By Illinois Radio Network
Washington D.C. – U.S. Sen. Dick Durbin (D-Ill.) says he's aghast that bailed-out insurer AIG is giving bonuses to its executives. AIG has gotten more than $170 billion in federal rescue funds, and is paying $450 million in bonuses to executives. Durbin says this is not how things are supposed to work in the real world. Where he says bonuses are supposed to go to executives and employees of successful businesses. Not firms that would be out of business if not for taxpayers.
Durbin says he doesn't know if anything can be done to recover the money, payment of which the company says is in accordance with contractual obligations to the beneficiaries. Durbin says Congress has tried in the past to recover bonuses paid by bailed-out firms, but hasn't done a good enough job. AIG reported losses of $61.7 billion in the fourth quarter, the largest corporate loss in history.
