Politics | 03/16/2009 9:00 am
Pelosi, Frank Fire Back at AIG

AIG executives may be the most hated people in America today — or at least in Washington. Politicians are absolutely furious that the insurance giant, which received a government bailout, plans to pay its executives $165 million in bonuses.
House Financial Services Committee Chairman Barney Frank blasted the company this morning, and suggested to the "Today" show that it may be time for AIG, 80% of which is owned by the federal government, to start cleaning shop: "These people may have a right to their bonuses but they don’t have a right to their jobs forever." Frank went on to intimate that the government could claim that right: "These bonuses are going to people who screwed this thing up enormously … Since the federal government … now essentially owns that company, maybe it’s time to fire some people."
Sen. Russ Feingold also joined the chorus. He sent a letter to Treasury Secretary Timothy Geithner urging the administration to overturn the bonuses. Wrote Feingold:
As you know, the federal government has provided AIG with $170 billion in taxpayer money and currently owns 80% of the company … I share your outrage that a company which has been bailed out by the taxpayers for its mistakes would turn around and pay its executives such a staggering sum of money.
Feingold also said he and his allies will look into the legal options for blocking the bonuses. A number of other politicians have also filed critical letters, including Rep. Elijah Cummings and House Speaker Nancy Pelosi. Describing the bonuses as "unconscionable," Pelosi wrote, "I call upon the executives at AIG to right the wrong they have done to American taxpayers, who are footing the bill for the most expensive government rescue in history. They should renounce the bonuses and refuse the excessive retention pay they previously agreed to."
AIG, of course, insists the company’s contractually obligated to pay their employees — including $9.5 million to its top executives. Further, AIG says the extra dough helps them keep "the best and the brightest." Those are the same people who led the company to the brink of collapse.























51 Reader Comments (so far…) Sign In or Register to comment
The guys at AIG just don’t get it, do they…what’s it going to take? I would love to see their heads roll all the way down Wall St., and I hope that Congress goes after them with everything they have.
It may just take an Act of Congress to get those people out of AIG. If the Government owns 80%, find out how much it would be to fire them and let them out of their contracts, sure that amount won’t be as much as this bonus there getting…but if they didnt do the job they were hired to do, can’t they get fired without bonus or anything?
Why are they being rewarded for a job NOT so well done?
Excellent comment Mary Quite, how is it possible for this Obama Administration to question the AIG bonuses given to its executives when the TARP money given to them by Congress had no stipulations attach to it?
We are talking about $165 million in bonuses! This Administration gave this company BILLIONS of dollars! President Obama when question about the "pork" in the stimulus bill said that this was a "tiny amount less than 1% of the BILLIONS in the Stimulus Bill"!
But now this bunch is trying to take a mere $165 million from AIG for bonuses agreed apron by the Board.
Is not $165 million "tiny" compared to BILLIONS spend by this Obama administration?
Please spare me all this noise over this "tiny" little amount!
And as for inflated salaries:
Citigroup Inc (C.N) awarded Chief Executive Vikram Pandit $10.8 million of compensation in 2008, a year in which the bank required two government rescues totaling more than $45 billion.
About $7.7 million of the compensation was a sign-on bonus the bank gave Pandit in January 2008, according to a regulatory filing on Monday. Pandit also received a salary of nearly $1 million and stock options of $1.6 million.