Obama Administration Will be "Creative" in Finding AIG Solution, Summers Says

The Obama administration will try to be "creative" in finding a solution to the AIG bonus fiasco, the White House's economic adviser said on Tuesday.

Speaking on CNBC, White House National Economic Council Chairman Lawrence Summers said the administration will explore all options to recoup some of the $165 billion AIG bonuses that have been paid out.

"We're open to all different ideas" on AIG," he said, having earlier called the situation "outrageous."

News that retention bonuses totalling $165 million were paid out to executives at AIG Financial Products - the branch largely responsible for putting the insurance firm on the brink of bankruptcy - has caused an uproar given that AIG has received more than $170 billion in federal aid.

President Barack Obama has already said his administration will pursue all legal avenues possible in order to recoup some of the money.

By Stephen Huebl and edited by Sarah Sussman
©CEP News Ltd. 2009