Don't make hedge funds pay for the AIG flap


By Michelle Celarier

Populist rage over the $165 million in bonuses for American International Group executives had many Wall Street bankers trembling last month. Of course, few argued that the AIG execs deserved to be paid for essentially bankrupting the company - that was beside the point. Contracts are essential to our society, and not honoring them would destroy confidence, the argument went. That may be a defensible legal position, but then again, contracts are renegotiated all the time, especially in times of financial duress. It's a shame force majeure couldn't be applied here.

Despite the fact that no hedge