Like many other luxury resorts around the world, Amelia Island Plantation is feeling the effects of the recession. Last week, the 1,350-acre luxury enclave overlooking the Atlantic Ocean in northeast Florida filed a voluntary petition for Chapter 11 bankruptcy protection.

The resort is very dependent on its group business, which has dropped precipitously over the past year, according to Richard Goldman, its chief marketing officer. "More than half of our business is from corporate groups that hold conferences here," says Goldman. "The AIG effect has basically scared off folks -- even businesses that could afford to have meetings -- who are afraid to hold conferences at resorts." The "AIG effect" refers to businesses that have toned down lavish corporate events after the insurance giant was widely criticized for holding a conference at a luxury resort days after it received a cash infusion from Congress in 2008.

Kenneth Feinberg, the federal government's so-called pay czar, Tuesday denied media speculation that he was considering backing away from his decisions to slash compensation for top Wall Street executives at companies that received bailout money.

The Obama administration's special master for executive compensation has ruffled many feathers on Wall Street including American International Group (AIG). Its CEO, Robert Benmosche, has threatened to quit after being on the job for just three months because of pay restrictions Feinberg ordered. Others have claimed that the compensation guidelines will cause an exodus of top Wall Street talent to hedge funds and other companies not subject to government control.

There are two sides to every story, and sometimes three, four or five. An audit by the Special Inspector General for the Troubled Asset Relief Program (TARP) claims that the Federal Reserve Bank of New York allowed banks to get 100% of the value of complicated financial instruments that they had insured with AIG (AIG). The transactions involved over $60 billion. The full report was issued today.

The inspector general Neil M. Barofsky claims that the Fed "refused to use its considerable leverage" to force major banks to make concessions on the money they were owed as part of their relationships with AIG.

In an exclusive report in The Wall Street Journal, word emerged that AIG (AIG) CEO Robert Benmosche has said he may leave, largely because of what he sees as heavy-handed government regulation. He believes that the "pay czar" is hurting the insurance company's chances of bringing in new talent.

Benmosche has fought the government, his board and the public's perception of him at nearly every turn. He complained when government officials did not immediately approve his $10.3 million pay package -- perhaps forgetting that his predecessor Ed Liddy worked for $1.

More Coverage: AIG May Be Able to Repay U.S. After All

AIG (AIG) CEO Robert Benmosche has threatened to step down from the top job only three months after taking it as he struggles to deal with heavy government oversight and restrictions on pay to employees, according to the Wall Street Journal. Shares declined over 1.5% in premarket trading.

UPS (UPS), which is often seen as a bellwether to the economy, now expects growth in its volumes next year as the global economy gradually recovers, its CEO said on Wednesday, Reuters reported. UPS will hike shipping rates for 2010. He also expects the holiday season to be slightly better than estimated. Shares rose over 2% ahead of the bell.

Just how much taxpayers will recoup of the $700 billion set aside last fall to bolster companies hard hit by the credit crisis has been a matter of debate for more than a year. And because American International Group (AIG), the deeply troubled insurer that's 80%-owned by the U.S. government, has received such a big bailout, it has frequently been in the center of that debate.

Surprisingly, however, Moody's Investors Service (MCO) now says AIG may be able to pay back much more of that government aid than first thought. In fact, the credit-rating firm said in a report Tuesday that AIG will probably be able to repay all of the more than $180 billion it has received from taxpayers as well as buy back the government's stake in the company.

American International Group Inc. (AIG) posted its second straight profit Friday morning of $455 million, or 68 cents a share, as investment losses narrowed and catastrophe costs declined. But revenue fell at life and property-casualty operations. Shares fell over 10 percent ahead of the bell.

Starbucks (SBUX), late Thursday, reported higher earnings, saying adjusted profit of 24 cents per share, beating the 21-cents-per share estimate of analysts polled by Thomson Reuters mostly due to cost cutting measures. The coffee chain lifted its fiscal 2010 adjusted earnings guidance due to improving traffic in its stores. Shares jumped about 4 percent in premarket trade.

AIG (AIG) says it was profitable for the second straight quarter as its core insurance operations continue to stabilize after being bailed out by the government last year.

But investors' initial reaction to the report is negative, as AIG shares are down about 6 percent in premarket trading.

The insurance giant on Friday said its profit available to common shareholders totaled $92 million, or 68 cents per share. AIG lost $24.47 billion, or $181.02 per share, during the year-ago quarter when it was rescued from near collapse by the government.

