WASHINGTON, March 16 (Reuters) - The U.S. Treasury will modify a planned $30 billion capital infusion for American International Group to try to recoup hundreds of millions of dollars in controversial bonuses paid by the insurer, a Treasury official said on Monday.
The Treasury is finalizing the terms of its latest rescue package for AIG, announced on March 2, and will attach new provisions to it, the official said. The company was due to pay $165 million in employee retention bonuses by Sunday to employees of AIG Financial Products, the unit that made bad bets on toxic mortgages and credit default swaps.
The official, who spoke on condition of anonymity, said the Treasury was considering several repayment arrangements aimed at giving the money back to taxpayers.
So the U.S. Treasury will give AIG another $30 billion, and then from that $30 billion AIG will hand back to the Treasury the $164 million it paid in bonuses …. and we the American taxpayers are supposed to be stupid enough to believe that means we “got our money back” and none of our taxpayer money went into those bonuses? Unbelievable!
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