Off With the Bankers

A.I.G. can hardly claim that its generous bonuses attract the best and the brightest. So instead, it defends the payments by arguing they’re needed to retain employees who are crucial for winding down transactions that are “difficult to understand and manage.” In other words, only the people who stuck the knife into the American International Group can neatly extract it for a decent burial.

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Posted by Fabrice Florin

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Fabrice Florin
4.0
by Fabrice Florin - Mar. 20, 2009

Insightful observations about the A.I.G. bonuses from Simon Johnson, a professor at the M.I.T. Sloan School of Management and a former chief economist at the International Monetary Fund. The author argues convincingly that "when insiders have broken a financial institution, the most direct remedy is to kick them out."

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