http://www.businessweek.com/ap/financialnews/D96VCUQG0.htm?chan=top+news_top+news+index+-+temp_news+%2B+analysis
First of all, I totally do not understand what this company is trying to do.
They know they are under government's support.
And that support is not something small.
It is huge. How much did they recieve in bailout? more than 150 billion dollars.
Now, they are proposing a bonus payout to the executives which totals to $165million.
It is an insurance company. Any risk management?
Maybe for short term yes. Are they expecting the government to bail them out over and over again? I would think that by carefully making decisions they would avoid this type of payouts.
It can destroy the company's reputation, if it did not already.
They must understand that they are using the tax payers money for their own wrongdoing so that they can be in the line of business.
It may not involve any risk management techniques we learn in RMI 4350.
But it is the most basic and easiest to figure out.
This company must redesign their decisions so that it can bring their reputation back eventhough it may take forever.
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