Skip to main content

AIG Traders Who Nearly Took Down Global Economy Want $100 Million For Job (Well?) Done

Seems reasonable.
  • Author:
  • Updated:
    Original:
That's Sisyphus, right? By David Shankbone (Own work) [CC BY 3.0], via Wikimedia Commons

via Wikimedia Commons

Remember AIG? Li'l insurer that required a 12-figure bailout by the U.S. government and invoked the rage of mild-mannered college professor in a Federal Reserve Chairman's body Ben Bernanke? The guys and girls in the unit that f*cked up the most out of anyone at the company are in court today over the matter of backpay they believed they're owed. $100 million to be exact and they'd like it in small, unmarked bills. And be quick about it- they've waited long enough and have likely deferred dreams of using the money as seed capital for new economy-torpedoing financial products.

American International Group Inc. was sued by former staff who say they were denied $100 million in bonuses amid public outrage over derivative trades that crippled the insurer and threatened the stability of global financial markets. Details of the U.K. lawsuit, which was filed in 2014, emerged at a London court hearing Friday. The 23 traders, analysts and managers, who worked at a subsidiary of AIG Financial Products Corp., were denied deferred compensation because of “significant media and political pressure” resulting from the U.S. government’s rescue deal, according to documents their lawyers submitted for the preliminary hearing. AIG’s Financial Products unit almost brought down the company with money-losing derivative bets backing subprime mortgages. The U.S. saved AIG in a 2008 rescue that then-Federal Reserve Chairman Ben S. Bernanke said made him “more angry” than any other measure the government took to counter the financial crisis. The bailout swelled to $182.3 billion, and public ire intensified after the company committed to paying hundreds of millions of dollars in retention awards to keep AIGFP staff so they could help unwind trades.

AIG Sued for $100 Million in Bonuses by Ex-Derivatives Staff [Bloomberg]

Related

Hank Greenberg Wins AIG Case, Snowball Does Not Get A New Pair Of Shoes

A judge ruled in Greenberg's favor but not in the monetary sense.

Things AIG Employees Say: “Make sure you grab a bite to eat before this one does! He’s been known to clean out a Danish platter!"

What were AIG employees doing in April 2008? Carelessly writing CDS on enormous quantities of mortgage-backed securities and (allegedly) laying the groundwork for being sued over "racist [and sizeist?] taunts," apparently. An obese black lawyer filed a federal lawsuit yesterday against insurance giant AIG and an ex-supervisor, saying his white boss yelled out “Hey! Hey! Hey! It’s Fat Albert!” and other racist taunts. Earl Brown, 43, an Ivy league-educated lawyer, claimed in the civil-rights suit that the ex-boss, John Hornbostel, 49, peppered him with racist remarks and cruel jokes about his weight for years before he was canned without cause. “Make sure you grab a bite to eat before this one does! He’s been known to clean out a Danish platter,” Hornbostel yelled about Brown during a meeting in April 2008, the suit claims. Hornbostel then allegedly walked away humming the tune to the “Fat Albert and the Cosby Kids” animated TV show. Hornbostel seems to have ended up at a hedge fund post-AIG. It's unclear if he's tried out any new material on his new colleagues. Obese lawyer sues supervisor and AIG for ‘Fat Albert’ insults [NYP via ATL]