March 16th, 2009
04:05 PM ET
11 years ago

Congress looking for ways to recoup AIG bonuses

The House Financial Services Committee, chaired by Rep. Barney Frank, is taking a look at the bonuses being paid to AIG employees.

The House Financial Services Committee, chaired by Rep. Barney Frank, is taking a look at the bonuses being paid to AIG employees.

WASHINGTON (CNN) - Outraged House Democrats are scrambling to figure out what, if anything, they can do to recoup the $165 million in bonuses AIG awarded to employees after the company received $170 billion in federal bailout funds.

A House Democratic leadership aide and a House financial services committee aide said Congress is trying to shame AIG executives and employees into forgoing the bonuses while investigating possible legal avenues that can be used to force AIG to return the money used for bonuses.

The House financial services committee is trying to determine if Congress can force AIG to renegotiate the bonuses the company says it is legally required to give employees as dictated by contracts negotiated before it received its first infusion of bailout dollars in September, according to the committee aide.

Both aides said it is unclear what authority Congress has to force AIG to take back the bonuses. Complicating the issue is the fact that the first infusion of cash to AIG was authorized by the Federal Reserve before Congress passed the $700 billion Trouble Asset Relief Program, which included some restrictions on executive pay.

AIG CEO Edward Liddy will face intense questioning about the bonuses when he testifies Wednesday before the House Financial Services subcommittee on capital markets.

Filed under: AIG • Congress
soundoff (131 Responses)
  1. Zion

    This is a lot more than just greed,all of the people involved with the collapse,should be called by there true names!!
    "Economic Terrorist " that is what they truly are,to turn your country into a crap hole,is the work of a terrorist, all involved should be branded and treated as such.
    They have caused sucides,murders,and millions of shattered family's,and dreams.
    Al-Quaida could only dream of causing such destruction and mayhem
    in this country.
    Follow the money through,family and friends and will find all the terrorist involved.
    Bring them all to justice + get all the bonuse's back.

    AMEN, and this is the truth.

    March 16, 2009 05:45 pm at 5:45 pm |
  2. John from California

    Institute a one time "thief tax" and recoup the money that way.

    March 16, 2009 05:47 pm at 5:47 pm |
  3. Majik

    Barney,Nancy, Reid and friends rammed the bailout through congress screaming the sky is falling and gave them billions with no strings attached and now they are crying foul. Everyone that had a part in the bailout should be voted out of office and replaced with people with the interest of honesty and integrity of government as thier goal.

    March 16, 2009 05:51 pm at 5:51 pm |
  4. Mike, FL

    We all have to thank the Ragen admin and Phil Grham for deregulating the wallstreet and letting the fat cats regulate themselves. You wonder why the Republican party has become a joke!

    March 16, 2009 05:54 pm at 5:54 pm |

    I think it is just dispicable that AIG continues to be "Arrogant Donkeys"!! The fact that we are facing such an economic down fall has not stopped the "Untouchables" of AIG. I do not sympathize with this type of disregard for the current stance in our country. I do not care about their pre-promised bonuses, for going these bonuses will help the current situation. Let me guess, AIG will continue to ask for "Taxpayers Dollars!!, in order to keep them afloat. I have news for AIG, the temperment of the current misuse of funds may eventually SHUT YOU DOWN!!!!!

    March 16, 2009 05:55 pm at 5:55 pm |
  6. kelly WI

    B.S. They are just trying to pander to the poor populace.
    They aren't going to do anything except support their Ivy League elists who fund the dem party. And AIG knows it.
    Smoke and mirrors. All for show.

    March 16, 2009 05:56 pm at 5:56 pm |
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