AIG to pay out $100 million in bonuses

New York Times is reporting that AIG will be handing out $100 million in bonuses this week.

AIG agreed to cut “retention” bonuses by $20 million however the AIG “trick or treaters” will receive hefty retention bonuses. These bonuses are going to the financial products division that made the risky bets and lead to a $180 billion government (a.k.a. taxpayer) bailout.

Kenneth Feinberg (Treasury Department’s “special master for compensation) said the payments are contractual obligations entered into years ago. He also stated that the bonuses are “outrageous” but legal.

WHY ARE THEY LEGAL? They are legal courtesy of Timmy Geithner and Larry Summers who put the screws to Chris Dodd regarding his amendment to limit all future bonuses regardless of when they were promised. Summers stated the administration had no legal grounds to stop bonuses. Hey Larry, care to venture a guess on bonus levels had AIG gone belly up?

Geithner and Larry insisted that the bonus limitations only apply to future compensation contracts, not ones that already existed. Yes, the Treasury Secretary and the Director of the National Economic Council made sure the AIG bandits would continue receiving bonuses courtesy of the taxpayer.

Feinberg continues to work with AIG on their bonus structure in an attempt to not “offend” the taxpayer. AIG employees continue to rake in millions in bonuses and the next generation is left with a monstrous liability.

Too late Ken, we surpassed offensive months ago.