Eleven AIG workers that received retention bonuses of $1 million or more have already left the company, it was revealed today as Congress threatened to produce new taxes to claw back the $165 million payment.
Lawmakers competed yesterday to rain down the harshest criticism on AIG, which received more than $170 billion in assistance from taxpayers, after it handed out the bonuses to 400 staff at the financial products division (AIG FP) that caused its near-collapse.
A Republican Senator suggested that AIG’s executives should resign or commit ritual suicide in shame over the bonus payments, the details of which emerged at the weekend. Read on.
Now, Geithner wants AIG must pay back bonus money
Lawmakers competed yesterday to rain down the harshest criticism on AIG, which received more than $170 billion in assistance from taxpayers, after it handed out the bonuses to 400 staff at the financial products division (AIG FP) that caused its near-collapse.
A Republican Senator suggested that AIG’s executives should resign or commit ritual suicide in shame over the bonus payments, the details of which emerged at the weekend. Read on.
Now, Geithner wants AIG must pay back bonus money
(CNN) -- Insurance giant AIG will have to return to the Treasury Department the $165 million it just paid out in executive bonuses, Treasury Secretary Timothy Geithner said Tuesday in a letter to congressional leaders.
"We will impose on AIG a contractual commitment to pay the treasury from the operations of the company the amount of the retention awards just paid," Geithner wrote. "In addition, we will deduct from the $30 billion in assistance an amount equal to the amount of those payments."
That would be a double payment, essentially a $165 million penalty on AIG for issuing the bonuses.
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