(Not so) hidden between the lines of the AIG bonus fiasco is the fact that almost all the bonuses were paid to AIG derivatives people, not the top company brass as the foaming-at-the-mouth MSM has it.
The bonuses were similar to a sports team's Free Agent retention bonuses.
Except that they didn't work. Two-thirds of the derivatives writers and traders who were paid the bonuses left the employ of AIG anyway.
What dummy writes a retention-bonus contract which allows the employee to collect the bonus if they quit? No sports team would do that.
The bottom line here is that these bonus people were largely responsible for the fall of AIG in the first place, since it was their Credit-Default Swaps which failed, and plunged the derivatives market back into the Stone Age (where it should stay, BTW, we don't need that phony money in our economy).
So, the bonus controversy serves a very important purpose: it will eventually provide a list of who these idiots were who bundled the CDS' that toppled AIG and the equities market last year.
If there ever was a justification for maintaining a "black list", this is it: not one of those bonus recipients/derivatives jerks should ever be able to get a job even so low as sweeping the floor of a stock exchange again. Let them sell used cars for a ghetto sleazebag used car dealer, they seem well qualified for that.
The government may be biting off more than it could chew trying to recover the bonus money, and I suggest that they don't even try. Not because it wouldn't be just to recover every dime, but because there's a better way: just dock that money from the next bailout request for AIG, and that would be the request AFTER it's properly pared down of such bloat as these bonuses.
Oh, and since the US Taxpayer now owns an 80% stake in AIG, let's make sure that there is 80% representation of taxpayers on the AIG Board of Directors.
I propose that the local jury pool be tapped for providing the Directors, since the Board has shown that all their business acumen has done the company no good anyway and lay people ought to be able to do just as well.
The first job for that new Board would be to review every single employment contract that AIG has in force, and reopen every one to new terms that reflect the reality of doing AIG's business in a de-leveraged marketplace.
Hell, give every AIG employee a Civil Service or Wage Scale rating, and the pay that goes with it. Since these employees can't even claim the efficiency of shovel-leaning Government workers, they shouldn't be paid more than them, either.