White House officials and some members of Congress reacted strongly Sunday to news that insurance giant AIG had intended to pay out $165 million in bonuses and compensation. The company has received at least $170 billion in federal bailout money.
In a letter Sunday to Treasury Secretary Timothy Geithner, U.S. Sen. Russ Feingold urged the Obama administration to explore “legal options” to prevent the millions in AIG payouts.
In this writer’s opinion AIG needs to do a better job defining terms. These are not bonuses as most people understand them. They are better described as commissions. Regardless this PR problem is only compounding the Insurance giant’s problems.