AIG executives paid millions in bonuses after receiving billions of dollars in public funds to avoid bankruptcy
| Date: March 16, 2009 | Source: Economic @ 21 |
| Category: Business | |
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Loading ... U.S. insurer AIG will distribute $ 100 million (euro 77 million) in bonuses to executives despite receiving economic aid worth more than 170,000 million dollars (about 130,000 million) by the U.S. Treasury States and the Federal Reserve reported the U.S. newspaper The New York Times on its website. The company, which filed earlier this month of March, the worst quarterly result in the history of Wall Street, has been pressured by the Treasury secretary, Timothy F. Geithner to renegotiate these rates. However, even after the touch of care reduced the amounts AIG Geithner, the U.S. administration has had to allow the distribution of bonuses after the insurer's chief executive, Edward M. Liddy, to claim that AIG is contractually obligated to pay them.
The recipients of these payments are extraordinary department executives of AIG Financial Products, the same who signed insurance contracts worth millions of millions of dollars, where in exchange for paying a premium, investors could make to the default risk of credit, as was the case of subprime mortgages. The premium plan, says The New York Times, will benefit 400 employees of AIG and the salaries range from 1,000 to $ 6,500,000 (five million).
U.S. President Barack Obama expressed his outrage regarding the collection of millions of dollars in bonuses by the directors of the world's largest insurer, AIG has received billions of dollars of public funds to avoid bankruptcy .
"Under current circumstances, it is difficult to understand how derivative traders at AIG may earn bonuses, much less $ 165 million (127 million euros). How can they justify this outrage to the taxpayers, who keep the company afloat ? "Obama said in a speech at the White House to present a plan of financing for small and medium enterprises.
In this sense, board member of Obama's economic advisers, Austan Golsbee said the U.S. president has already indicated to Treasury Secretary Tim Geithner, to take legal steps to combat these practices and ensure that no re- repeated in the future.
"Obviously we will not break the law, but there are a number of legal arguments," said Golsbee, who said the president has given the relevant instructions to Getihner in this regard.
Obama disapproval of bonuses for AIG employees charged occurs after Sen. Barney Frank claimed told the CNBC television that these managers may be entitled to collect the bonus, but "do not have the right to retain their jobs for life ".
April 23, 2009 at 23:45
[...] Kidnap their bosses that, far from solidarity with their subordinates, kept under the mattress the millions who continue to receive premiums. Paradoxically, economists are confident that the confidence in the market [...]