Prior to handing out bonuses this time, AIG is going to ask permission from Obama’s administration. Specifically, AIG will run their bonuses plan by Kenneth Feinberg — the person in charge of corporate compensation for those companies that have received bailout funding.

Even though AIG isn’t required by law to ask for permission regarding these bonuses since they were earned prior to AIG receiving bailout funding, the company hopes that this show of good faith will end the public outrage before it begins.

In total, AIG has received more than $175 billion dollars in United States federal government bailout funding. In total, it’s estimated that AIG employees earned nearly $500 million in bonuses in 2008.

AIG Protests (Image: Flickr)

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AIG Asks Obama to OK Bonuses

After AIG executives were roasted for receiving scheduled bonuses, this sounds like a good idea by Morgan Stanley. According to multiple accounts, Morgan Stanley received a lot of help by the United States federal government during the recent financial crisis. Like with AIG, people around the country could have been up in arms with Morgan Stanley if reports indicated that the company took some of the bailout money and handed it to executives.

With specialties in investment banking, financial services and investment management, Morgan Stanley reported had more than $62 billion in revenue in 2008. Around the world, the company is estimated to have more than 45,000 employees.

Morgan Stanley stock was mostly unchanged following the SEC filing.

Morgan Stanley Building (Image: Flickr)

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Morgan Stanley Cuts Bonuses for Executives

Home for Sale (Image: Flickr)

The two companies, Freddie Mac and Frannie Mae, combine to finance approximately half of all mortgages in the United States. After massive financial troubles, each company is now run by the federal government. In recent months, they have been even more active – financing more than 60% of new mortgages.

Officials with Freddie Mac and Frannie Mae insist that the bonuses are needed to keep employees with the company. Without their key employees, officials say that the businesses would have no chance of turning around. In addition, officials claim that the bonuses are just a small drop in the bucket for many of the employees who have lost millions upon millions of dollars when the stocks of the two companies plummeted by more than 95%.

Of the $210 million in bonuses, approximately $150 million of it is planned to be distributed in 2009.

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Mortgage Workers Get $210M in Bonuses

Banks give back money (Image: Flickr)

The main motivation for banks to repay the federal government is due to the fact that the feds are now taking a closer look at companies that received bailout money and are instituting harsher restrictions on how that money can be spent. A big reason for the tougher stance by the feds is due to the public outrage following the information that AIG gave more than $160 million in bonsuses to their employees despite receiving more than $100 billion in bailout money.

The five banks that repaid the government and now won’t be held to the tight restrictions were Old National, Iberiabank, Centra Financial Holdings, Signature Bank of New York and Bank of Marin. Those banks are located in Indiana, Louisiana, West Virginia, New York and California, respectively.

Of the $700 billion bailout plan, approximately $200 billion of it has reached the banking industry so far. Many banks are currently in the process of asking for more bailout money.

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Feds Receive $353 Million from Banks

Claiming that the losses were due to mismanagement, Freedom Watch is going after Edward Liddy, the current CEO of AIG, and three former CEO. Neither Liddy nor the three former AIG CEOs (Robert Willumstand, Martin Sullivan and Maurice Greenberg) have commented on the lawsuit.

This is far from the first time AIG has found itself in legal trouble. After reports came to light that AIG employees received more than $160 million in perks and bonuses after the United States federal government bailed out the company to the tune of nearly $200 billion, a national firestorm of negativity has ensued. Not only have protesters gone to the houses of AIG executives, Congress has attempted to pass legislation to put a 90% tax on money given out after the bailout.

Recently, a number of AIG employees agreed to return their bonus money. However, don’t expect the national anger to subside anytime soon. While this Freedom Watch lawsuit might not have any legs, the American public will make sure that the heat stays on AIG.

Another AIG Protest (Image: Flickr)

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Freedom Watch Files Lawsuit Against AIG

Andrew Cuomo Takes Back AIG Bonuses (Image: Newcom)

In total, multiple reports indicate that more than 350 AIG employees were given bonuses. More than six dozen of those employees received a bonus of at least $1 million. The largest bonus was reportedly worth nearly $7 million.

Cuomo also went on record to state that the most money that could be expected to be returned is approximately $80 million. Although Congress passed a bill that would impose a 90% tax on the AIG bonuses, President Barack Obama isn’t expected to sign that bill into law.

Going forward, Obama’s administration has stated that they will not stand for excessive bonuses being paid out by companies that have required bailout funding.

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AIG Executives Give Back $50 Million

Following a public outcry, it’s expected that the AIG executives will ultimately end up not seeing most of their bonus money. Going forward, the United States federal government says they will monitor bonuses closely for those companies that are receiving bailout aid.

Once arriving at the homes located in the state of Connecticut, the protesters read a note aloud and then placed the note in a mailbox of one of the AIG executives. That AIG executive, Douglas Polling, had decided earlier to not receive his scheduled bonus.

The approximately three dozen protesters were accompanied by photographers and reporters. In fact, there were reportedly more photographers and reporters on the scene than the number of protesters.

More AIG Protesters (Image: Flickr)

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Protesters Visit Homes of AIG Executives

AIG Sign - Source: Flickr

Although President Barack Obama has stated that he wants to make sure that bailout money simply isn’t going into the pockets of the top executives at companies receiving the federal money, AIG insists that they don’t have any other alternative in this situation. According to the company, management agreed to these bonuses in 2008 in an attempt to retain their top level employees.

The gigantic insurance company has been virtually destroyed by the national housing crisis and the poor national and global economy. Once regarded as the most lucrative insurance company in the world, the more than $60 billion it lost in 2008’s final quarter set an American record for the biggest loss in a quarter.

According to numerous reports, further bonuses may be scaled back now that the company has been bailed out by United States taxpayers. Some experts, though, argue that AIG needs to offer bonuses of this level to retain the employees who would be capable of leading the company out of their current financial ruin.

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AIG Gives Bonuses Totaling $165 Million