Quote Originally Posted by Edwina's Secretary View Post
One of my issues with the situation is with the use of the word "bonus." If it is a contractual obligation (as has been represented) then it is not a bonus. The phrase "guaranteed bonus" is an oxymoron. It is not a bonus if it is guaranteed. A bonus is something extra - usually based on results or some unknown (at the time the potential bonus is established)outcome.

This imprecise use of the word "bonus" only further confuses the situation.
I agree. AIG knew it was in big trouble long before the rest of us heard about it. Why on earth would they write contracts guarenteeing big bonuses when they knew they were sinking? Can they not spell the word DUMB?

Of course, the Bush administration didn't help anything by giving them the first bailout with no restrictions.