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AIG Said to Pay $450 Million to Retain Swaps Staff
Internal Administrator
Posted: Saturday, August 13, 2011
Joined: 10/12/2010
Posts: 5780


Posted: 1/28/2009 7:13:23 AM

By: Just pay

"Jan. 27 (Bloomberg) -- American International Group Inc., the insurer saved from collapse by government money after losses on credit-default swaps, offered about $450 million in retention pay to employees of the unit that sold the derivatives, according to two people familiar with the situation."

"The business was responsible for about $34 billion in writedowns since 2007 as the market value of swaps AIG sold to banks plunged amid the subprime mortgage market collapse."

"The payments bring to more than $1 billion the amount AIG has committed to keep its employees from leaving. The New York- based insurer in September took a federal bailout to avoid bankruptcy and is selling subsidiaries to repay the government. AIG said the program was disclosed before the government rescue, which is now valued at $150 billion."

Ok, so these guys lost 34 billion and now tax payers will give them a bonus of $450 million. What is wrong with this picture?

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=avGnUgGMu1q4


 

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