AIG Bonuses: A Case for the Cash?

At first blush, American International Group (AIG) appears to have done it again with plans to issue $165 million in bonuses to executives in its financial products business, the unit that singlehandedly made it rack up record losses. Understandably, everyone from President Barack Obama to New York Attorney General Andrew Cuomo has expressed outrage over the notion of paying anything to AIG's derivatives traders. Obama has even told Treasury Secretary Tim Geithner to take every legal route to block the payments. (Hard to imagine taking the U.S. President to court when you're 80%-owned by taxpayers.)

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