AIG has to pay back bonus money!

Tim Geithner, The Treasurey Secretary said on tuesday that AIG will pay back the $165 million dollars in bonus money they just paid out.  This is what Tim Geithner had to say”

“We will impose on AIG a contractual commitment to pay the treasury from the operations of the company the amount of the retention awards just paid,” Geithner wrote. “In addition, we will deduct from the $30 billion in assistance an amount equal to the amount of those payments.”

Bascially, what this is saying is that they will be paying back more because they actually gave out these bonuses as a penalty. If the U.S. was what AIG needed to stay afloat then how is it possible that they have money to give bonuses. Like President Obama says this is defnitely an “outrage.”

Hopefully, this situation gets resolved soon.

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