Financial Times FT.com

Summers ‘outrage’ at AIG bonuses

By Alan Beattie in Washington and Julie MacIntosh in New York

Published: March 15 2009 19:04 | Last updated: March 15 2009 21:27

President Barack Obama’s administration expressed outrage on Sunday at $165m of bonuses paid by the troubled insurance group AIG, as the company revealed that European banks had benefited heavily from its massive government rescue.

Lawrence Summers, Mr Obama’s senior economic adviser, said that AIG’s behaviour was “outrageous”. But he added that the administration’s ability to force the company to cut the bonuses was limited.

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