Taking Apart Jake DeSantis' Letter

Jake DeSantis explaining why he feels entitled to a $740K bonus (after tax!) rings a bit hollow. This article takes it apart pretty well. Basically he tells DeSantis:

1. There are only 400 employees in the AIGFP, with two offices. The statement you knew nothing rings hollow, because with that much money flying around, people talk about how it was made ($3.5B in the last 7 years doled out to those 400 employees).
2. If you did know nothing, there is no reason to pay you $1MM to unwind these complex deals, which is supposedly why you are getting the big bonus.
3. You analogize that your plumbing work was ruined by an electrician that burned the house down. The plumber should still get paid. Not if they work for the same company.

I wish the government just let them fail, and we could avoid this. A capitalist can't whine about government messing with the free market when he is getting a bailout. Further, the AIG contagion effect is based on a domino theory that I do not buy. If you take out a bookie, don't be scared by notional obligations because they cancel out.

Comments

[Christopher...:]

Ditto

Mar 30 06:40 AM

[xrjx:]

He didn't say he knew nothing--he stated he was not responsible for the CDS portfolio, and he wasn't. Frankly, you'd be a bit pissed too if you worked 16 hour days cleaning up someone else's mess and were then told at the end of the year you weren't going to get paid.

It's difficult for me not to see this situation as nothing more than mobs and government thugs robbing these people at gun point. They had a contract, they didn't even attempt to renegotiate it. This was simply an attempt at expropriation at its finest.

All of you supporting this activity will regret it--the exodus of intelligent people has begun already. Who do you think you're going to get to work on unwinding these portfolios? The one-off nature of these contracts requires a level of sophistication that IS hard to come by, in spite of the wall street layoffs. Look to see significant increases in losses as a result and a lesser return to the taxpayers. Congratulations--you all will be so proud of yourselves having done such a fine job of cutting off your noses to spite your faces.

Mar 30 08:13 AM

[xrjx:]

With regards to your link--you're going to a website called 'the Smirking Chimp' for your info? Jeez, you could've done a little bit more homework and come up with a better article. How about an article on the overwhelming sense of entitlement coming, not from those 'rich' people, but from all those people who say people making more than them should pay their 'fair' share?

Mar 30 08:17 AM

[wakeup call:]

If the government wanted to approach the retention bonus rationally it should have looked at each contract and determined if the individual had breached his/her obligations or exhibited gross negligence or willful misconduct. But instead it approached it from the standpoint of tossing out contract law. Contract law is one of those issues that had always separated the United States from many other countries like China and Russia. When you have people like Cuomo, Rangell, Pellosi et al wanting to toss contract law out the window we all need to look at whether this is or is not the US where the legal system either works or we all lose. Having lawyers advocating the demise of our legal system is simply unacceptable.

Mar 30 08:57 AM

[raytayzmd:]

...to me it doesn't matter what he knew or when he knew it...the company is bankrupt!...bankrupt means they have NO MONEY for bonuses...federal money is simply to keep the company out of bankruptcy court...how much of a bonus would a bankruptcy judge allow him?...as I recall, creditors get paid FIRST and then shareholders get what's left -- usually nothing, of course...but all employees get are PINK SLIPS!...DeSantis just needs to get into reality mode!

Mar 30 09:15 AM

[jeeper:]

DeSantis = another master of the universe blubbering in self pity. Sheesh. You just can't make this stuff up.

Mar 30 10:01 AM

[reality chk:]

DeSantis has a potential to be a great spokesman in Hollywood for ShamWows and snake oil.

Mar 30 10:19 AM

[dahammer:]

the plumber analogy is perfect, the plumber was assured on several occasions, even months after the house burned down that he would still get paid.

Apr 13 02:48 PM