US President Barack Obama said on Monday that his administration will stop insurance giant American International Group (AIG) from paying 165 million dollars of bonuses to its executives.
"It's hard to understand how derivative traders at AIG warranted any bonuses, much less 165 million dollars in extra pay," Obama said at the outset of an appearance to announce a plan to boost small businesses loans.
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US President Barack Obama (L) and Treasury Secretary Timothy Geithner arrive in the East Room of the White House in Washington March 16, 2009 to make announcements on helping small business during the economic crisis. [Xinhua] |
"How do they justify this outrage to the taxpayers who are keeping the company afloat," the president said, adding that the insurer is in financial straits because of "recklessness and greed".
The president's remarks came as the financially strapped AIG, which Obama said has received "substantial sums" of federal aid from the federal government, was reported to be paying 165 million dollars of bonuses to its executives.
The 165 million dollars were payable to executives by Sunday and was part of a larger total payout reportedly valued at 450 million dollars.
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The American International Group (AIG) building in New York's financial district, March 16, 2009. [Xinhua] |
Obama said he has asked Treasury Secretary Timothy Geithner to "pursue every legal avenue to block these bonuses and make the American taxpayers whole."
"This isn't just a matter of dollars and cents," the president said. "It's about our fundamental values."
AIG lost 61.7 billion dollars in the fourth quarter of 2008, marking the largest corporate loss in history. The company has so far received more than 170 billion dollars in a federal rescue.
(Xinhua News Agency March 17, 2009)