Rep. Frank wants to recover AIG bonuses

[TWiley]

WASHINGTON (Reuters) - U.S. Representative Barney Frank, chairman of the House Financial Services Committee, said on Sunday the government needs to determine if millions in employee bonuses at American International Group Inc can be recovered.

"We need to find out whether these bonuses are legally recoverable," Frank, a Democrat, told the "Fox News Sunday" program, adding that the timing of the company's commitment to make the awards to its employees was important.

Embattled insurer AIG, which has received three government bailouts totaling $180 billion, had promised to pay about $1 billion in retention bonuses over a period of several years, half of which has already been paid.

AIG Chairman Edward Liddy said in a letter to U.S. Treasury Secretary Timothy Geithner that the firm was legally obligated to make already-committed 2008 employee-retention payments, the value of which were set early last year before problems at the Financial Products unit became public.

About half of the $1 billion was due to be paid to staff of AIG's main insurance businesses and the rest to employees of the largely unregulated AIG Financial Products.

AIG Financial Products was the unit that made bad bets on toxic mortgages and credit default swap contracts that led to the company's near collapse.

According to company documents obtained by Reuters on Saturday, the financial products unit is obligated to pay $220 million in employee retention payments for 2008, $55 million of which were paid in December and $165 million required to be paid by Sunday.

Liddy said in the letter the company agreed to revamp its system for paying bonuses after the Obama administration objected to the payouts.

Full Story: https://news.fidelity.com/news/news.jhtml?articleid=200903151000RTRSNEWSCOMBINED_TRE52E0ZJ_1&cat=Top.Investing.RT&IMG=Y

[bif]

1. What does revover mean?

Is that a new banking term?

[av8rdave]

3. I was wondering the same...

It must mean either to vover again, or to "rev over" something, whatever that is.

[TWiley]

4. Well Frankly, as in Barney, it means that I don't type too good.

derm spill chikker !!

[theoldman]

2. Although I agree with Barny Frank I do not think any money will

be returned. It's like closing the barn door after the cow is long gone. There were no strings attached to the original bailout money.

[upi402]

5. Good, some CYA may be needed to salvage whatever justice possible

By any means necessary. Kucinch or Wellstone would have confiscated their bank accounts and property by now. At least I can dream...

[madokie]

6. sic 'em Barney

I love this man, he's a good solid democratic representative. He always seems to be on the same side of the issues as I find myself. I wish I could be so lucky as to have representation in my government like him. Well in the big scheme of things he does represent me and I feel fortunate in that. Good Man Barney Frank.

[Hepburn]

7. ....

...:applause:

Go get 'em, Barney!