AIG CEO Compares Anger At Wall Street Bonuses To The Lynching Of Black People In The South
Submitted by Michael Krieger of Liberty Blitzkrieg blog,
I’m doing God’s work.
- Goldman Sachs CEO Lloyd Blankfein in a November 2009 interviewIt’s war. It’s like when Hitler invaded Poland in 1939.
- Steve Schwarzman, Chairman and co-founder of Blackstone, on potential tax changes in 2010The uproar over bonuses was intended to stir public anger, to get everybody out there with their pitch forks and their hangman nooses, and all that–sort of like what we did in the Deep South. And I think it was just as bad and just as wrong.
- AIG CEO Robert Benmosche in a Wall Street Journal Interview this past weekend
As if you needed any more evidence of how disconnected, entitled, irrational and sociopathic the heads of financial firms in America are these days, along comes AIG’s CEO Robert Benmosche to dispel any lingering doubts. In a highly disturbing interview with the Wall Street Journal, Mr. Benmosche compares the murder of black people in the deep south based on racial prejudice and hate to the vast majority of Americans expressing disgust with the fact that Wall Street decided to suspend capitalism when it was in their best interests in order to give themselves trillions of dollars.
He actually compares an environment where the rule of law was often completely suspended to allow the murder of a disenfranchised racial group, to widespread public anger about the suspension of the rule of law to benefit the wealthiest, most connected people in the nation.
The craziest part of his statement is that if anything, the bailout of financial oligarchs to the severe detriment of the rule of law, free markets and the best interests of the vast majority of the American public is actually what is most similar to lynchings in the south. In both cases, the rule of law was suspended to benefit the powerful over the weak. This man is a dangerous sociopath, and he is precisely the type of person you get in charge when you bail out institutions that should have died.
More from the Wall Street Journal:
Mr. Benmosche on the government’s campaign against partial “bonuses” to be paid to hundreds of employees in the AIG financial-products unit as they unwound massive, ill-fated bets on mortgage bonds. He said “less than 10” employees were behind the bad trades.“That was ignorance … of the public at large, the government and other constituencies. I’ll tell you why. [Critics referred] to bonuses as above and beyond [basic compensation]. In financial markets that’s not the case. … It is core compensation.
Core compensation would have been reset in the financial industry down to more reasonable levels had there not been bailouts. That’s capitalism you crony jackass.
“Now you have these bright young people [in the financial-products unit] who had nothing to do with [the bad bets that hurt the company.] … They understand the derivatives very well; they understand the complexity. …They’re all scared. They [had made] good livings. They probably lived beyond their means. …They aren’t going to stay there for nothing.
So let them go. Again, isn’t that capitalism? What about all of the people that lost their jobs and are on food stamps now because of those “10 people” at AIG? Moreover, how many of those 10 are in prison?
The uproar over bonuses “was intended to stir public anger, to get everybody out there with their pitch forks and their hangman nooses, and all that–sort of like what we did in the Deep South [decades ago]. And I think it was just as bad and just as wrong.“We wouldn’t be here today had they not stayed and accepted … dramatically reduced pay. … They really contributed an enormous amount [to AIG’s survival] and proved to the world they are good people. It is a shame we put them through that.”
Poor babies, they had to suffer from public anger while collecting huge paychecks.
“We’re trying to find the villains [for the financial crisis]. There’s got to be a villain somewhere. The problem is that there isn’t a villain. There are villains. And they are everybody. They are the speculators in real estate. The people who flipped houses. People who lied and cheated [on mortgage applications]. Nobody did the income appraisals. … I include myself in there. I knew stuff was wrong” in the mortgage-underwriting system years before the real-estate bubble burst.
First he says there are no villains. Then he says everyone is a villain. Then he describes a small minority of the population, house flippers as villains, who by the way weren’t bailed out like Wall Street was. Plenty of people lost their homes. Bankers got record bonuses the next year. The denial and lack of perspective from these folks is mind-boggling.
Full interview here.
http://www.zerohedge.com/news/2013-09-24/congressman-calls-benmosches-head-after-lynching-comments
Congressman Calls For Benmosche's Head After "Lynching" Comments
When we pointed out AIG CEO Benmosche's somewhat disconnected-from-reality comments comparing banker-treatment to lynchings of black people in the deep south, we suspected there would be fallout. Sure enough, none other than Rep. Elijah Cummings(among the leading investigators into the 2008 excesses that led to AIG's bailout) has called for Benmosche to "resign his position as CEO immediately." Cummings stated:
“As the leading critic of AIG’s lavish spending before and after its taxpayer funded bailout - and as the son of sharecroppers who actually experienced lynchings in their communities - I find it unbelievably appalling that Mr. Benmosche equates the violent repression of the African American people with congressional efforts to prevent the waste of taxpayer dollars..."
We await the "...out of context..." retractions tomorrow...
Cummings Calls for Resignation of AIG CEO
AIG Head Equates Criticism of Corporate Bonuses with Lynching in Deep South
Washington, DC (Sept. 24, 2013)—Today, Rep. Elijah E. Cummings, Ranking Member of the House Committee on Oversight and Government Reform, issued the following statement in response to a statement by Robert Benmosche, the CEO of American International Group (AIG), asserting that criticism of AIG’s excessive bonuses during the nation’s financial crisis in 2008 “was intended to stir public anger, to get everybody out there with their pitch forks and their hangman nooses, and all that—sort of like what we did in the Deep South [decades ago]. And I think it was just as bad and just as wrong.”
Cummings stated:
“As the leading critic of AIG’s lavish spending before and after its taxpayer funded bailout—and as the son of sharecroppers who actually experienced lynchings in their communities—I find it unbelievably appalling that Mr. Benmosche equates the violent repression of the African American people with congressional efforts to prevent the waste of taxpayer dollars. If these statements are true, I believe he has demonstrated a fundamental inability to lead this modern global company in a responsible manner—a company that exists today only because it was rescued by the American taxpayers—and that he should resign his position as CEO immediately.”
Cummings, along with Rep. Henry Waxman, then-Chairman of the Oversight Committee, led an investigation in 2008 into the financial excesses that led to the government bailout of AIG. Cummings continued his work in subsequent years with then-Chairman Edolphus Towns, investigating AIG’s excessive bonuses paid for by taxpayers.
Earlier this year, AIG considered joining a $25 billion shareholder lawsuit against the government agencies that rescued the company during the financial crisis.
Good morning,
ReplyDeleteI'm sure 20 billion is still a low figure compared to the amounts their fraudulent practices brought in over the boom years, still better than nothing but I rather see them in jail. Which brings me to the AIG asshole, hope he has to resign though again not even close to any kind of real justice.
I saw where the earthquake raised a new island in the Arabian sea, someone on ZH commented that it will play hell on submarine navigation, an interesting thought indeed.
Syria still playing it smart, lowering expectations and then exceeding them.
Morning Kev - 20 billion is real money , although I want to see them actually pony up that type of moolah....
ReplyDeleteThe AIG CEO has been an a-hole starting from when he first took the job ( and went on vacation before his first day of work ) , he has been exceedingly arrogant and his comment on banker bonuses is reflective of that arrogance - but in reality , he's not going to be fired ( does Obama even comment on this ? )
I did see the piece on the new island caused by the earthquake ! Amazing - and I bet that will screw up navigation over there !
Syria and Russia playing a smart game , extending the process - meanwhile the syrian rebels are fighting one another and the so called unity is falling apart ....