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Bonuses After Bail Out

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Leaders at AIG argued that they were obligated to pay bonuses to executives even after the company was bailed out by the U.S. government because of the company's contracts with these executives. Do you think this is a legitimate argument from an ethical standpoint?

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Any company bailed out by the government, including AIG, had no right to pay bonuses to their executives. This was one of the biggest problems with the biggest companies that were bailed out, and it created a situation where executives had to repay bonuses that were given to them. The problem with AIG was that once they were bailed out, the ...

Solution Summary

This solution discusses the AIG case, and focuses on any legitimate arguments that could be made, from an ethical standpoint. Includes 1 reference.

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America and Citibank
This assignment covers in-depth information reagarding the history of government bailouts of two companies, Bank of America and Citibank. It is interesintg to note the time frame over the years in which these banks have repeatedly asked for government funds. It provides a clearer picture of why these companies have had to have government bailout assistance. Most importantly it will give examples of the unethical issues and other concerns that have arisen since this last government bailout.

I will be doing my week 3 paper on Bank of America and Citibank. They received government (taxpayer) bailout money and have been giving ceo bonuses, raises, using personal jets, etc. I have started the paper, but it needs more work and research. I still need to include the following:

A better history of how the problem started (with reference)

What are they doing now that is unethical (with reference)

Thank you for your help!!!!

A better history of how the problem started (with reference)

The article that clarifies this assignment is "Some bailout banks hold onto JET Perks." This was reported in the SF Gate by the associated press (AP) New York 11:42 am PDT time on June 19, 2009. Here is a quote from the article "A number of executives that received bailout money have continued to use corporate jets for personal use despite controversy over such perks, according to a report Friday."
www.sfgate.com/cgi-bn/article.cgi

The article goes on to question unethical procedures by Bank of America and Citibank. Other major finances were contacted for their policies but did not respond.

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