AIG
New York Attorney General Andrew Cuomo has announced that he expects to recoup around half of the $165m bonuses paid out by insurance group AIG after the company was bailed out by the US government in September last year.
AIG had posted accounts for the last three months of 2008 showing the biggest quarterly loss in corporate history at $61.7bn.
Responding to both public and political outcry, Cuomo has managed to ease a difficult situation by ensuring that any payments made to American citizens working for AIG would be returned, without the need to pass new legislation that would make the bonuses subject to a 90% tax.
While many of the beneficiaries have agreed to return the bonus payments, there is still a question mark over the balance of some eighty odd million. It remains to be seen whether the Attorney General has done enough to appease the public, who are still seeing failure at the highest level rewarded with huge amounts of cash.
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