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AIG is paying out more than $100 million dollars in bonuses. But, the company still owns taxpayers billions in bailout dollars. And many people are saying the government should step in and block the bonuses.
We’re looking at perspectives from CNBC, CBS News, The Washington Post, Fox Business News, and MSNBC.
So why can’t the government just step in? On CNBC, Larry Kudlow and an analyst agree the payout is outrageous and the government needs to do something about it.
KUDLOW: “I think the political nature of this backroom deal Jeffrey allows it to be changed. That is my view. Now it may not be changed.
SONNENFELD: Larry you’re right. They can stop this. This is a board of a dozen people, most of them were appointed by the government, large scale by the government, it’s 80 percent owned by the government. All they need to do it say no.”
On the other hand, CBS correspondent Chip Ried says although he is outraged, the president's hands are tied.
“The White House says the president is frustrated and angry over the bonuses, but aside from trying to shame AIG employees into giving some of the money back, they say, there’s little even he can do about it.”
But The Washington Post says financial czar Kenneth Feinberg is doing everything he can to get AIG to lower the bonus payments and avoid the sort of fallout that followed AIG's $168 million dollar payout last spring to the same set of employees.
“Government officials and AIG executives have been eager to avoid another spectacle like the one that followed spring's bonus payments. In addition, Feinberg has urged the insurer to find a way to scale back the pending bonuses.”
A FOX Business News analyst says in order to pay the money back, AIG needs employees and employees need bonuses.
“AIG is still a huge company and the nation and the world is still somewhat reliant on them, so in essence, they have to pay the money back, but they still need to keep the right people to help them do it.”
And AIG is saying don’t blame us for the big bonuses…employees are demanding them.
In fact, on MSNBC’s Morning Joe, a panelist points out some employees want even more.
“Not only do they have to pay out the bonuses, there are some people, because you know they’re reducing the bonuses somewhat, that are now suing. So you’re going to start seeing AIG employees suing AIG and therefore the taxpayers and the government for a larger piece of the pie.”
So should the government have more control over AIG? Do the employees deserve big bonuses?
Writer: Alyssa Caverly
Producer: Nathan Giannini