AIG to pay back cash used for bonuses: Geithner
Insurance titan AIG, which received billions in US bailout funds, is to pay back the government for hefty bonuses shelled out to top executives, Treasury Secretary Timothy Geithner said on Tuesday.
By Agencies |
WASHINGTON: Insurance titan AIG, which received billions in US bailout funds, is to pay back the government for hefty bonuses shelled out to top executives, Treasury Secretary Timothy Geithner said on Tuesday.
"We will impose on AIG a contractual commitment to pay the Treasury from the operations of the company in the amount of the retention awards just paid," Geithner said in a letter to lawmakers.
"In addition, we will deduct from the 30 billion dollars in assistance an amount equal to the amount of those payments."
As outrage mounted over the payout of 160 million dollars in bonuses to a select group of top executives, Geithner said that President Barack Obama had "asked me to fully review all additional measures at my disposal to recoup these bonuses and to recover funds on behalf of taxpayers."
"We will impose on AIG a contractual commitment to pay the Treasury from the operations of the company in the amount of the retention awards just paid," Geithner said in a letter to lawmakers.
"In addition, we will deduct from the 30 billion dollars in assistance an amount equal to the amount of those payments."
As outrage mounted over the payout of 160 million dollars in bonuses to a select group of top executives, Geithner said that President Barack Obama had "asked me to fully review all additional measures at my disposal to recoup these bonuses and to recover funds on behalf of taxpayers."
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