More Complex Than I Care About, But...

Details on the AIG bonus issue. A point worth thinking about:

Joe Cassano, who ultimately emerged as the leader of AIG FP after several rounds of managerial changes, was one of several contenders for the top post. His rivals, some of whom may have had serious disagreements with his personal style and professional judgments, could elect to stay on in senior posts at the satellite offices in Tokyo, Hong Kong, Wilton, Paris, and wherever, or they could leave for high paying jobs at hedge funds or other investment banks. Some stayed.

In the spring of 2008 it was clear that the Cassano-led charge into credit derivatives was an impending disaster and Cassano was on the way out. Would it better for the AIG board to (a) sack Cassano and let his disgruntled rivals quit for jobs at other firms, or (b) sack Cassano and guarantee a bonus pool to those who agreed to stay on and attempt to pick up the pieces?

The idea that the only correct answer is (a) is absurd. Now, in attempting to pick up the pieces the AIG board may have erred in not fully separating the wheat from the chaff; I have no doubt that some of the people collecting guaranteed bonuses were part of the Cassano problem, just as I am sure that many were not. That said, the firm is down to 370 employees from 450 in the spring of 2008 (again, from the letter), so some sort of right-sizing is happening. As a political matter Republicans would be insane to rise up in defense of this people. However, folks interested in a post-partisan understanding of the issues might want to reflect before condemning.

Every news outlet and station is talking about this nonsense. Stoking the flames. Pissing people off. Make them angry and self pitying. Yes - this was the hope and change I was hoping for. Jesus.