Photo Credit: Doug Mills/ New York Times
The popular topic of today is the bonuses which were distributed within the American International Group. According to the New York Times today, over the past 6 months AIG received $170 billion from the government in order to stay afloat. Last Friday, it was confirmed that AIG had distributed $165 million as bonuses for company employees.
Edmund L. Andrews and Jackie Calmes reported this morning that, "Mr. Obama ordered the Treasury Department to, 'pursue every single legal avenue to block these bonuses' and the American taxpayers whole."
This entire situation becomes even more unsettling because none of the economic advisers or Chief Executive of AIG, Edward M. Liddy, will take responsibility for the final decision on the bonuses.
Andrews and Calmes reported, "Mr. Geithner, according to Treasury officials, insisted that the bonus plan was 'unacceptable' and called Mr. Liddy on Wednesday to demand changes. AIG executives said they would have never proceeded with the bonus payments before getting approval from the Treasury and the Federal Reserve."
http://www.nytimes.com/2009/03/17/business/17bailout.html?_r=1&ref=politics
Stacie Ayala
Journalism 311 Student
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