Given the anger towards anyone involved with AIG (AIG) and the fact that there seems to be little upside for anyone involved with the firm, does it make sense that CEO Ed Liddy would stay at the firm?
Seriously, the guy was a retired 63-year old, and now he’s making $1 per year as the CEO of Evil Inc. Why?
We know if we were him, we’d just say ‘screw it’ and walk away.
CNBC’s Melissa Francis, writing at the National Review (right-winger posing as an unbiased journalist alert!) had some thoughts this week on his predicament:
Without question, Liddy is not the personification of greed, as the weak-minded would have you believe. Rather, he is the perfect symbol of the unintended consequences of government “assistance.”
When the government forked over $165 billion of taxpayer money to AIG last year, it figured, correctly, that it now owned the company. The problem, however, is that the people we’ve elected to run the government can barely manage the books of their own over-leveraged and under-performing organisation.
Politicians have a flair for flare, but not for finance. So their first managerial instinct is to lock Liddy’s head and wrists in a revolutionary-era stockade and lash his backside for bonuses he didn’t initiate.
The price of all this theatre is TALF. Quietly across town, while Liddy was taking his public lashings, the Fed’s Term Asset-Backed Securities Loan Facility was trying to get off the ground
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