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WASHINGTON - The government will deduct $165 million in proposed aid to bailed-out American International Group Inc. to recoup the cost of bonuses paid to employees of the insurance giant last week, Treasury Secretary Timothy F. Geithner said on Tuesday.
In a letter sent to congressional leaders, Geithner said he persuaded AIG Chief Executive Edward M. Liddy last week to scrap hundreds of millions of dollars in future payments after determining that the bonuses already granted would be "legally difficult to prevent."
Geithner said AIG would be required to pay the $165 million from corporate operating funds as part of the final terms for a previously announced $30-billion line of credit from the government. In addition, the credit line will be reduced by the same amount.
The action came amid public outrage over the bonus payments made last week to employees who created and sold the risky financial instruments that were largely responsible for bringing the New York conglomerate to its knees and helping to wreak havoc in world financial markets.
"There is ire that almost verges ... on hate," said Sen. Dianne Feinstein, D-Calif.
The employees still would keep their bonuses. Seeking to change that, Congress is stepping in with proposals to rip the funds from them by taxing the extra income so much that they would be left with little or nothing.
Originally posted by bringthelight
SEE!!! If people get fed up enough and speak out, the PTB have to act! ...
If more people are informed, the more people will be outraged, and then comes change.