Author Topic: Top AIG bosses 'to repay bonuses' (d uproar was loud enough) - bbc.com  (Read 614 times)

Offline proverbs6_31

  • Global Moderator
  • Hero Member
  • ****
  • Posts: 1,151
  • Gender: Female
  • OS:
  • Windows Vista Windows Vista
  • Browser:
  • Firefox 3.0.7 Firefox 3.0.7
    • View Profile

Top AIG bosses 'to repay bonuses'

Nine of the 10 executives who received top bonuses from US insurance giant AIG have agreed to return them, New York's attorney general says.

Andrew Cuomo said he hoped to recoup $80m (?55m) of bonus payments - which amounts to about half of the $165 million paid by AIG on 15 March.

The US rescued AIG with bail-out funds totalling $170bn since September 2008.

Treasury Secretary Timothy Geithner is due to testify on Tuesday on the need to reform the US financial system.

He said on Monday that the banking crisis showed the country's financial regulatory system had failed and needed to be replaced by a stronger system with a better regulations.

"Our system basically failed its most fundamental test," he said in remarks before he was due to appear before the House of Representatives Financial Services Committee on Tuesday. "It was too fragile."

Bonus tax?

AIG's decision to pay bonuses despite being bailed out by the government had sparked widespread outrage in the US.

Ranked the 18th biggest company in the world by Forbes at the start of 2008, it suffered massive losses related to the problems afflicting the housing and credit markets.

AIG played a key role in insuring risk for financial institutions around the world.

The troubled insurer reported a loss of $61.7bn for the last three months of 2008, the biggest quarterly loss in corporate history.

The bonus debacle had prompted the approval of a bill by the US House of Representatives to impose a 90% tax on bonuses awarded by companies bailed out by the US government.
   
But President Barack Obama said such a measure would be unconstitutional.

The announcement that much of that money is now being returned seems likely to ensure that the bill never reaches his desk, says the BBC's Richard Lister in Washington.

Mr Cuomo said 15 of AIG's top 20 bonus recipients had agreed to return their payments, which he estimated to total around $30m.

"A number of them have risen to the occasion and I applaud them," Mr Cuomo - who is investigating AIG as well as several other financial institutions - said of the executives who had offered to give up their bonuses.

He added that he expected to recoup all of the bonuses paid to American citizens working for AIG, which accounts for around half the $165m the company paid out.

Mr Cuomo said he did not plan to release the names of the employees who have agreed to return the bonuses, suggesting there was no implied threat that if an employee refused to return their bonus, their name would be disclosed.

Bonuses ranging from $1,000 to more than $6m were paid to some 400 staff in the division handling the mortgage-backed assets at the heart of the financial crisis.

Seven senior employees were paid more than $3 million, while 73 members of staff received bonuses of more than $1m.

Advertisements


Nigerian Best Forum . NBF


Offline beibee

  • Global Moderator
  • Honorable
  • ****
  • Posts: 29,294
  • Gender: Male
  • OS:
  • Windows XP Windows XP
  • Browser:
  • Microsoft Internet Explorer 7.0 Microsoft Internet Explorer 7.0
    • View Profile


a good start?
CLICK HERE TO MAKE NEW FRIENDS ON NBF SOCIAL NETWORK
You Need to Make 50 Posts For Your Link To Appear In your Signature
YOU DON'T HAVE TO SPAM TO INCREASE YOUR POSTS COUNT. START BY WELCOMING NEW MEMBERS AND HELPING OTHERS. SPAMMING WILL ONLY GET YOU BANNED!

Nigerian Best Forum . NBF

Enter Your Email Below For Daily Jobs Updates, It's Free

100% Free


Offline Prince

  • Administrator
  • Honorable
  • *****
  • Posts: 32,956
  • Country: ng
  • Gender: Male
  • OS:
  • Windows XP Windows XP
  • Browser:
  • Firefox 3.0.7 Firefox 3.0.7
    • View Profile
It's time to vomit.

Offline ibiyidun

  • Full Member
  • *
  • Posts: 243
  • Gender: Female
  • OS:
  • Windows XP Windows XP
  • Browser:
  • Firefox 3.0.7 Firefox 3.0.7
    • View Profile
Americans can be very hot tempered and, an angry American + a loaded gun can be a very lethal blend. 

For di safety of those making refunds, it'd be a good idea if their names were published/they junked all AIG stickers/identifiers until further notice.  

-----------------

As if I knew. . .

Vandals attack Fred Goodwin's home

1 hour 50 mins ago
Reuters

Vandals smashed windows and damaged a car Wednesday at the home of a former bank chief who sparked public anger when he refused to give up his huge pension after the government rescued his bank. 

A previously unknown group calling itself "Bank Bosses Are Criminals" said it had carried out the attack.

Sir Fred Goodwin, former chief executive of the Royal Bank of Scotland, left the bank with an annual pension of around 700,000 pounds last October after the government bailed it out.

After the attack in the early hours, a protest group emailed local papers claiming responsibility for the attack.

"We are angry that rich people, like him, are paying themselves a huge amount of money, and living in luxury, while ordinary people are made unemployed, destitute and homeless," the message said.

"This is a crime.  Bank bosses should be jailed.  This is just the beginning. "

BACKLASH

Goodwin's refusal to repay the pension, despite leading the bank into Britain's biggest ever corporate failure, triggered a public and political backlash.

Prime Minister Gordon Brown described the payment as "unacceptable" and the government has said it is weighing legal action to claw back the money.

Police said no one had been arrested.  A spokesman would not say if Goodwin and his family were at home at the time.

Goodwin, 50, has kept a low profile since details of his pension payout emerged last month.  He has been criticised by politicians and vilified in sections of the media.

Anti-capitalist protesters are planning demonstrations in London next week around a G20 summit of world leaders, with flyers titled "Storm the Banks" circulating on the Internet.

RBS, which has its headquarters in Edinburgh and is now majority owned by the government, said it was providing security for Goodwin's home in the city at a cost of around 290 pounds per month.

"It is normal RBS practice to provide such arrangements for departing senior executives," the company said in a statement.

RBS reported a loss of 24. 1 billion pounds in 2008, the largest in British corporate history.

(Reporting by Peter Griffiths; John Bowker and Frank Prenesti and Stefano Ambrogi, editing by Mark Trevelyan)
« Last Edit: March 25, 2009, 06:35:24 PM by ibiyidun »
CLICK HERE TO MAKE NEW FRIENDS ON NBF SOCIAL NETWORK
You Need to Make 50 Posts For Your Links To Appear In both Signature and Posts.

Nigerian Best Forum . NBF


 

Enter Your Email Below For Daily Jobs Updates, It's Free

100% Free