Is AIGs Robert Benmosche A Hero Of Capitalism?
Last night on CNBC’s Kudlow Report, I found myself in the unusual position of defending bureaucratic compensation controls and the Obama Administration’s pay czar against Larry Kudlow and syndicated columnist Jerry Bowyer, both of whom wanted to celebrate AIG CEO Robert Benmosche’s willingness to buck the Beltway. I’ll admit that Kudlow and Bowyer hit on something important. It is edifying to see a chief executive stand up against the politicians and bureaucrats. Too many seem spineless these days, too willing to take orders from Washington. Was there anything Ken Lewis wouldn’t have done if instructed by Hank Paulson, Tim Geithner and Ben Bernanke? Where is John Galt when you need him? But I still think this is short-sighted. AIG is not a private company. It has become a ward of the state, an arm of the US government. The bailout of AIG was never intended to give AIG a “lifeline.” It wasn’t about AIG at all. It was, instead, about preventing the disorderly dissolution of a company tha
