Law Professor Cornelius Hurley, director of the Morin Center for Banking and Financial Law and former counsel to the Fed Board of Governors, says taxpayer-owned insurance giant AIG should just not pay those executive bonuses and let them sue.
“Since the AIG bailout in September, the moribund company has paid out $120B to counterparties and others. The cynic in me says that there is a very good chance that a year from now the AIG bonus recipients will be employees of the AIG counterparties and that maybe, just maybe, these financial wizards did not drive the hardest bargain in settling with the counterparties in exchange for their future employment prospects.
“So how to get out of paying the bonuses? Just don’t pay them, let them sue for their bonuses knowing there’s going to be a massive counterclaim and a reevaluation of their performance over that last year or more.”
Contact Cornelius Hurley, 617-353-5427, firstname.lastname@example.org