91°
Baton Rouge, Louisiana
3 Day Outlook
Mon
94°
72°
0%
Tue
95°
74°
10%
Wed
96°
72°
10%

Latest Weather Blog

Follow our weather team on social media

Pay czar: AIG bonuses are 'outrageous' but legal

5 years ago February 03, 2010 Feb 3, 2010 Wednesday, February 03 2010 Wednesday, February 03, 2010 7:43:55 AM CST in News
Source: Associated Press
By: Andrea Fontenot

Executives in AIG's financial products division are getting $100 million richer, and the White House pay czar calls the bonuses "outrageous."

However, Kenneth Feinberg said the payments are contractual obligations entered into years ago.

And he pointed out that AIG executives have pledged to repay $39 million out of $45 million in previous bonuses to the U.S. Treasury.

The insurance giant was hit hard by Wall Street's meltdown in 2008 and still hasn't repaid all of the $180 billion the government gave to rescue it from financial disaster.

Feinberg told ABC's "Good Morning America" that he is using whatever leverage he has to get that money returned to the taxpayers.

Feinberg said the contracts that obligate the company to pay the bonuses expire in March.

More News

comments powered by Disqus

Desktop News

Click to open Continuous News in a sidebar that updates in real-time.
Radar
7 Days