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WASHINGTON (AP) - President Barack Obama declared Monday that insurance giant American International Group is in financial straits because of "recklessness and greed" and said he intends to stop it from paying out millions in executive bonuses.
"It's hard to understand how derivative traders at AIG warranted any bonuses, much less $165 million in extra pay," Obama said at the outset of an appearance to announce help for small businesses hurt by the deep recession.
American International Group Inc's payment of $165 million in bonuses is an "outrage" and ordered the treasury secretary to take all legal measures to block them.
Behind the scenes, Mr. Geithner was the point person for weeks of sleep-deprived Bailout Weekends. It was Mr. Geithner, not Mr. Paulson, for example, who put together the original rescue plan for the American International Group.
AIG told Mr Cuomo yesterday that it made the payouts last Friday but did not supply the names of the recipients.
Originally posted by anachryon
Originally posted by BlasteR
It's actually alot more than $120 B..
They recieved about $170 Billion in bailout money
They are giving out $165 Billion in bonuses right after receiving said bailout money.
Don't confuse million and billion. They received $170,000,000,000 ($170 billion) in bailout money, and they're apparently paying $450,000,000 ($450 million) in bonuses.
Disgustingly enough, the bonus amount is approximately (if I did my math right here) one quarter of one percent of the total government bailout.
It's beginning to look like American International Group (NYSE: AIG), the largest U.S. insurer, will file for bankruptcy possibly today or tomorrow. What could keep it from filing is a $75 billion raise in capital from the remaining investment banks. But thanks to a $14 billion margin call on its Credit Default Swaps (CDSs) resulting from S&P's downgrade of its credit rating, this capital raise is unlikely to happen.
Would you support a special tax on AIG executives to recoup bonus money paid to them?
Yes 82% 231430
No 18% 49145
Total Votes: 280575