Posted on 03/21/2009 7:06:54 AM PDT by freespirited
As Congress and the Obama Administration consider legislation to limit bonuses at American International Group (AIG: 1.23, -0.36, -22.64%), documents obtained by FOX Business show AIG bonuses and other compensation were reviewed and changed by officials at the Treasury Department and Federal Reserve in November, when the Treasury made its first investment of taxpayer funds -- $40 billion -- in the company.
“Have your benefits team made any progress on the ‘soft’ issues, or heard anything from the fed [sic] on the bonus situation?” a Treasury official wrote in an e-mail on Nov. 1 about the transaction.
Despite their deliberations at the time, the Treasury and Fed officials, which were part of the Bush Administration, eventually decided to restrict compensation on just the top 75 company executives--and some of them may still have received hefty bonuses....
Under terms of the revised bailout in November, the government applied “stringent” limitations on compensation on AIGs top five senior officers, as required under TARP legislation, according to a Treasury document. But Treasury took an additional step in compensation provisions, requiring limits on “golden parachute” severance packages and a freeze on the size of the annual bonus pool for the next top 70 company executives as well.
However, in the details of the term sheet on the assistance, officials specified that the annual bonus pools to the next 70 senior managers – called “senior partners” – for 2008 and 2009 “shall not exceed the average of the annual bonus pool paid to Senior Partners for 2006 and 2007.
According to company financial documents filed with the Securities and Exchange Commission, as of November 12 last year, the balance in the senior partners plan was about $6 million. The term sheet also indicates senior partners were eligible for AIG’s “historical quarterly bonus program” as well.
(Excerpt) Read more at foxbusiness.com ...
/s
I predict Geithner is out. I am just waiting to see how long it takes for him to fall on the sword...and who else will follow.
That’ll be the spin alright. Never mind who actually signed the damn thing.
I agree Geithner is out - but who the heck is going to back fill that, or any of the other positions in Treasury? No one wants to work along with Geithner in the first place - professional suicide.
And anyone out there who is a money guru has been insulted and urinated on by this administration. That office and the entire department may remain empty and on the market like a Vegas home for sale.
But, but He CAN’t get sacked....he’s the only one in the whole dept.
This educated informed language is the problem. We're now dealing with Americans who, in large part, are idiots. We need headlines that read:
Federal government arranged for AIG bonuses
They might get it then.
Remember the Office of the President Elect and how everyone was praising him for getting his team in place?
It is going to take massive voter fraud to get this clown elected again.
Actually paulson’s first draft did just that, it made Treasury god, maybe it's still in the small print.
But Geitner was a Fed official 6 months ago.
I agree. His days are numbered. I think he will go sooner rather than later.
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