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$1 Million Bonuses for at Least 73 AIG Executives

2:57 P.M.: UPDATED BELOW WITH MORE DETAILS:

At least 73 employees of AIG's Financial Products unit -- the London-based division of the insurance giant that sold the high-risk derivatives blamed for the company's near-collapse -- got bonuses of at least $1 million out of the $165 million pot of bonuses that was recently revealed, New York Attorney General Andrew Cuomo said moments ago.

Cuomo subpoenaed AIG yesterday for details of the bonuses. AIG has received $173 billion in government bailout money to stay in business.

According to Cuomo, 11 of the AIG employees who received bonuses are no longer with the company, obviating the concept of the "retention bonus."

Also, $42 million of the $165 million in bonuses was given to 10 AIG employees, Cuomo said.

"Again, these payments were all made to individuals in the subsidiary whose performance led to crushing losses and the near failure of AIG," Cuomo writes. "Thus, last week, AIG made more than 73 millionaires in the unit which lost so much money that it brought the firm to its knees, forcing a taxpayer bailout. Something is deeply wrong with this outcome."

You can read his entire letter to Rep. Barney Frank (D-Mass.), head of the Financial Services committee, here.

UPDATE:

Cuomo's letter also says:

-- The top recipient of the bonuses received more than $6.4 million.

-- The top seven recipients got more than $4 million each.

-- A retention bonus for an employee who left totaled $4.6 million.

-- Frank Ahrens
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By Frank Ahrens  |  March 17, 2009; 2:57 PM ET
Categories:  The Ticker  | Tags: AIG, Cuomo, bonuses  
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Comments

It's totally outrageous this is going on. Suggest going back to day one on this whole bailout issue. THE ORIGINAL DESIGNER\AUTHOR OF THIS BAILOUT CRAFTED AND INSTIGATED A FRAUD ON THE AMERICAN PEOPLE! Stand down and look at what is going on? Goldman Sachs and all of the major derivative traders are being paid for their mistakes, misjudgments and misdeeds. MADOFF too! It's one big heartless and unmerciful scam. Retroactive regulatory laws need to be written ASAP.

Posted by: 2516E | March 17, 2009 3:03 PM | Report abuse

This is the equivalent of looting. It's not like if these folks were unemployed tomorrow they aren't already set for life. If this were a grocery store and somebody was stealing milk, the National Guard would be sent in.

Posted by: SarahBB | March 17, 2009 3:18 PM | Report abuse

This is beginning to look like the payment of hush money by the execs at AIG who are deathly afraid that thse people will talk about what they know - about the culture of deciet, corruprion and greed sponsored bt the CEO and Board of Directors.

It now seems at AIG was designed to rip people off and that the Fed and tax payers ended up being the dummies "played" by Hank Paulson and his cronies!

Hank Paulson is in on this scam as much as are the folks at AIG.

Posted by: dotto | March 17, 2009 3:28 PM | Report abuse

President Obama, as our duly elected representative in terms of our 80 percent ownership of AIG, needs to have these current and former execs shipped to do financial transactions at the North Pole on a rapidly melting ice shelf, until such time as the bonus money is returned.

There's a new game in town, and it's time to unwind the Bush Bailouts for Socialist Executives!

Posted by: WillSeattle | March 17, 2009 5:13 PM | Report abuse

Okay -- the US Taxpayers own 80% of this company that is "too big to fail." What the government needs to do on behalf of the taxpayers is start breaking this company up and selling off the pieces. NO corporation should be so large that it can take down a global economy when it mismanages itself. NO MORE BAILOUTS for these bums! When the "real world" folks do a bad job, we're fired -- so ditch the deadwood, split the company up into smaller pieces, profit from the good portions to payoff the bad. In the end, it's going to happen -- why put it off any longer?

When is Washington going to wise up? This is the 3rd "scandal" with AIG (the huge benefit immediately following the first bailout, the "training" seminar, and now this). This company is corrupt and needs to GO as of YESTERDAY!

Posted by: Tactless | March 17, 2009 7:34 PM | Report abuse

Publish their names and addresses!

Posted by: Poster8 | March 17, 2009 8:14 PM | Report abuse

Listen up People !
Who can you trust anymore ??
AIG execs along with so many other CEO's are just plain out STEALING from the people. And it doesn't matter if you are a Republican or Democrat, a liberal or a conservative, a dove or a hawk....all our politcians are lieing to us. They spend more time scrambling to find ways to protect themselves then they do putting the brakes on this Outragous Stupidity of giving billions to the very people that have brought this country down on it's financial knees. Branches of our Govt, including our self proclaimed 'Savior', Obama KNEW about this AIG Bonus !
Wake up people ! Smell the roses !
Are your life savings disappearing like mine, while the CEO's and Politicians get richer ?! HELLO !!???
And a bigger problem is ........what can we the people do about? Absolutely nothing! We the people(at least I for one) no longer have any trust or faith in our CEO's and politicians.
Seriously, who can you trust anymore?
Who can you trust?

Posted by: WherestheUSAIknew | March 18, 2009 8:40 AM | Report abuse

The comments to this entry are closed.

 
 
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