March 15th, 2009
05:21 PM ET
6 years ago

AIG's insistence on bonuses raises ire in Washington

In a letter to the White House, AIG Chairman Edward Liddy, shown here in December, vows to curb bonuses.
In a letter to the White House, AIG Chairman Edward Liddy, shown here in December, vows to curb bonuses.

(CNN) - White House officials and some members of Congress reacted strongly Sunday to news that insurance giant AIG had intended to pay out $165 million in bonuses and compensation. The company has received at least $170 billion in federal bailout money.

Under pressure from the Treasury, AIG scaled back the bonus plans and pledged to reduce 2009 bonuses - or "retention payments" - by at least 30 percent. That did little to temper outrage at the initial plan, however.

"There are a lot of terrible things that have happened in the last 18 months, but what's happened at AIG is the most outrageous," Lawrence Summers, head of the National Economic Council, told ABC's "This Week."

"What that company did, the way it was not regulated, the way no one was watching, what's proved necessary, it is outrageous."

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Filed under: AIG
soundoff (7 Responses)
  1. labman57

    AIG is begging for federal handouts with one hand while giving the public the finger with the other.

    The banking industry would call this "business as usual", but the public calls it "chutzpah".

    March 15, 2009 10:15 pm at 10:15 pm |
  2. Chris Jackson FL.

    How in the hell can these people get raises for faliing? They failed in everyway and here they are beging for the peoples money and then trying to give themselves rasies for doin a really bad job! I think it is about time for me to leave this sorry country because until the people revolt and take back the country they will continue to rob the people blind!

    WE NEED A CIVIL WAR OR WE WILL LOSE OUR COUNTRY!

    March 15, 2009 10:17 pm at 10:17 pm |
  3. mb-texas

    Nationalize AIG and take over day to dayt any fire the top and the board members.Time to take steps to get this place ubder control.

    March 15, 2009 10:22 pm at 10:22 pm |
  4. Jim

    What a slap in the face of every american who has to pay for this failing company bailouts, then we have stand by and watch them give the leaders of this company huge bonuses. These are the same managers who made the company fail. We lose are homes, jobs,are digniety and have to go on welfare while they go on vacations. Our elected officials are a embarisment to every hard working american.
    The bailouts are a joke and the only one laughfing are the CEO's..
    Jim

    March 15, 2009 10:25 pm at 10:25 pm |
  5. Susanne

    I hear of all the nightly parties going on in the White House with very costly food being offered like Wagyu steaks at 100 Dollars a pound and yet another increase in their salaries in the Senate. They are living the high life on our money too. If they don't like what is being done with our bail our money, the least they could do is to set an example!

    March 15, 2009 10:26 pm at 10:26 pm |
  6. Deborah, Bronx

    Is AIG for .... REAL!! (just like those Wall Street SCrudges)!! Do they not have ANY CONSCIENCE at all!! I tell yu, some of these people must end up in Hell!! (how do they Sleep at nights)!! I Pay so much Tax, and caN'T even afford to purchase a House in New York to live in, and these Bastards just keep getting FREE money, which IF THEY DO PAY ANY tax at all, I'm sure the Percentage I Pay as a Public Servant, is WAAY HIGHER than the amt. these MORONS pay!! I'm FURIOUS!! How can this BE, how can this CONTINUE, when will this END!!!??

    March 15, 2009 11:52 pm at 11:52 pm |
  7. Deborah, Bronx

    I think the Goverment should let AIG go (once and forall).

    March 16, 2009 12:57 am at 12:57 am |