American International Group chief exec asks employees to return at least 50% of their yearly bonus. AIG’s 2008 year end bonus request was for AIG employees who’s bonus was over $100,000. Keep in mind
Why would this information be on a banking blog you ask? Well a couple of reasons but mainly to give you confidence about the future of the economy and investment firms or regulation of. The first positive point coming out of this huge investment firms decision is the chief executive of the company, Edward Libby made this request. Edward was actually recently placed in AIG as CEO during the government rescue. So see, a little bit of your hard earned trillions of dollars bailout is coming back.
In the same news vein, you will see there is discussions around who in the government knew about the multimillion dollar AIG bonuses and who did not and when they knew about the bonuses and when they did not. Big names like Federal Reserve Chairman Ben Bernanke and Treasury Secretary Tim Geithner are basically being held accountable to oversee these ridiculously huge financial institutions like a hawk.