In the first quarter of 2008, prior management took significant retention steps at AIG Financial Products. ... Some of these payments are coming due on March 15, and, quite frankly, AIG's hands are tied.

They knew the ship was sinking and the rats decided to leave unless millions more were paid to them - and so these millions were offered and now that the government has bailed out the company the millions must still be paid. Basically, they set up the system in advance so that it would continue to enrich them after it failed.

Outside counsel has advised that these are legal, binding obligations of AIG, and there are serious legal, as well as business, consequences for not paying.

Best argument yet for nationalization. Large government bailouts should, at least, require filing some kind of bankruptcy where a court can come in an make contracts void.

Looting AIG