AIG bonuses 'higher than thought'

Discussion in 'OFF-Topic / Misc.' started by seesul, Mar 21, 2009.

  1. seesul

    seesul Active Member

    Joined:
    Jun 3, 2006
    Messages:
    3,519
    Likes Received:
    8
    Trophy Points:
    38
    Location:
    Zlin, Czech Republic
    Home Page:
    If it´s a truth...no comment...

    US insurance giant AIG paid out a total of $218m (£150m) in bonuses after accepting bail-out cash, according to a senior US official.

    Documents obtained by Connecticut's attorney general showed AIG's payout was $53m, or 32%, more than was previously estimated.

    Papers obtained by subpoena showed 73 people got more than $1m each while five received more than $4m.

    The US has rescued AIG with a $170bn bail-out package since September 2008.

    But revelations about the size of bonus payments made by the organisation since the bail-out was agreed have sparked a furious reaction among US lawmakers and the general public.

    'Distasteful'

    For much of the week the total amount AIG paid out in bonuses was reported at $165m.

    But documents obtained by Richard Blumenthal, Attorney General of Connecticut, now appear to raise that figure by some 32%.

    US lawmakers vote for bonus tax
    AIG chief asks for bonuses back

    Connecticut was among 19 states demanding that AIG reveal details of bonuses paid to executives, in an effort to begin recovering the funds.

    AIG has made no comment on Mr Blumenthal's findings.

    But Mr Blumenthal said on Saturday that large bonuses were "showered like confetti" on AIG employees.

    He said the newly-revealed number would "further fuel the justified anger and revulsion that people feel", and he planned to ask AIG bosses to explain the discrepancies in bonus figures, AP reported.

    "Unless the number can be explained, it will undercut any lingering rationale the company may have for these unjustified payments," Mr Blumenthal said.

    Earlier this week US President Barack Obama described the bonus payments as an "outrage", before state legal figures and congressmen also weighed in.

    Even AIG boss Edward Liddy - who underwent questioning by a congressional committee on the issue - has described them as "distasteful".

    Reports from the US say that AIG executives are now living in fear of a violent public backlash.

    Many are reported to have received death threats and have been advised to take extra security precautions even in areas around their homes.

    Protesters are expected to drive past executives' homes on Saturday in an attempt to deliver letters highlighting the plight of ordinary families during the current recession.

    BBC NEWS | Business | AIG bonuses 'higher than thought'
     
  2. ccheese

    ccheese Member In Perpetuity
    Staff Member Moderator

    Joined:
    Jul 10, 2007
    Messages:
    12,669
    Likes Received:
    96
    Trophy Points:
    48
    Occupation:
    R E T I R E D !!
    Location:
    Virginia Beach, Va.
    At first it was said that the bonuses were paid for "retention", but it's been
    found that over 50 who got big bonuses have left the company. AIG is at a
    loss to explain that.

    There's talk of a 100% tax on the bonuses, or other legislation to force them
    to return the bonuses. George Stephanopolis says that won't happen.

    Charles
     
  3. evangilder

    evangilder "Shooter"
    Staff Member Administrator

    Joined:
    Sep 17, 2004
    Messages:
    19,419
    Likes Received:
    137
    Trophy Points:
    63
    Occupation:
    Network Engineer/Photographer
    Location:
    Moorpark, CA
    Home Page:
    What is even worse is that some of the companies receiving bailout money owe back taxes too! So they really are getting money for nothing.
     
  4. Amsel

    Amsel Active Member

    Joined:
    Jul 15, 2008
    Messages:
    1,857
    Likes Received:
    5
    Trophy Points:
    38
    Location:
    Texas
    "Senator Barack Obama received a $101,332 bonus from American International Group in the form of political contributions according to Opensecrets.org. The two biggest Congressional recipients of bonuses from the A.I.G. are - Senators Chris Dodd and Senator Barack Obama.

    The A.I.G. Financial Products affiliate of A.I.G. gave out $136,928, the most of any AIG affiliate, in the 2008 cycle. I would note that A.I.G.’s financial products division is the unit that wrote trillions of dollars’ worth of credit-default swaps and "misjudged" the risk."
     
Loading...

Share This Page