Obama vows to fight AIG bonuses
Barack Obama vowed on Monday to pursue “every single legal avenue” to block $165m in bonus payments by AIG amid mounting anger over the stricken insurance group’s use of federal bail-out funds.
The US president’s remarks came as Andrew Cuomo, New York attorney-general, opened an investigation into the bonuses and threatened AIG with subpoenas to secure the names of employees who received the money. Mr Obama voiced “outrage” that a group dependent on federal funds for survival was topping up salaries at a time when ordinary Americans were struggling to make ends meet.
“This is a corporation that finds itself in financial distress due to recklessness and greed,” he said. “Under these circumstances, it’s hard to understand how derivative traders at AIG warranted any bonuses, much less $165m in extra pay.”
This article was originally posted on FT.com