AIG in Ajijic, Lake Chapala, Mexico
Well President Obama is not happy with AIG and neither are the American people. It would appear that this company plans to honor various employment contracts and are awarding over 165 million in bonuses to those who oversaw the company’s crisis.
AIG, says the President, is in trouble because of recklessness and greed and in no universe should their actions be awarded. This money is coming from the taxpayers who are currently bailing them out so they can continue to help what is being called Main Street.
These actions have been labeled outrageous by Larry Summers, Director of the White House’s National Economic Council for President Obama and AIG has already received 173 billion in US bailout funds making the single largest recipient.
The chairman of AIG, Edward Liddy, is being pressed by the administration to rescind these bonuses and all legal avenues are being explored to stop them from going forward.
The attorney general is asking AIG to supply the administration with a list of who is receiving these bonuses by 4:00 pm today.
AIG is becoming one of the White House’s biggest headaches and allowing it to fail would be catastrophic for the economy because their intricate insurance contracts are inextricably entwined with almost every financial player in the global economy.
It is a very difficult situation as the failure of AIG would cause banks to be on the hook themselves if AIG was not there to back up their bad investments.
The collapse of AIG could spark a worldwide calamity and Edward Liddy is alleging that these people need and are legally entitled to their bonuses or else they (AIG) would have trouble attracting top people.
Nonetheless, President Obama is very angry and will continue to try and stop these “top people” from receiving this 165 million in undeserved bonuses.