We dislike the bonus issue on principle, and it has our interest

Regarding the AIG bonuses--the hold-out guys are the Financial Products unit. I've already railed that the problem with the instruments involved in everything from subprime mortgages to CDS's was the idea that it was a "product." While I respect a contract of employment as much as the next union gal, I still have to wonder to what extent the "bonus" is a guaranteed deliverable part of the employee's compensation package--is it in no way tied to performance or the company's welfare? Seems like this should be a "teachable moment" for the industry to get them to recognize that giving away money is not a "product" if they can't recoup cost-plus. Otherwise, they are giving away money. Seems straightforward enough.

Also I question whether the "retention" argument holds a lot of water. Okay, say you're a high-level manager who got told, nope, Virginia, there is no Santa Claus, and your stocking is going to be light this year. You want to peddle your CV around the industry pretty much letting it be known that the company at the top of the resume nearly failed and you left because you didn't get your perk? Many employers value loyalty. Many companies in the field are in the same boat--they might not be so sympathetic as they once would have been.

Also, some of the people who were getting bonuses were no longer with the company. Rentention, my shiny red tuchis.

I know it's only $165 million. But a hundred million here, a hundred million there--I think you're talking real money. I wonder if it really can be possibly that only the people who made the deals can unwind them (dubious), but the thng I can bet on--

The people who think they have this money coming to them would sue for it. Yep. It's a dishonorable sin and they should be hissed at in finer dining venues, but they'd do it. Tie the company up in court and probably make them leave that same amount in escrow. That's where it is. AIG is leaking money, and they don't need the liability--they'd rather pay out a little than lose a lot.

I think there oughta be a law, but laws don't grow on trees--you know?

In the meantime, state and municipal workers in communities across this country are getting their own wage and benefits contracts looked at. These are even union people. Cities are looking at whether they can cut police and fire companies. People in factories are looking at lay-offs and decreased benefits. People are hurting all over.

Anyway that's my perspective--not cheerful, but ambivalent. Some of these bonuses are in the millions. How many teachers' salaries would that be? We aren't supposed to do that math. The bonuses will probably happen--

Contracts will be made differently going forward, I trust.