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| Latest Bailout Just in Time for AIG Bonuses! |
| 2009-03-15 |
| The American International Group, which has received more than $170 billion in taxpayer bailout money from the Treasury and Federal Reserve, plans to pay about $165 million in bonuses by Sunday to executives in the same business unit that brought the company to the brink of collapse last year. Word of the bonuses last week stirred such deep consternation inside the Obama administration that Treasury Secretary Timothy F. Geithner told the firm they were unacceptable and demanded they be renegotiated, a senior administration official said. But the bonuses will go forward because lawyers said the firm was contractually obligated to pay them. The payments to A.I.G.'s financial products unit are in addition to $121 million in previously scheduled bonuses for the company's senior executives and 6,400 employees across the sprawling corporation. Mr. Geithner last week pressured A.I.G. to cut the $9.6 million going to the top 50 executives in half and tie the rest to performance. |
| Posted by:Cornsilk Blondie |
| #5 was there not anything in the contract that said if you run the buisness into the ground you don't get a bonus? |
| Posted by: rabid whitetail 2009-03-15 17:54 |
| #4 "But the bonuses will go forward because lawyers said the firm was contractually obligated to pay them." which is inapplicable to the Obamar's proposal to have judges rewrite bad mortgage contracts to lower the principal owed, right? |
| Posted by: Frank G 2009-03-15 15:31 |
| #3 "But the bonuses will go forward because lawyers said the firm was contractually obligated to pay them." Simple solution shoot the lawyers FIRST. |
| Posted by: Cyber Sarge 2009-03-15 15:16 |
| #2 Ima sure that AIG is quaking in their boots from Geithner the Meek's angry pronouncements. AIG greased many the palm in congress, as well as the Big O. Since congress does not care what we, the taxpaying public think, they figure that this is a tempest in a teapot. So it us up to the American public to raise enough hell to do something. Bottom line, AIG senior executives get bonuses, and congress passes out money to its cronies. |
| Posted by: Alaska Paul 2009-03-15 14:59 |
| #1 > But the bonuses will go forward because lawyers said the firm was contractually obligated to pay them. Not if their bankrupt... The company should be wound down in administration. |
| Posted by: Bright Pebbles the flatulent 2009-03-15 12:26 |