Allison Kilkenny: Unreported

The Sanctity of AIG Contracts

Posted in Economy, politics by allisonkilkenny on March 16, 2009

blog_aig_cartoon

Glenn Greenwald has written an excellent piece about the AIG bonuses, and the contracts guaranteeing those bonuses that are apparently too sacred and holy to break. Of course, our government stood idly by and let the Big Three shatter all kinds of contracts with the UAW, and nary a word was uttered about the holiness of those contracts. In America, the only contracts that matter are the ones belonging to billionaire CEOs.

An excerpt from Greenwald’s article:

Apparently, the supreme sanctity of employment contracts applies only to some types of employees but not others. Either way, the Obama administration’s claim that nothing could be done about the AIG bonuses because AIG has solid, sacred contractual commitments to pay them is, for so many reasons, absurd on its face.

As any lawyer knows, there are few things more common – or easier — than finding legal arguments that call into question the meaning and validity of contracts. Every day, commercial courts are filled with litigations between parties to seemingly clear-cut agreements.  Particularly in circumstances as extreme as these, there are a litany of arguments and legal strategies that any lawyer would immediately recognize to bestow AIG with leverage either to be able to avoid these sleazy payments or force substantial concessions.

Read the rest here.

%d bloggers like this: