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Monday, March 16, 2009

Can you find the typo in this paragraph?

From this NYT article:
The trustees have already rankled a big A.I.G. shareholder. The American Federation of State, County and Municipal Employees pension plan, which owns 18,000 shares of A.I.G. common stock, had put forward a shareholder proposal on executive pay that it hoped would be put to a vote at the company’s annual meeting in May.
18,000 shares makes you a big shareholder? At today's price ($0.83/share), the 18,000 shares is worth a little less than $15,000.

The story reports that many CDSs were paid off even without the underlying assets going into default. That sounds just a little fishy. However, the political outrage concerning AIG is laughable given that the Congress has just spent about $1.3 trillion without so much as reading the legislation that authorized such spending. The political screaming seems almost too contrived, especially when the bonuses haven't been identified. $165m sounds like so much money - which it would be if it went to one person, which most assuredly is not the case.

How many $10,000 bonuses would the $165m represent? Oh, about 16,500 - is that too high a number of bonuses? Who knows. My point is that we don't know how many bonuses are represented in the $165m, nor who stands to get the bonuses, and how much the maximum and average bonuses are or would be.

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The 418 individual bonuses ranged from $1,000 to $6.4 million, with 298 receiving more than $100,000, according to information obtained through a subpoena by New York state Attorney General Andrew M. Cuomo.
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