New York Attorney General Andrew Cuomo announced yesterday that employees of American International Group have agreed to return $50 million of the $165 million controversial bonus money the company paid out.
Of the checks that went out on March 15, the attorney general said in a statement, "So far nine of the top 10 bonus recipients have agreed to give the bonuses back."
He said of the top 20 recipients, 15 have agreed to return the cash.
Mr. Cuomo said, "It bears noting that 47 percent of the $165 million pool went to Americans (approximately $80 million)."
Of the 53 percent of the money that went to employees who were not American citizens, much of it going to employees of the conglomerate's AIG financial products office in London.
That unit was responsible for the disastrous losses, which forced to company to give the U.S. government a 79.9 percent stake in the firm in exchange for a bailout package.
During a teleconference, Mr. Cuomo said he did not believe his jurisdiction extended to London.
Mr. Cuomo praised those at AIG who made the returns, saying, "I would like to say this to the individuals who have given the money back–You have done the right thing. You have done what this country now needs and demands."
"We are living in a new era of corporate and individual responsibility. I thank you for setting an example for the rest of the company."
While issuing his statement of thanks, Mr. Cuomo concluded by saying that his "investigation and security assessment continues."
The attorney general has said in the past that he was looking into whether the bonus awards were a fraudulent process because the company was aware that its finances did not support them.
Edward Liddy, AIG's chief executive officer, has said that he found the bonuses were distasteful, but they were a contract agreement arranged before his tenure and they could not legally be cancelled.
Mr. Liddy has argued that the bonuses were necessary to keep good talent that would maintain the company's competitive position.
The awards were the subject of legislation in the U.S. House of Representatives, which has passed a measure now pending in the Senate to impose a 90 percent tax on the bonuses.
Senate Majority Leader Harry Reid, D-NV said the Senate will not take up the bonus legislation before that chamber begins its two week recess, which runs from April 3-17
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