Obama Moves to Block $165M AIG Bonuses

By Hercules K
Monday March 16, 2009, 2:24 pm ET

aigAmerican International Group (AIG), is planning to pay about $165 million in bonuses. Today, President Obama said at the White House he plans to explore every legal avenue to block the payments. Obama said today at the White House, “This is a corporation that finds itself in financial distress due to recklessness and greed…how do they justify this outrage to the taxpayers,”

However, blocking the payments is a very difficult challenge mainly because of existing contracts already in place between AIG and executives. Others argue failing to pay bonuses will drive the best talent to other firms or even out of the market.

AIG lost $40 billion in 2008. The Fed recently provided $173 billion (80% stake) in emergency government loans to AIG

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Write to Hercules K at [email protected]

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  • Ron

    I believe the bonus payout excesses at AIG are just the tip of the iceberg of what is happening with the other Wall Street bailouts including Bank of America. Working productive Americans are bailing out the same crooks that destroyed our economy along with 45% of the wealth in the world. Now the American taxpayers and our posterity will be forced to live a far lower standard of living with reduced prosperity and opportunities due to the accumulated national debt to fund the bailouts and once again we will pay the price.

    Washington has bailed out the banks, Wall Street & their Washington special interests and much of the cost is added to the national debt to by paid by this and future generations while real estate and investments continue to fall. I believe Washington plans to monetize the debt in future years while they tax and destroy our remaining wealth by depreciating the dollar.

    To stop this wealth attack, the Campaign to Cancel the Washington National Debt By 12/21/2012 Constitutional Amendment is beginning now in the U.S. See: http://www.facebook.com/group.php?gid=675946904...

  • barb

    FALLOUT GROWS: Those who voted for the stimulus supported the clause to protect the AIG's bonuses. Obama's Own Stimulus Bill Protects the AIG Bonuses He Now Condemns —


    http://www.butasforme.com/2009/03/17/obamas-sti…>

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