WORLD> America
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WORLD> America
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Chorus of outrage over millions in AIG bonuses
(Agencies)
Updated: 2009-03-16 09:16 "It makes me angry. I slammed the phone more than a few times on discussing AIG," Bernanke said. "It's -- it's just absolutely -- I understand why the American people are angry. It's absolutely unfair that taxpayer dollars are going to prop up a company that made these terrible bets -- that was operating out of the sight of regulators, but which we have no choice but to stabilize, or else risk enormous impact, not just in the financial system, but on the whole US economy." AIG reported this month that it had lost $61.7 billion for the fourth quarter of last year, the largest corporate loss in history.
Liddy said in his letter that "quite frankly, AIG's hands are tied," although he said that in light of the company's current situation he found it "distasteful and difficult" to recommend going forward with the payments. Liddy said the company had entered into the bonus agreements in early 2008 before AIG got into severe financial straits and was forced to obtain a government bailout last fall. The bulk of the payments at issue cover AIG Financial Products, the unit of the company that sold credit default swaps, the risky contracts that caused massive losses for the insurer. Goolsbee acknowledged the AIG example could make it harder to sell the administration's financial plan to Congress. "Yes, you worry about that backlash. But you're also angry that this would happen at an institution that has been so troubled and you're trying to save. So I think that's perfectly fair," he said. Goolsbee appeared on "Fox News Sunday," and Summers was on CBS' "Face the Nation" and ABC's "This Week," where McConnell also was interviewed.
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