The U.S. Treasury ordered American International Group Inc., the insurer saved from collapse by taxpayer bailouts, to overhaul plans to give out multimillion- dollar bonuses and repay the government for some 2008 payments, according to a person briefed on the matter.
Treasury Secretary Timothy Geithner telephoned Chief Executive Officer Edward Liddy on March 11 to demand changes to AIG’s bonus payments, an administration official said separately.
AIG was rescued by the government in September after its bets in the derivatives market threatened to bankrupt the insurer.
This is sick. Why in the world are we helping these companies that keep sending millions to people who do not know how to run a company? Furthermore, I fear this is just the tip of the iceberg--there are so many ways these funds are hurting 'average Joes' but benefiting those in high places. Look what Enterprise rent-a-car did to get bailout funds:
ReplyDeletehttp://www.butasforme.com/2009/02/25/alert-enterprise-rent-a-car-may-have-fired-employees-as-fake-evidence-when-lobbing-for-bailout-money/