Monday, March 16, 2009

Empire strikes back -- U.S. plans to recoup AIG bonuses

Just days after the revelation that a major insurer that got $180 billion in federal bailout money intended to award $165 million in employee bonuses, the U.S. Treasury Department said Monday that it would try to recoup the money, according to the Reuters international news service. The Treasury Department's action came after President Barack Obama said he was "outraged" by the bonuses given by American International Group (AIG) and would seek to block them. In remarks at the White House, Obama said he was "choked up with anger" over the bonus payments. "How do they justify this outrage to the taxpayers who are keeping the company afloat?," he said. AIG said on Sunday that it was contractually obligated to make the $165 million in awards for 2008, but would revamp its bonus system under new chief executive Edward Liddy. The 2008 bonuses are the last installment of $450 million in bonus money agreed to by former CEO Martin Sullivan. Bonuses totalling $55 million were paid in December, Reuters said.

1 comment:

Anonymous said...

Very similar.