A.I.G. Blowback
Blowback is a term coined by the CIA to describe the unintended consequences of military operations. Virtually every covert operation suffers from some degree of blowback - it is simply impossible to understand in advance the innumerable implications of certain courses of action.
Some of those at A.I.G. are now experiencing a situation best described as political blowback. The federal government, ‘outraged’ at the bonuses paid to a number of executives, is taking quick, decisive, and more than likely imprudent actions to remedy the situation. Yet the consequences of those actions are unclear at best.
Jake DeSantis is an EVP at A.I.G.’s financial services group, the very group that brought the company to its knees. Surely, then, he deserves all the anger currently directed at their group, right?
In short, no. There are innocent people caught in this crossfire. This Tuesday, he sent in his resignation to the current CEO, Edward Liddy:
…I am proud of everything I have done for the commodity and equity divisions of A.I.G.-F.P. I was in no way involved in — or responsible for — the credit default swap transactions that have hamstrung A.I.G. [emphasis mine] Nor were more than a handful of the 400 current employees of A.I.G.-F.P. Most of those responsible have left the company and have conspicuously escaped the public outrage
…I take this action after 11 years of dedicated, honorable service to A.I.G. I can no longer effectively perform my duties in this dysfunctional environment, nor am I being paid to do so. Like you, I was asked to work for an annual salary of $1, and I agreed out of a sense of duty to the company and to the public officials who have come to its aid. Having now been let down by both, I can no longer justify spending 10, 12, 14 hours a day away from my family for the benefit of those who have let me down.
You and I have never met or spoken to each other, so I’d like to tell you about myself. I was raised by schoolteachers working multiple jobs in a world of closing steel mills. My hard work earned me acceptance to M.I.T., and the institute’s generous financial aid enabled me to attend. I had fulfilled my American dream.
You can read the letter in it’s entirety here.
