It is no surprise that the President wants to take a stand against AIG's unreasonable bonuses. But now, he apparently has ordered the Treasury Secretary to prevent payment altogether.
“In the last six months, A.I.G. has received substantial sums from the U.S. Treasury,” Mr. Obama said. He added that he had asked Treasury Secretary Timothy F. Geithner “to use that leverage and pursue every single legal avenue to block these bonuses and make the American taxpayers whole.”I'll say it again. It is time to stop trying to make corrupt banking executives do the right thing. It is time to start PUNISHING these executives for what they did wrong. Pay them their millions, and then start taking it back in fines and civil lawsuits. Who would want $6.5 million, if the cost is to have to pay back $20 million?
Later in the day, a White House official disclosed that the administration would use a pending $30 billion installment for A.I.G. to recoup the $165 million in retention payments to A.I.G. employees in the business unit that brought the company to the brink of collapse last year.
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As of this morning, 3/17/09, the execs have been paid the bonuses. Too bad.
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