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Maybe AIG and Blankfein should just team up to do God's work, because each week brings more proof that the bailed out giant mess of a company works in mysterious ways. AIG is trying to work out a plan to repay only $26 million out of the $45 million in 2009 bonuses it said it would return, by paying 2010 retention bonuses early if employees agree to have them cut by 10% to 15%, according to reports today.
The insurer, which is set to pay $195 million in retention bonuses to the employees of its AIG Financial Products unit in March, believes that cutting bonuses to return bonus money they owe in the first place will somewhat appease the ongoing outrage. (Still yet to be explained is what these employees are actually being paid bonuses for doing. Perhaps it's some sort of medal of recognition for time served at the country's most-loathed company?)
Moving early to pay bonuses comes in handy also as on January 27, the House Oversight and Government Reform Committee will hold a hearing about the New York Fed's role in limiting (erasing?) disclosure about AIG's payments to counterparties- most specifically Goldman and SocGen.
The all star lineup for the hearing include Geithner who was NY Fed's president at the time, and former Treasury Secretary Henry Paulson.
AIG Seeks Payment In Bonus Changes [WSJ]