Pay czar asks AIG not to pay promised bonuses
The Obama administration's pay czar has asked American International Group to withhold some of the millions in bonuses promised to its employees.
The Obama administration’s pay czar has asked American International Group to withhold some of the millions in bonuses promised to its employees.
A report from the special inspector general overseeing the $700 billion financial bailout says Kenneth Feinberg advised AIG not to pay the full amount.
Treasury owns about 80 percent of AIG. The government has committed more than $180 billion to wind down the insurance and financial services conglomerate. The bonuses will be paid to the division whose bad bets helped sink the company.
News about the bonuses sparked public outrage in February, but Treasury officials have said there was no legal way to exit the contracts.
The IG’s report also says Treasury failed to fully analyze AIG’s compensation before bailing it out.
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