Will AIG's huge bonuses turn taxpayers against further financial bailouts?

Updated

According to The Wall Street Journal (subscription required), "American International Group Inc. will pay $450 million in bonuses to employees in its financial products unit. That division was at the heart of AIG's collapse last fall."

Lawyers have told AIG (AIG) that previously agreed upon bonuses are legally binding.

If the government can do something about the planned bonuses, it should. It's not clear whether it can force AIG to stop that payouts, but AIG is now 80 percent owned by taxpayers.

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