Source: Xinhua

03-17-2009 10:44

WASHINGTON, March 16 (Xinhua) -- U.S. President Barack Obama said on Monday that his administration will stop insurance giant American International Group (AIG) from paying 165 million dollars of bonuses to its executives.

U.S. President Barack Obama (L) and Treasury Secretary Timothy Geithner arrive in the East Room of the White House in Washington March 16, 2009 to make  announcements on helping small business during the economic crisis.  (Xinhua/Reuters Photo)

"It's hard to understand how derivative traders at AIG warranted any bonuses, much less 165 million dollars in extra pay," Obama said at the outset of an appearance to announce a plan to boost small businesses loans.

"How do they justify this outrage to the taxpayers who are keeping the company afloat," the president said, adding that the insurer is in financial straits because of "recklessness and greed."

The president's remarks came as the financially strapped AIG, which Obama said has received "substantial sums" of federal aid from the federal government, was reported to be paying 165 million dollars of bonuses to its executives.