Misuse Of Bailout Money | featured news

Treasury: 17 banks overpaid execs while receiving billions in taxpayer-funded bailout money.

Some top finance firms that got federal aid also increased fringe benefits for their chief executives.

American International Group plans Wednesday to pay another round of employee bonuses worth about $100 million, said several people familiar with the matter.

The special federal paymaster is trying to persuade the American International Group, the insurance giant, to reduce a coming bonus payment of $198 million, but is running into legal hurdles despite rules curtailing bonuses at companies receiving assistance from the Treasury.

Troubled insurer asks Treasury to rule on several types of executive pay, most of which is owed to embattled derivatives division in March 2010.

American International Group is preparing to pay millions of dollars more in bonuses to several dozen top corporate executives after an earlier round of payments four months ago set off a furor.

Chief executives of some banks that received federal money, including Bank of America Corp, Morgan Stanley and Regions Financial Corp, used company jets for their personal use, the Wall Street Journal reported on its website.

Bank of America Corp has been paying millions in bonuses in order to lure talent and retain investment bankers the company views as vital, the New York Post reported, citing sources.

A top executive at troubled insurer AIG publicly resigns and says he will donate his entire bonus to charity.

Federal Reserve Chairman Ben Bernanke told Congress today he wanted to sue to stop insurance giant AIG from paying millions in bonuses, but was talked out of it.