New York’s attorney general announced Wednesday that of the $85 billion loan the American International Group received from a government bailout, they are suspending payments to executives.
The suspended payments are supposed to come from a $600 million bonus fund, including $19 million in payments to AIG’s former chief executive, Martin J. Sullivan. It is unknown how much of the $19 million Sullivan has already received under the contract.
New York attorney general, Andrew M. Cuomo, says the suspension is in effort to prevent former AIG executives from receiving bonuses and compensation. Many of the potential executive recipients are those who undertook the financial transactions that almost led to the collapse of the company.