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Fed's Bernanke wanted to block AIG bonuses
- Federal Reserve Chairman Ben Bernanke told Congress Tuesday he wanted to sue to stop insurance giant AIG from paying millions in bonuses, but was talked out of it.
- He also said that a collapse of the global insurance giant could have caused a "global financial and economic meltdown."
- "Its failure could have resulted in a 1930s-style global financial and economic meltdown, with catastrophic implications for production, income and jobs," Bernanke told the panel.
- As a result, the government has bailed out AIG four times, to the tune of more than $180 billion altogether. The company recently paid at least $165 million in bonuses to employees who worked in the financial products division that has been blamed for the its near-collapse. The bonuses came even as AIG reported a stunning $62 billion loss, the biggest in U.S. corporate history.
- New York Attorney General Andrew Cuomo said Monday that 15 employees who received some of the largest bonuses from AIG have agreed to return them in full, totaling about $50 million.
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