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.” – expertlaw.com
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.
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As noted in the comments, this entry originally had a typo crucial to the actual meaning. My apologies.
“Senator Spector says the contracts are enforceable because they violate public policy.”
I took Spectors comments to be that the contracts are UNenforceable?
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Dave is correct. Typo and I have changed the actual entry. – Geoff
Shouldn’t we be furious at The President and Congress as well? They have their stamp all over this mess as well as AIG!!
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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.