'Sun Worldwide'– AIG Pay Bonuses Despite Bailout…

March 29, 2009 - PRLog -- Sources close to “Sun Worldwide” suggest that the private fund is aghast at news that key employees at AIG Financial Products were paid bonuses totaling some $160 billion despite being largely responsible for the enormous losses its parent company has suffered.

AIG posted the largest quarterly loss, ever, for a US company recently when it said it had lost over $61 billion in the 4th quarter of 2008 thanks to the inept administrations of irresponsible trading by the London-based division.

AIG Financial Products wrote risky insurance contracts that provided protection for investors in the event that banks and large corporations defaulted on their bonds. The business was extremely lucrative until the credit crisis ensued and companies like Bear Stearns, Lehman Brothers and Fannie Mae either collapsed or were nationalized triggering “credit events”. These events, suggested the “Sun Worldwide” sources,  meant that AIG had to pay out the face value of the bonds the insurance covered or the value of the bonds set by auction.

“Sun Worldwide” recently warned of the moral dilemma that the US government would face when it emerged that the $160bn it has pumped into the ailing insurer was being paid to counterparties like banks and speculators.