Another CEO makes a blunder.
Marketwatch reports that American International Group AIG CEO Robert Benmosche, while assuring us that 'too big to fail' has been resolved, said he doesn’t get the national outrage about AIG’s big bonuses (paid immediately post the firm's bailout), and compares the public outrage to that of a lynch mob in the South.
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', he said.
The comments in the candid conversation with the colourful CEO was not part of the original story appearing in The Wall Street Journal on the weekend and appeared in a blog on Monday.
In justifying the bonuses, Benmosche says there are villains and there are villains:
'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).
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