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Article: Bonus flap puts future bailout funds for AIG in question; Additional aid likely to come with strings attached: Observers.(American International Group Inc.)
- Article from:
- Business Insurance
- Article date:
- March 23, 2009
- Author:
CopyrightCOPYRIGHT 2009 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: JUDY GREENWALD
American International Group Inc. will have a much harder time obtaining more federal funds due to controversy stirred by its bonus program, but likely still would get the aid if needed, many observers say.
However, the flap about the bonuses and, to a lesser degree, the amount of AIG bailout money that has gone to foreign banks, is likely to cast a shadow on the property/casualty units that AIG plans to spin off under AIU Holdings Inc., a separate holding company.
A total of $165 billion in bonuses were paid to employees of AIG Financial Products Corp., a unit held largely responsible for the insurer's financial ...