AIG to pay executive bonuses
American International Group Inc. is reportedly consulting with the Obama administration about its plans to pay $235 million in retention bonuses to employees at the AIG's financial products unit. The insurance giant's plans are now being presented before White House compensation czar, Kenneth R. Feinberg.
Geithner plans to reform derivatives
Treasury Secretary Timothy Geithner on Friday proposed his plan of bringing all over-the-counter derivatives under strict federal oversight in an effort to make the financial system more stable and eliminate risks. The Obama administration is seeking to make the OTC derivative markets fully transparent, with access to transactions available on a confidential basis to relevant regulators.
Chicago Businessman indicted in Ponzi scheme
David J. Hernandez has been formally indicted in connection with a $12 million Ponzi scheme and swindling nearly 300 investors according to the U.S. attorney's office. Hernandez, 48, allegedly used the money to pay himself and others, and start a sports-talk Web site. He is charged with four counts of mail fraud, according to the indictment.