If you think that getting $170 billion in taxpayer bailout money would embarass the AIG from giving millions in bonuses, think again: the beleagured financial company is going forward with plans for $165 million of bonuses and employee retention pays ... with the government's grudging approval:
A.I.G. had set up a special bonus pool for the financial products unit early in 2008, before the company’s near collapse, when problems stemming from the mortgage crisis were becoming clear and there were concerns that some of the best-informed derivatives specialists might leave. It locked in a total amount, $450 million, for the financial products unit and prepared to pay it in a series of installments, to encourage people to stay.
Only part of the payments had been made by last fall, when A.I.G. nearly collapsed. In documents provided to the Treasury, A.I.G. said it was required to pay about $165 million in bonuses on or before Sunday. That is in addition to $55 million in December.
(Photo: threecee [Flickr])
Previously on Neatorama: Posts tagged Economic Crisis