Record losses – AIG’s fat cat payout

Over 400 fat cat bosses in AIG insurance company are being rewarded with one hundred and fifty million dollar bonuses in the US, despite stern disapproval from the President himself and the Secretary General.

AIG received three separate bail out contributions from the US government totalling one hundred and seventy billion dollars, after reporting the worst financial results of any trading US company ever.

The US government was concerned over the impact that the financial collapse of this company would have on the US economy, and allowed the company to benefit from its financial stimulus package on three separate occasions.

AIG say that they have legal obligations to pay out the bonuses to its staff, despite the fact they were responsible for the worst results ever posted in US history. However the New York State Attorney General is investigating whether these claims are true and if so, whether these payments can be deferred.

The US government now owns eighty percent of AIG all bought with tax payer’s money so these bonuses are being directly funded by the US tax payer.

The New York State Attorney General said that this is an abuse of the bail out money and I agree. How can you with any clear conscience hold out your hand and take a reward for causing the worst financial results ever posted by a US company ever? How can you put into your back pocket the money of the tax payers that you have let down in such a monumental manner?

If I do well at work, I expect to be rewarded. However if by all measures I am responsible for posting historical losses, the only payout I would expect, is a minimum severance payout.


~ by jeditopcat on 16 March, 2009.

One Response to “Record losses – AIG’s fat cat payout”

  1. Huge bonuses paid out by ailing insurer AIG will be deducted from the firm’s next bail-out payment, the US treasury secretary says.

    In a letter to congressmen, Timothy Geithner said $165m (£116m) would be taken from $30bn the firm is due to get as part of its government bail-out.

    The plan comes after Mr Geithner faced heavy criticism for his handling of the increasingly controversial issue.

    Republicans said he should have done more to stop the bonuses being paid.

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