AIG refuses to back down in bonus row with US government
Fallen insurance giant AIG, which was forced to beg US authorities for $170 billion to survive, has refused to hand over details of employees who received $165 million in bonuses from the financial products division - the operation which many see as the main culprit for the collapse in the US economy. It seems as though Gordon Brown is not the only government leader who has fallen foul of banking bonus payments although the AIG argument looks set to end up in court.
Pres Barak Obama has certainly hit the ground running as he looks to turn the US economy around and ensure that former fallen idols do not use taxpayer's money to cover substantial banking bonuses. There is no doubt we will hear Gordon Brown again suggesting that Barack Obama is following his lead when the facts are that no government around the world can afford to see taxpayer's money being paid in bonuses when taxpayers themselves are struggling to make ends meet.
While Barack Obama appears set to use the courts in his efforts to fight substantial bonus payments in the short to medium term, it would appear that Gordon Brown has no such options with Sir Fred Goodwin's pension payment for example apparently signed off by the authorities.
Share this..
Related stories
Have the Alliance & Leicester started a battle in the banking sector?
It has been revealed that the Alliance & Leicester, the popular UK bank, appears to have started something of a free for all in the current account market. The company is offering new account holders a £100 cash back payment (which would be paid within four months of opening an account), 6.5% interest and a 0% overdraft (within an agreed limit) for the first 12 months. This offer relates to the c...
Read MoreIs It Time To Ditch Private Healthcare?
As money becomes ever tighter more and more people are looking at ways to cut their costs and reduce their monthly outgoings. One such area which is catching the attention of many is health insurance, something which is very useful to have, but has no real value until you actually need it. So are people right to consider cancelling their health insurance plans?
In many ways this i...
Federation of Small Businesses in plea to UK banks
The Federation of Small Businesses (FSB) has today called upon UK banks to "return to their normal lending criteria and start playing their role as lenders with a large dose of modesty". This is the New Year message coming out of the business arena in the UK with UK banks still unwilling, and in some cases unable, to return to the lending criteria which was in place before the credit crunch. Th...
Read MoreRoyal Bank of Scotland insists bonuses will be paid
The Royal Bank of Scotland has today confirmed a loss of £1 billion at the halfway stage for 2009 and sought to clarify the situation regarding staff bonuses. Despite the fact that the bank made a loss in the first half there are many large "guaranteed" bonuses to be paid even though the bank is 70% owned by UK taxpayers and being propped up by the UK government in other ways.
If t...
Does your insurance cover you for snow related incidents?
As the UK population get to grips with the heaviest snowfall for nearly 20 years, the ABI (Association of British insurers) has stepped forward to suggest that members of the UK population check their insurance policies if they have been affected by snow. The ABI has specifically targeted travel insurance and car insurance which can in many circumstances offer significant cover for incidents relat...
Read More