Government Tells Aig To Trim Bonuses By 198 Million

10.14.09 | FL News Team

The Treasury Department wants American International Group to trim bonuses this year by 198-million dollars. ABC News reports the order comes from Kenneth Feinberg, the Treasury's so-called pay czar -- the special master for executive pay. Last year, AIG outraged taxpayers by taking 120-billion dollars in federal bailout money and then doling out 168-million dollars in year-end bonuses to executives and employees.

 Much of the money went to people in the Financial Products unit -- the division that drove AIG to the brink of bankruptcy with risky default credit swaps. The company eventually asked for some of the money back. Forty-five-million was pledged, but employees have returned just 19-million. The controversial bonuses will be the topic of testimony before a congressional oversight committee today.