The Journal is now reporting that the Treasury is perhaps going to hold up that new $30 billion infusion until AIG rescinds those bonuses.
Quoting the Journal …
Monday afternoon, a White House official said the Treasury Department will use a planned $30 billion infusion into AIG to compel the company to repay the bonuses promised to employees of its financial-products group, which is responsible for selling the exotic financial instruments that brought the company to near-collapse.
The infusion, announced March 2, won’t be finalized until the company and the Treasury work up repayment options, the official said.
