Monday, March 23, 2009

AIG in big trouble after Handing out bonuses

By David Lucas

Not to long ago AIG or the American International Group had received $170 billion in bailout money from the treasury and Federal Reserve to get them back on their feet. When news came up about the company giving out $165 million in bonuses, a lot of people became upset. “There are a lot of terrible things that have happened in the last 18 months, but what’s happened at A.I.G. is the most outrageous” Lawrence H. Summers, President Obama’s chief economic adviser. They feel that allowing a company on the brink of collapse to hand out this much money would put a really bad image on the government and their support on this nations countries. The government is stressing that there are regulations to how the companies use their bailout money and this is definitely not it. To think of the taxpayer’s money going to other people’s bonuses is just ridiculous. This has been a clear warning for all of the companies that have received bailout funds, including Chrysler who quickly rethought the idea of administering bonuses

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