Aig Paying Out $165m In Bonuses

[Mr Lee]

Am I the only one who thinks the world has gone crazy? How would AIG have paid those contractual bonuses if they did not receive the bailout? IMO the answer is that they would not have, so how can it be allowed to pay them in light of what has happened so far. http://www.foxnews.com/politics/2009/03/14...ucture-bonuses/

[Mike S]

Just like the bail out for the auto firms ....... the first one to receive any money would be the executives in the form of bonuses ...... yes something definitely wrong with big business .........

[Markham]

Hold on, AIG posted a fourth quarter loss of $61.7 Billion, has received $170 Billion of US tax-payers' money and yet "The Treasury Department determined that the government did not have the legal authority to block the current payments by the company." So exactly who is funding the $210 Million in bonuses? An overpaid VP overcome with guilt, perhaps? No, it's the tax-payer of course and since the tax-payer is keeping the company afloat, the US Government surely has the right to determine if its funding can be paid in bonuses. Since the directors - who make such decisions - also have their snouts in the trough, they're hardly likely to stop the payments, are they.In Britain, things are now done a bit differently. Prior to the current crisis, "bonuses for failure" have been paid and rightly criticised by both the Government and the press. But all the bank bosses - whose banks have received tax-payer support - have agreed that only junior members of staff will be entitled to receive bonuses based on their performance and even those will be limited in size. But that'll be accompanied by lay-offs as the banks struggle to regain respectability and become leaner and meaner.Mark

[volstateguy]

http://edition.cnn.com/2009/POLITICS/03/18...uses/index.htmlCNN) -- 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.

[Hoz]

This one has Obama hoppin mad. (He was actually beating the podium during his speech.) Time will tell if the Treasury Dept can actually do anything.

[Markham]

http://edition.cnn.com/2009/POLITICS/03/18...uses/index.htmlCNN) -- 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.

I believe that $165M is only part of AIG's bonus payout. The total for this year will be about $450M, according to the BBC.

[Mike S]

I see one of the interesting solutions being tossed around is charging them a 90% tax on the bonus each member receives ....... but I don't know how they could do that without charging everyone else in the US the same tax for the same amount if they too receive a bonus .......

[tom_shor]

I'm sending my application to AIG today I want to be CFO. I have no degree and no experience but how could I do worse than the guys they have already. And the perks are pretty good. :D :714_full_of_crap:

[Mike S]

Well there are several reasons why they won't hire you but unfortunately I can't say here as freedom of speech has long sense departed the list of freedoms in the world ...... hahahahaha

[Mr Lee]

As Mike S said above was in the works. House passes bill taxing Wall Street bonuseshttp://www.cnn.com/2009/POLITICS/03/19/bonus.bill/index.htmlLets see if it sticks and it looks like a lot of those who received bonuses have already given them back and I am sure most will follow once they see the tax they might have to pay anyway.