David Kirkpatrick

March 15, 2009

AIG is wasting taxpayer money

Filed under: Business, Politics — Tags: , , , — David Kirkpatrick @ 6:48 pm

Corporate socialism must be stopped. Legal obligations for the bonus money? The company wouldn’t even exist if taxpayer money wasn’t handed to it.

From the link:

Obama administration officials and lawmakers lambasted plans by American International Group Inc., the insurer rescued by the government, to dole out $1 billion in bonuses and retention pay to employees.

Lawrence Summers, director of the White House National Economic Council, called the payments “outrageous” in an interview on ABC’s “This Week” program. AIG is “abusing the system,” Barney Frank, the Massachusetts Democrat who heads the House Financial Services Committee, told “Fox News Sunday.”

AIG, which has received $170 billion in taxpayer money, succumbed to demands from the U.S. Treasury to scale back the payments. AIG agreed to reduce some retention payments in 2009 by 30 percent and tie bonuses to the company’s recovery. The New York-based insurer still plans to hand out about $165 million on March 15 because of legally binding contracts, according to a person briefed on the matter.

Update 3/16/09 —  Looks like the Obama administration is going to fight the bonuses taken from taxpayer money.

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2 Comments »

  1. Makes you think letting AIG fail might be a good first step to cleaning up corporate finances as well as ethics.

    Their business plan is an illusion anyway, how can you realistically insure the investments of practically the entire banking industry?

    Comment by wwelvaert — March 15, 2009 @ 6:56 pm

  2. This post has been linked for the HOT5 Daily 3/16/2009, at The Unreligious Right

    Comment by UNRR — March 16, 2009 @ 5:47 am


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