Aig, Banks | featured news

British insurer Prudential PLC said Monday it will buy the Asian unit of bailed out American International Group Inc. in a deal worth $35.5 billion that will allow AIG to pay back some of the money it owes U.S. taxpayers....

Two Democratic senators on Thursday proposed legislation that would impose a one-time tax on bonuses paid to executives of companies bailed out with taxpayer money.

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

Treasury Secretary Timothy F. Geithner said the government rescued American International Group Inc. to prevent a "catastrophic" blow to the U.S. economy, not to save any of AIG's counterparties.

The AIG bailout isn't going away, much as Treasury Secretary Tim Geithner might like it to.

Five senior executives at American International Group told the insurer last week they may quit if their compensation was cut significantly by the U.S. pay czar, the Wall Street Journal reported on Sunday.

Federal regulators involved in the rescue of insurer AIG may have overpaid other banks when cutting a deal, a report says.

After just three months as head of American International Group, Robert Benmosche has threatened to leave his post as he struggles to deal with heavy government oversight.

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.

The company, reporting its first profit since 2007, said quarterly net income was $1.8 billion.