Dear AIG: I Quit!

In the ongoing saga of the economic crisis, AIG has been squarely portrayed as the villains. Everybody piled on the bandwagon of villifying the greed and brazenness of their multi-million dollar bonuses (yes, including this blog).

But is that the full and true story? Here's a letter published in the Opinion section of The New York Times - it's a resignation letter, actually, sent by Jake DeSantis, an executive VP of the AIG's much maligned Financial Products unit, explaining why he quit:

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.

Link

(Photo: jdiggans [Flickr])


I'm with Craig: No sympathy. And let's think about the AIG exec's actions in the big picture: Would you hire him to be an executive at your corporation? After he blasted his current employer in a public forum? I doubt it. His public "resignation" is less than professional and rather obviously illustrates the type of egocentric behavior seemingly emblematic of the AIG Financial Products group. AIG was a great insurance company, but like Citibank and the rest, they should never have stepped into the financial arena...not with knuckleheads like this guy. It's all so self-serving and rewarding failure is the WORST model for our children to follow.
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I feel bad for the guy. The real idiots are us, average American Citizens, for allow our irresponsible government to rob us from under our noses with these bail out plans. Tim Geithner and Bernanke knew about this and yet most of America is calm regarding them and their knowledge about it. And yet Obama stands behind Geithner who has no idea what he is doing in the financial market and many people leave not wanting to work for him or besides him.

If you support the TRILLION $$$$ plan from Obama, than you are a FOOL. Try paying off debt with a debit card when you don't have money in the bank. That is what our once great government is now doing.
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I like how these phonies try to make themselves "honorable." Funny how this one person that wants to show the world what a 'great' guy he is, can only pontificate because of the insane amounts of wealth he has. No doubt he has a nice chunk of change from his massive bonuses and insane salary amounts from previous years, not to mention the fancy penthouse suites, cars, and yachts. There is no way the rank and file could afford to quit like that. We have bills to pay and mouths to feed.

What an idiot.
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Geekazoid wrote:

I like how these phonies try to make themselves “honorable.” Funny how this one person that wants to show the world what a ‘great’ guy he is, can only pontificate because of the insane amounts of wealth he has. No doubt he has a nice chunk of change from his massive bonuses and insane salary amounts from previous years, not to mention the fancy penthouse suites, cars, and yachts. There is no way the rank and file could afford to quit like that. We have bills to pay and mouths to feed.

The man had a salary of $1 a year. Other than that, his only compensation was his retention bonus -- which AIG agreed to pay him, by contract. What is wrong with demanding to be paid that which he was promised? What is right about the federal government stealing that money because he and his co-workers are unpopular?

If government can simply take money away from those that the mob dislikes, then none of us are safe.
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Well John, correct me if I'm wrong, but isn't the bailout of A.I.G. and their ilk funded by tax payers, like you and me? I think we the "mob" have every right to demand accountability and how our money, not their money, our tax payer money, gets used. I don't see how our tax money should go towards paying any bonus, that is obscene. It's too bad if they were promised a retention bonus- contracts get broken all the time (ever heard of a thing called 'Stop Loss').

My point is in regards to this one V.P., if he's trying to portray himself as some honorable and principled man, well, he failed. A one dollar salary means little when it's for a guy that is worth millions. Now if it were a man that was worth only thousands, has a car loan, mortgage, and two kids to feed and was in a financially precarious situation, then I would respect him. Heck if I won the lottery I'd have no problems taking a 90 percent pay cut at my current job just to reward my hard working junior employees.

And I agree with you Wok. Here's the world's smallest violin.....
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Wondering if maybe the public officials that are making all these decisions (especially the ones in charge of oversight of the banking industry (Barney Frank, Chris Dodd)) shouldn't also agree to work for $1. Where was the oversight? And now they get to point the fingers? I'm sure their lobbyist "bonuses" would more than make up $1 Mil per representative.
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i find it interesting how every other industry is allowed to fold from the beginning of time, but now the government decides the banks - which made their beds by loaning 100% or more, etc. should be saved.

its capitalism. sell off your remaining assets and close your doors. dont get any money for your hard work... thats the way it should have been. its not up to A.I.G. to make promises they cant fulfill without goverment handouts... if they promise the money from what they are assured to make, great. if they have to take taxpayers money(and why did they get it in the first place?) to do so, then the contracts are no longer valid.

im sorry if someone asked for your three quarter of a million dollar bonus back. if you want to get paid for working, go to a place that has money with which to pay you. otherwise, go whistle.
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the full story is: your company took taxpayer money in order to try to stay afloat. you shouldn't get bonuses, you should not pass go. it's simple, really.
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That man AGREED to take a $1 to clean up the mess his team made. Regardless of what he says, the Financial Products division IS the division that caused this whole mess. And HE was EXECUTIVE VICE PRESIDENT of that division.

