Obama anger over AIG bonuses

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Source: CCTV.com | 03-17-2009 14:27

U.S. President Obama has attacked insurance giant American International Group for paying out 165 million dollars in employee bonuses. AIG has received a 173 billion dollar taxpayer bailout.

U.S. President Barack Obama speaks about AIG bonus payments as he makes remarks to small business owners, community lenders and members of Congress, Monday, March 16, 2009, in the East Room of the White House in Washington. (AP Photo/Ron Edmonds)

Barack Obama, US President, said, "In the last six months, AIG has received substantial sums from the US Treasury. I've asked Secretary Geithner to use that leverage and pursue every legal avenue to block these bonuses and make the American taxpayers whole."

Congressional lawmakers from both parties said many questions need to be answered. And, some AIG officials may need to be ousted.

They also said legislation may be needed to avoid a repeat and to retain public confidence in federal bailouts.

AIG agreed on Saturday to revamp its system for paying bonuses.

This was after the Obama administration objected to plans for hundreds of millions of dollars in such payouts. But AIG has said it had no choice but to pay out the 165 million dollars due by Sunday.