By the $160 million dollars that AIG paid out in bonus money to their top execs.
But: Congress put NO strings on the money.
Who is the screw up? The whole sub prime mortgage mess came about because Congress and Barney Frank in particular, kept saying that Franny and Freddie were in good shape. In other words, they failed to regulate. Just as they failed to regulate the money paid to AIG.
The folks at AIG took the money with no strings attached and they spent the money the way they wanted to spend it. Maybe not with any political wisdom but they certainly broke no law.
The hue and cry is now that Congress should set the pay scales for the banking and mortgage industries. But do you really want that? Once they get their fat little toes in the door to set wages, they may take it upon themselves to say that you are making too much money, and set your wages. Wages should be set by the market NOT by Congress.
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