Friday, March 27, 2009 | 2:08 a.m.
Americans who have lost their jobs, their homes or who are on the brink of financial ruin have every right to be upset with Wall Street. Their anger is not simply due to the fact that many financial operatives who were responsible for today’s economic mess made off unscathed with millions of dollars.
It is also because there has been virtually nothing resembling contrition from these people. All we are hearing is a lot of whining from Wall Street types who believe they have been wrongfully criticized by the public.
It’s time to give that whining a rest.
In an op-ed column published Wednesday by The New York Times, an executive vice president of the American International Group’s financial products unit defended many of his co-workers as he submitted his letter of resignation. The author, Jake DeSantis, had been one of the recipients of the controversial $165 million in AIG bonuses. His bonus was $742,006 after taxes, which he has agreed to donate to charity.
But DeSantis also railed against Congress and the media for their outrage over the bonuses and blamed AIG CEO Edward Liddy for failing to stand up for his employees in the face of this criticism. Liddy, whose insurance company is getting more than $182 billion in federal bailout money to stay in business, dared to suggest last week that employees who made $100,000 or more in bonuses should return at least half of those payments.
DeSantis didn’t like that because he said his AIG unit made profits and wasn’t responsible for the risky derivative activity that led to the company’s downfall. But that would be like giving a bonus to the interior decorator of the Titanic. A company that receives bailouts shouldn’t be handing out bonuses.
Yet the whining goes on, as it did Tuesday at a conference hosted by The Wall Street Journal. Finance executives there also complained about anti-Wall Street rhetoric in Washington.
For a dose of reality, we suggest they come down from their ivory towers and spend more time on Main Street.
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