If he didn't know what was going on, he should have been fired.

I wonder if the charity he gave the money to has his wife on the Board of Directors.
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This is one of the best examples of a manufactured scandal I can think of.

They are handing out TRILLIONS and TRILLIONS of dollar to the very people who CREATED the problem. But, only those who are politically connected.

And people are freaking out about a few measly million dollar bonuses? Seriously, WHO GIVES A FLYING FUCK?

Bernake and Geithner's heads should be on posts in the middle of Washington D.C. I don't care what this guy has to say, but I'm not going to get agitated about his bonus.
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Jake DeSantis is just a perfect scapegoat, he work hard to become what he is today, his employer should rightfully defend for his employee, which they didn't.

feel sorry for the guy, but yet i don't , just a perfect scapegoat.
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Unbelievable how much anger is directed at AIG. You've all been played by the government who are the biggest crooks in this mess. They created the mess and now they're forcing us taxpayers to pay for it. Meahwhile, they're taking all the rage that should be directed at the government and deflecting it at corporate execs. This is class warfare here. Please go to wikipedia and read up on Mao Zedong. I fear our country is heading in that direction.
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The problem is that AIG does a lot more than what failed their company; they're an insurer, not a bank. The government should pay for them to disband their banking division and be done with it.

That said, getting upset about the bonuses won't make it better, as it was 1% of the bailout paid to them. If you want to get upset about bailing them out, that's fine (I disagree) but getting upset at the bonuses draws attention away from the real problem.

This guy donating his bonus does nothing, and he's just calling attention to himself. He should've saved the bonus since he will not be hired by any company on wall street again.
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my only suspicion is how could he not know what was going on even if he didn't work in that particular part of the company. He had to have known.
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Let's see- we are all up to our eyeballs in debt because of irresponsible borrowing and consuming, we have gotton into trouble with our debt practices and need some guidence and answers from our elected leaders.

The answer -as demonstrated by example from our government: BORROW MORE MONEY!

Who voted for this clown,stand up and admit it.
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To those asking who John Galt is... did you even read the book? How does this shlub even compare to him? What accomplishments do any of the AIG executives have to show - aside from running their company into the ground and sticking out their hand for our help, our money. So yeah, if you want these people to disappear and leave us to fend for ourselves, good riddance.

Who are the Golgafrinchans?
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"In the name of the best within you, do not sacrifice this world to those who are its worst. In the name of values that keep you alive, do not let your vision of man be distorted by the ugly, the cowardly, the mindless in those who have never achieved his title."

-Ayn Rand
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JH, I realize that Jake DeSantis doesn't have much in common with John Galt, since he is a fictional character. Its more of a commentary on how AIG is viewed by a majority of the public. First of all AIG is vilified by the increasingly government influenced media, just like every other large influential company (except Apple of course). Then conveniently the government swoops in to 'save' (aka nationalize) this failing corporation using, like you said, our money. And thirdly how this successful executive who instead of going down with the ship and refusing to work for government goons has the chutzpah to resign on the grounds of his moral values is made to look like a whining quitter. As for the Golgafrinchans, i think they are that family on E! with the new show "Keeping Up with the Golgafrinchans"...
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Mr. DeSantis asks us to pity him. He got a bonus that after taxes was worth $740,000 to him, which means he probably got more than $1 million of taxpayer money. For what? For leading AIG into a vastly speculative suckers' game where he gambled, big-time, and lost?And because we bought into Reagan's idiocy of deregulation, we now have to bail him out. Why the hell should he get a bonus for that? He ought to be out on the street standing in an unemployment line with the rest of the people who lost their houses and jobs in this crazy financial game DeSantis helped promote.

So he's going back to his multi-million dollar Connecticut mansion and sitting on his pity-pot. He and his ilk should all be in jail.
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So contracts are okay to break if the ones who benefit from them make more than a certain amount of money? Just trying to figure out where the line lies.
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