I'm not sure if it's amusing or angering when companies bailed out with tax payer money decide to pay six-plus figures in bonus salaries to their upper echelon employees. Aren't they receiving the funds in the first place due to irresponsible behavior and lack of judgment... They sure learned.
Everyone is up in arms (including Steven Colbert with a pitchfork) over the recent revelation that AIG, the financial institution that received one of the largest allocations of TARP money, paid out $165 million in bonuses. The company has refused to release the names of these employees due to fear of public reprisal of violence. This is some scary shit.
Edward Liddy, the company's CEO, said he is attempting to cooperate with federal lawmakers in order to have these funds returned. Right now Congress is trying to pass a law that would require all companies receiving bail out cash to pay a 90% tax of such payment if it is used in the same fashion as AIG. Such a law would only apply to 2009 allocations.
Unfortunately, what most people don't know, is that back in the end of 2008, Meryl Lynch gave close to $3.5 billion (no, that is not a typo) in bonuses, making AIG look like they're passing around chump change. According to a FoxNews blog, because the transaction occurred last year, the government will most likely not be able to claim any funds from the firm.
I guess we'll just have to see what happens.
By Justin Ellis
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