Sunday, March 22, 2009

AIG Bonuses Allegedly $53 million Higher Than Initially Disclosed

According to the attorney general of Connecticut Richard Blumenthal, AIG (AIG) bonuses that were paid by the company were actually $218 million, not $165 million to staff in the financial products unit. AIG has reportedly received about $182.5 billion in federal bailout funds.

Because of this, Congress is now trying to pass a bill to tax the AIG bonuses at 90%. This is not the right way for the government to get even, and sets a bad precedent. What the government should do is spelled out in my previous article, What's the Matter With AIG?, which included several steps the government should take. If necessary, have the company go through a structured bankruptcy.

Author owns AIG.

By Stockerblog.com

1 comment:

admin said...

My market forecast for this week - http://chartsandcoffee.blogspot.com/2009/03/sunday-night-coffee-3222009.html