Taxpayer money going toward AIG bonuses

Bankers complained about mortgage relief for homeowners, but now we learn that AIG, which received $170 billion in federal bailout money intended on paying $165 million in bonuses and compensation to its officers.

Under government pressure, AIG said it would cut bonuses by at least 30 percent, but many in Washington are calling for legal action.

In a letter Sunday to Treasury Secretary Timothy Geithner, U.S. Sen. Russ Feingold called on the Obama administration to explore "legal options" to stop the payments.

"I write to ask why any bonuses would be legally required, given the company's abysmal performance," says Feingold, D-Wisconsin.

Rep. Barney Frank, D-Massachusetts, told Fox News that bailout recipients should follow stricter compensation rules, called on Congress to see if the payouts are "legally recoverable."

"We can't just violate legal obligations, I understand that," Frank said. "But I do want to find out at what point these legal obligations were incurred. Who said, and at what point, 'We're going to give these bonuses no matter what?' And I do think it's inappropriate for those people to stay in power at that company."

FOXNews

Widespread Backlash Over AIG Bonuses

ABC News - ‎44 minutes ago‎

By JOHN HENDREN The Obama administration had one word today for insurance giant AIG's plans to award senior executives hundreds of millions of dollars in bonuses and retention pay: "outrageous.

AIG's insistence on bonuses raises ire in Washington CNN

Administration, Lawmakers Turn Up Heat on AIG Over Bonuses Voice of America