AIG to Dole Out $165M in Bonuses

Says he doesn't back retention bonuses

(NEWSER) - AIG’s former CEO tells CBS that the bonuses now sparking national outrage would not have happened under his watch. Hank Greenberg, ousted in 2005, said he doesn’t back such retention bonuses, blamed the firm's collapse on the "stupidity" of his successors, and thinks the current CEO should go. “When I was there, nobody had a contract in the company, including me. I didn't believe in them. If you didn't do the job, you didn't deserve to be there,” he said. More»

Liddy says paying employees will help taxpayer in long run

(NEWSER) - AIG's $165 million bonus payout has produced "a palpable wave of anger," admits Edward Liddy, the insurance giant's government-appointed CEO. But in an op-ed for the Washington Post, Liddy says that paying employees now will prevent "undue risk" and help AIG wind down the most dangerous positions on its book. He adds that "had I been chief executive at the time, I would never have approved the retention contracts." More»

Insurer will be forced to return $165 million, treasury boss says in letter

(NEWSER) - Treasury Secretary Tim Geithner promised last night that taxpayers wouldn't be paying a penny toward AIG's massive executive bonuses, Bloomberg reports. He explained in a letter to lawmakers that the government would require the insurer to pay back the $165 million from company operations and that an equal amount would be deducted from the next round of bailout payments. Geithner also vowed to speed up AIG's restructuring. More»

(NEWSER) - AIG chief Edward Liddy has the not-so-distinct pleasure of testifying before Congress tomorrow just as rage at his company is reaching a full-throated roar. The House and Senate seem to be in a race to see who can recover the $165 million in bonuses faster, the Hill reports. If AIG employees don't give them up, Sen. Schumer suggested a tax on them of 91%, Rep. John Dingell pushed for 95%, and, later, Rep. Steve Israel and other House Democrats called for 100%. More»

President instructs Geithner to use "every legal avenue" to reclaim funds

(NEWSER) - President Obama has asked Tim Geithner to use “every legal avenue” to prevent AIG from paying out $165 million in bonuses to top employees who had a hand in the company's near-collapse, the Wall Street Journal reports. "This isn't just a matter of dollars and cents. It's about our fundamental values," said Obama. More»