AIG recieves $170 Million as taxpayer bailout!

With $170 billion received by AIG as taxpayer bailout money, the company has decided to pay around $ 165 million as bonuses to executives in the same business unit. As the news regarding the bonuses spread last week, Timothy F Geithner who is the Secretary of Treasury stated that the firm’s bonus plans are unacceptable and he wanted a renegotiation. But, the bonuses will be given since it seems that the firm is under contract to pay them.

There have been $121 million previously scheduled bonuses which were meant to be for company’s senior executives and for the rest 6400 employees. Treasury Secretary also pressured to lower the bonus going to top 50 executives last week.

It seems that government will be under touch scrutiny with the payment of so much money at a company which is battling financial collapse. The government administration isn’t happy how the bailed out taxpayer money is used by the AIG.

While on the other hand, AIG is supporting the bonuses saying that they were promised last year and can’t be cancelled now. Almost 80% of AIG is currently owned by the government.

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Posted by admin @ 15 March 2009 2 comments

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Nov 1, 2009
8:36 pm

#1 Equity release :

The same issues seem to prevail on this side of the pond. Bankers bonuses have dominated busiess news here for some days.
The Uk government and the UK taxpayers own significant proportions of several well know UK banks.
Despite the money that has been pumped into the system, governments seem unable or unwilling to tackle this matter head on. The Conservative party is more vocal on its plans to deal wth these issues should it gain power in the next genetal election which must happen before June 2010. Whether it will follow through with these ideas if it become the next government remains to be seen.
Having said that, this weekend, the Uk Government has announced plans to sell off parts of the Government controlled banks to creat three new high street retail banking companies. It appears that these will concentrate on the traditional ares of savings, current acconts and mortgages.
This has caused much surprise this side of the pond. Those companies already mentioned as candidates to run these new institutios include Tescos and our old friend Richard Branson’s Virgin Group. This promises to be one of the most interesting develpments in banking for some considerable time.
That’s if you can call banking interesting!

Nov 20, 2009
8:29 am

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