The Treasury will use a $30 billion infusion into AIG to force the company to repay all of the bonuses promised to employees of its Financial Products group, a White House official has told the Wall Street Journal.
This is a bit confusing. We hope this means that the White House is going to make not paying out million dollar bonuses to AIGFP employees a condition of receiving the $30 billion. We’re afraid this means that AIG will be allowed to “repay” the money spent on bonuses out of the $30 billion they get from the government, which is entirely backards.
The story continues to develop, of course.