Americans can be excused for thinking that executives at the seven companies receiving TARP bailout funds would see a pay cut this year, following yesterday's news that the U.S. Treasury's pay czar would slash executive compensation by as much as 90 percent starting next month.

But at least one chief executive among the troubled automotive and banking companies is getting a raise -- Fritz Henderson, who replaced Rick Wagoner as General Motors CEO in March. Henderson (pictured) will see his total annual compensation rise to nearly $5.5 million under guidelines imposed on top executives at companies that received funds under the federal government's bailout plans, Bloomberg News reported, citing a person familiar with the matter.

Of all the outrages to the American taxpayer in the last year, there is not one that can top the bailout of American International Group (AIG). After former Treasury Secretary Hank Paulson decided to let Lehman Brothers collapse 13 months ago in history's biggest bankruptcy ($639 billion), AIG -- with $1 trillion in assets -- was on the verge of toppling, too. Paulson saved it and we're all still paying.

How so? The threat of a downgrade of its debt repayment ability forced it to put up $14.5 billion in collateral against its Credit Default Swaps (CDSs) -- $14.5 billion that it didn't have. Rather than let AIG follow Lehman, Paulson decided to give it $85 billion for a 79.9 percent stake in the company -- a figure that eventually ballooned to $182 billion in U.S. taxpayer money.

The U.S. Special Master on Compensation, Kenneth Feinberg, is unleashing the public's furor over Wall Street compensation on 25 lucky executives. Of course, were it not for the grace of the American taxpayer, those companies would not exist.

So, the executives at those companies should be grateful to have their jobs. But until they can pay back that TARP bailout money, their companies are going to feel the burn. And their competitors will leap with joy as they hire their best people.

Headlines all over the media scream about the billions of dollars to be paid in Wall Street bonuses, as well as the push by government officials for AIG (AIG) to scale back its planned bonuses. We have heard the cry for compensation reform many times since the financial market crashed, but nothing seems to be done about it.

Can administration pay czar Kenneth Feinberg truly be effective in getting Wall Street pay in line, or is it really the responsibility of the shareholders? In actuality, the pay czar probably won't be able to do anything. But we do know that the people helping to pay for these bonuses are Main Street customers who are charged higher and higher fees and higher and higher interest rates. These are the same taxpayers who helped bail out Wall Street. Would these banks still be in business without the government's bailout money? Some probably wouldn't.

About 13 months ago, Goldman Sachs Group (GS) was days away from failing, according to Vanity Fair. Now it's on track to pay out more bonus money than ever. But Goldman's CEO Lloyd Blankfein's feelings are hurt because some people are angry that his 29,400 employees will get record bonuses in 2009. So Blankfein is floating the idea of giving $1 billion to charity to make up for the shocking bonus pool this year, according to The New York Times.

Is there any reason for Americans to be troubled by Goldman's generosity to its employees? If you consider that 15.1 million Americans are unemployed now and that billions in taxpayer money kept Goldman from collapsing, you can see why Goldman would have a PR problem. Some might think that some of that government money ought to have gone to people with a greater need than wealthy Goldman bankers.

Some of the companies making headlines today:

Johnson & Johnson's (JNJ) profit increased 1 percent in the third-quarter to beat analyst estimates despite competition from generics that hurt its sales. J&J earned $3.35 billion in the quarter, or $1.20 per share. Revenue fell 5 percent to $15.08 billion, just shy of expectations. Analysts polled by Thomson Financial were expecting earnings of $1.13 per share on revenue of $15.19 billion. Shares fell nearly 2 percent ahead of the bell.

Goldman Sachs (GS) shares this morning fell nearly 2 percent in pre-market trading after it earned itself a downgrade from banking analyst extraordinaire Meredith Whitney, who downgraded Goldman to Neutral from Buy. Jim Cramer doesn't necessarily agree she deserves the Street's cred. Goldman Sachs reports earnings Thursday.

Goldman Sachs Group Inc. (GS) faces a gargantuan public relations headache when it reports third quarter results Wednesday.

Investors will be angry if the New York-based bank fails to hit Wall Street's consensus of earnings of $4.24 per share on revenue of $11.02 billion, or if it does not give bullish enough guidance. The Obama administration and members of Congress, on the other hand, will be furious if Goldman Sachs' earnings are too good. They will wonder how much of its success was the result of the $10 billion in TARP funds that it received and has since repaid. Goldman also benefited from the government's bailout of American International Group Inc. (AIG).