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Bailed out insurer AIG hit by claw-back

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Bailed out insurer AIG hit by claw-back

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The struggling US insurance giant AIG will have to return bonuses paid out after public money was poured in to save the company.

AIG, once the world’s biggest insurer, is surviving on a federal rescue package equal to more than a hundred and thirty billion euros. But anger has been growing about bonuses paid to executives out of public cash.. Now Treasury Secretary Timothy Geithner has announced the planned bonuses would be cut from the next instalment payment in AIG’s bailout deal. The news of the claw-back of bonuses, which includes a special tax, will go down well with the American public who say they should never have been paid in the first place. The move against AIG’s executives will send shock waves along Wall Street where multi million dollar bonuses are common. In AIG’s case the company has created 73 millionaires with bonuses of a million dollars or more.