Aig, Bailouts | featured news

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.

Members of the House Oversight Committee lash out against the bailed out insurer, as it cautiously presents its restructuring plan.

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.

Attorney General Andrew M. Cuomo of New York said 15 of the top 20 bonus recipients in A.I.G.’s financial products division had returned their bonuses.