Ny Official Reveals Bonuses Paid To Aig Employees

03.18.09 | FL News Team

American International Group has paid more than 160-million dollars in bonuses to 73 people in its financial products division, which was responsible for the company's near collapse. In a letter to Congressman Barney Frank, New York state Attorney General Andrew Cuomo said the top recipient of the bonuses received more than six-million dollars.

Mr. Cuomo said seven others received four-million dollars each while 22 people were given at least two-million each. He said eleven of the people who received bonuses of one-million dollars or more no longer work at AIG. Cuomo has subpoenaed AIG to turn over a list of names of people who received what he calls lavish and staggering bonuses.

Payment of the bonuses has caused a firestorm of controversy, sparking a public relations nightmare for AIG and the government. AIG has received about 180-billion dollars in federal bailout money and had been cautioned to spend it well.

On Capitol Hill, members of Congress are discussing legislation to tax the bonuses up to 100 percent. AIG CEO Edward Liddy is expected to take a verbal flogging when he testifies before a House subcommittee today.