NEW YORK—Employees of American International Group Inc.’s financial products division sounded off behind closed doors as criticism mounted about millions in bonuses they received after the government bailed out AIG, the Washington Post reported Thursday.
According to a transcript of a March 23, 2009, conference call, employees of AIG Financial Products Corp.—the unit blamed for causing the near-demise of the New York-based insurance giant—said the bonuses last year were justified despite the company’s $180 billion taxpayer bailout, the newspaper reported.
The comments were made during the conference call with Gerry Pasciucco, who was hired to help dismantle the financial products unit.
“I will stand behind every action I have taken in this company from Day 1,” one employee said, according to the transcript that had all names removed.
“You made a commitment to us and we made a commitment to you. And for anybody to look beyond that, as the politics and the media are at the moment, is missing the point,” the transcript quoted an unnamed employee. “You can’t expect us to just roll over and ignore that commitment because there is a bunch of immoral bigots that intend us to do something different. It’s not going to happen.”
Despite the public and political backlash over the bonuses, the financial products unit employees said painting them as villains was unjust. They also said that the corporate leaders who drove AIG to the brink of collapse had left the company and that those who remained were helping unwind the financial products division to repay the bailout. In return, they thought their compensation was just, according to the transcript.
A second round of bonuses is slated to go to employees this month. AIG employees agreed to reduce the upcoming retention bonuses in favor of accelerated payments. AIG will pay about $100 million in bonuses to employees at the firm, the Washington Post reported.
A call placed to AIG seeking comment on the report was not immediately returned.







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