Blogging after long time (I guess after a month or so) on quite unusual topic.

AIG’s $165 million bonus to its Financial Product division has grabbed attention everywhere and of every US media. The public furor and outcry of the poorly managed Wall Street bail out by former administration and current Obama administration has been clearly been louder from AIG bonus saga. And to limit this outcry Congress just passed a bill to impose massive 90% tax on that bonus and this will also apply to all other bailed out banks receiving fund under TARP.

I wonder what the hell were these lawmakers and politicians doing when they were bailing out AIG few months ago. AIG was bailed out under Bush administration spear headed by then New York Fed Chariman and current Treasury Timothy Geithner under supervision of Federal Reserve and then treasury Hank Paulson. All these excessive bonus issues (for which Wall Street has been widely criticized for) should have been managed during that time.

I think 90% taxation by lawmakers is just an act of showing the public that they are worried about tax payer’s money and ultimately hiding the whole bail out failure. I think most of the people will accept that the bailed out supervised by Hank Paulson was severely mismanaged (Oh I just forget he is also from that same Wall Street mess named Goldman Sachs) and I don’t know why but I really don’t have any trust with the current Treasury’s plan (they have not proposed any significant plan either). And wait, this bonus issue certainly does not seem to cool so soon especially when yet another bailed out bank, Citigroup is also planning to give big bonuses (cetainly not a good move during so much public outcry).

I thought all these massive mismanagement and shameful politics happen only in developing and under-developed countries but now I am convinced that all politicians all over are somewhat same, perfect blame gamers. I wish all mighty give some sensible logic to both politicians and Wall Street losers.

Some interesting AIG articles:

• How AIG Became Too Big to Fail

• The Problem With Flogging A.I.G.