AIG vs Congress

aigvscongress

This has been a hot news recently! And being a BBA student I should post something about business related issues.

~Basically~
US Federal Reserve lends AIG 170 billion of taxpayers money.
AIG paid 165 Million of Bonus

“Of the 418 employees who received bonuses, 298 got more than $100,000, according to the New York attorney general, Andrew M. Cuomo. The highest bonus was $6.4 million, and 6 other employees received more than $4 million. Fifteen other people received bonuses of more than $2 million and 51 received $1 million to $2 million.” – NewYork Times

Edward M. Liddy (CEO of AIG) defends was the bonus was part of the employee contract, it was before the finical crisis. They thought it was reasonable before to use 165 million of the 170 billion given to them.

Currently Mr. Liddy is asking Bonus Recipients To Give Back Half

In some sources it said that the government can just give those bonus a high tax rate like 90%~

This is like how Citigroup received $45 billion in government bailout funds and the executives wanted to spend $50 million corporate jet but later given the pressure of the public they scrap their plans for the plane.

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5 thoughts on “AIG vs Congress

  1. yumyu March 21, 2009 / 4:19 pm

    If you are a BBA student, then you should be in mgmt wing most of the time? You should see me there, since most of my classes are in there.

  2. balance March 21, 2009 / 5:58 pm

    @yumyu

    My schedule this term was like all late/afternoon class lol

    monday 1pm-10pm
    tuseday 7pm-9pm
    thursday 5pm-10pm

    I move all around campus lol

    I go to like library most of the time to study, quite area is nice actual makes me focus. SWing to eat/study/surfing online better connection there O_o Library connection is better now but some spots still suck.

    Did you take your graduation photos? Taking mine this tuesday 😀 (next week is the last week)

  3. yumyu March 21, 2009 / 8:52 pm

    No wonder, my schedule:
    tues 12-2
    wed 9-3
    thurs 9-2
    First time having 2 morning classes.

    I never stay at school. I only go to school for classes. It is such a waste of time for me to stay at school when I could have used to time to get back home. I hate taking the bus.

    I took my grad photos last semester to get it over with earlier.
    So you are in your 4th year?

  4. balance March 21, 2009 / 9:03 pm

    Ya I’m only there for class as well, don’t go to campus just to study lol but some of my friends does, well to the St. George Campus. But only probably I have is I get distracted very easily at home… I actually need to shut of my computer to get my work done -_-”

    Ya taking the bus is a waste of time, I hate my tuesday class go there for two hours only…

    Ya its my last year but still need three more course for my CA requirement so going to take two in summer. Gay how MGT charge you 2K for two mores and 5K for two courses +

  5. yumyu March 21, 2009 / 9:34 pm

    @balance: I know, it sucks with flat fee. If you are in your fourth year, then have you ever seen me in any of your classes like in the earlier years? lol

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