

There has been some talk that this $165 million is a small amount in the general scheme of things. “Like pissing in the ocean,” comes to mind. I don’t disagree, but that’s beside the point.

This is not about actual dollars as much as it’s about principle and pride. It is wrong to reward disaster–and AGI’s situation is a worldwide financial disaster. Beyond that, we taxpayers are being played as fools.


As noted in the comments, this entry originally had a typo crucial to the actual meaning. My apologies.

2 thoughts on “More On The AIG Bonuses”

  1. “Senator Spector says the contracts are enforceable because they violate public policy.”

    I took Spectors comments to be that the contracts are UNenforceable?


    Dave is correct. Typo and I have changed the actual entry. – Geoff

  2. Shouldn’t we be furious at The President and Congress as well? They have their stamp all over this mess as well as AIG!!

    Sure–and the former president and congress. This didn’t just happen last week. By the time this administration came in the economy was already in freefall.

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