This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7960459.stm

The article has changed 4 times. There is an RSS feed of changes available.

Version 0 Version 1
Top AIG bosses 'to repay bonuses' Top AIG bosses 'to repay bonuses'
(about 1 hour later)
Nine of the 10 executives who received top bonuses from US insurance giant AIG have agreed to return them, New York's attorney general says.Nine of the 10 executives who received top bonuses from US insurance giant AIG have agreed to return them, New York's attorney general says.
Andrew Cuomo said he hoped to recoup $80m (£55m) of bonus payments - which amounts to about half of the $165 million paid by AIG on 15 March.Andrew Cuomo said he hoped to recoup $80m (£55m) of bonus payments - which amounts to about half of the $165 million paid by AIG on 15 March.
The US rescued AIG with bail-out funds totalling $170bn since September 2008.The US rescued AIG with bail-out funds totalling $170bn since September 2008.
AIG's decision to pay bonuses despite being bailed out by the government had sparked widespread outrage in the US.AIG's decision to pay bonuses despite being bailed out by the government had sparked widespread outrage in the US.
The troubled insurer reported a loss of $61.7bn for the last three months of 2008, the biggest quarterly loss in corporate history.The troubled insurer reported a loss of $61.7bn for the last three months of 2008, the biggest quarterly loss in corporate history.
"A number of them have risen to the occasion and I applaud them," Mr Cuomo - who is investigating AIG as well as several other financial institutions - said of the executives who had offered to give up their bonuses. The bonus debacle had prompted the approval of a bill by the US House of Representatives to impose a 90% tax on bonuses awarded by companies bailed out by the US government.
AIG's bonus debacle had prompted the approval of a bill by the US House of Representatives to impose a 90% tax on bonuses awarded by companies bailed out by the US government.
But President Barack Obama said such a measure would be unconstitutional.But President Barack Obama said such a measure would be unconstitutional.
The announcement that much of that money is now being returned seems likely to ensure that the bill never reaches his desk, says the BBC's Richard Lister in Washington.
Bonus tax?
Mr Cuomo said 15 of AIG's top 20 bonus recipients had agreed to return their payments, which he estimated to total around $30m.
"A number of them have risen to the occasion and I applaud them," Mr Cuomo - who is investigating AIG as well as several other financial institutions - said of the executives who had offered to give up their bonuses.
He added that he expected to recoup all of the bonuses paid to American citizens working for AIG, which accounts for around half the $165m the company paid out.
Mr Cuomo said he did not plan to release the names of the employees who have agreed to return the bonuses, suggesting there was no implied threat that if an employee refused to return their bonus, their name would be disclosed.
Bonuses ranging from $1,000 to more than $6m were paid to some 400 staff in the division handling the mortgage-backed assets at the heart of the financial crisis.
Seven senior employees were paid more than $3 million, while 73 members of staff received bonuses of more than $1m.