AIG

So AIG used a fraction of the money to pay bonuses to many upper management employees. I can only blame this on the AIG executives who proposed and signed this agreement a year ago and the Bush administration giving AIG money without stipulating that former agreements can and will be terminated at the appointed executives digression, if that would have even been legally possible. Travis? It appears that this was a hurdle needed to maintain and even encourage the balancing of AIG's books even though Liddy said it was not a performance based pay. Many democrats and some republicans seem to think that this is a matter worthy of causing the collapse of the banking system stating that giving 100+ million in bonuses is a misuse of the American tax dollar and that AIG should forgo fiduciary responsibility and withhold paying the bonuses. Cant do that. Further, I think that it was necessary to prevent the collapse of AIG. Just saying that Liddy should have withheld payment doesnt make that the right choice.

I'm particularly upset AIG was allowed to create a debt greater than the United States deficit. Where was the regulatory mechanism to prevent this?

Correct me if I'm wrong, I havent really had a chance to read up on this and I'd be happy to hear other opinions.