American International Group (A.I.G.) is prepping to pay about $100 million in bonuses to execs in the same unit that brought the company to its financial knees last year. All this while taking $170 billion in bailout money from the Treasury and Federal Reserve!
Meanwhile, my friends and I sit on the edge of personal and professional bankruptcy. All directly resulting from the unsavory practices of institutions like A.I.G.
Obama administration Treasury Secretary Timothy F. Geithner called A.I.G.’s government appointed chairman Edward M. Liddy and asked the company to renegotiate those outrageous bonuses. But Liddy insists that A.I.G. is contractually obligated to pay them. According to Liddy:
“Needless to say, in the current circumstances, I do not like these arrangements and find it distasteful and difficult to recommend to you that we must proceed with them…
We cannot attract and retain the best and the brightest talent to lead and staff the A.I.G. businesses — which are now being operated principally on behalf of American taxpayers — if employees believe their compensation is subject to continued and arbitrary adjustment by the U.S. Treasury.”
Out of all the financial institutions that have been bailed out using taxpayer dollars, none have received more than A.I.G.
Addendum: It looks like the grand total in bonuses given out by A.I.G. today was $165 million.