Quote:
Originally Posted by lookout123
They are an insurance company which means they must maintain a hefty cash reserve ratio. When things went down the shitter they had to raise capital quickly. Which do you think would be easier to get good value from, profitable business unit or one overflowing with toxic assets?
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My understanding is the particular division that caused all the trouble was so complicated, and the contracts were so convoluted, they had to "unwind" those contracts, and they apparently needed people who understood them to stick around to do. I didn't realize they eliminated healthy parts of the company though in order to do that.
As I said before, this could have been avoided if the company had just agreed to pay them the bonuses AFTER they paid back the taxpayers. It isn't right for that burden to fall on taxpayers, when they are themselves losing jobs and having to take cuts in pay, etc.