From Breitbart --
American International Group is paying out millions of dollars in executive bonuses to meet a Sunday deadline. But the troubled insurance giant has agreed to administration demands to restrain future payments.Afraid of legal disputes over contract obligations, AIG feels they must do the right thing and honor paying $ million in bonuses from previous contracts. Plus they want to keep & be able to hire top quality employees...
The Treasury Department determined that the government did not have the legal authority to block the current payments by the company that has already received more than $170 billion in U.S. support.
Treasury Secretary Timothy Geithner has asked that the company scale back future bonus payments where legally possible, an administration official said Saturday.
Liddy said in his letter that "quite frankly, AIG's hands are tied" although he said that in light of the company's current situation he found it "distasteful and difficult" to recommend going forward with the payments.
In his letter, Liddy told Geithner, "We believe there will be considerably greater flexibility to reduce contractual payments in respect of 2009 and AIG intends to use its best efforts to do so."
"We cannot attract and retain the best and brightest talent to lead and staff the
AIG businesses, which are now being operated principally on behalf of the American taxpayers—if employees believe their compensation is subject to continued and arbitrary adjustment by the U.S. Treasury," Liddy said.
Sounds like they don't even respect us in the morning either. With 'change' like this, we won't have enough change to buy ass cream for all these reamings!