Geithner, Justice Dept. Join Hunt For AIG Bonus Money Recall

Treasury Secretary Tim Geithner said late yesterday that his agency is working with the Department of Justice to determine "what avenues" can be used to recoup taxpayer dollars used to pay AIG executive bonuses.

By Arthur D. Postal | Updated on March 17, 2009

WASHINGTON–Treasury Secretary Tim Geithner said late yesterday that his agency is working with the Department of Justice to determine “what avenues” can be used to recoup taxpayer dollars used to pay bonuses to executives of American International Group’s troubled Financial Products unit.

He also said that, in order to ensure taxpayers are compensated for any monies “we cannot recover,” the government will impose on AIG a contractual commitment to pay the Treasury from the operations of the company the amount of the [$165 million] retention awards just paid.”

Moreover, “we will deduct from the $30 billion in assistance an amount equal to the amount of these payments,” Mr. Geithner said.

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