Obama Asks Geithner to Find Way to Rescind AIG Payouts
Posted by madmaxmacaw on March 16, 2009
President Obama and Treasury Secretary Timothy Geithner meet with small business owners and community lenders on Monday.
President Barack Obama, trying to contain a political firestorm, instructed Treasury Secretary Timothy Geithner “pursue every legal avenue” to block $165 million in bonuses to AIG executives who were in part responsible for the company’s near collapse.
“This is a corporation that finds itself in financial distress due to recklessness and greed,” Mr. Obama said ahead of announcing a plan to rescue small businesses through a raft of new lending options. “Under these circumstances, it’s hard to understand how derivative traders at AIG warranted any bonuses, much less $165 million in extra pay. How do they justify this outrage to the taxpayers who are keeping the company afloat?”
“This isn’t just a matter of dollars and cents. It’s about our fundamental values,” he added.
Meanwhile, New York Attorney General Andrew Cuomo asked AIG to provide details on who’s receiving bonuses in its AIG Financial Products subsidiary by 4 EDT p.m. on Monday or face subpoenas. He has blamed the unit for the insurer’s near collapse last year. Breaking News
