AIG bonuses may have been higher

Connecticut Attorney General Richard Blumenthal calculated the new figures for bonuses paid out by the embattled American International Group after receiving documents from the company Friday, the Hartford Courant reported.

The company was quick to reject Blumenthal's number, asserting that the bonuses amounted to the previously disclosed total of $165m.

AIG spokesperson Joseph Norton said that the company's CEO, Edward Liddy, had fully explained the bonuses to Treasury Secretary Timothy Geithner.

Mr Liddy said in his correspondence to Mr Geithner that a payment under the retention program was made in December before this latest March payment," Norton said.

"At this point, not having seen what Mr Blumenthal said, we believe that's what he is referring to. The March payments were $165m, not $218m."

Blumenthal told the newspaper he was not referring only to bonus payments made in March.

"We've not only added the numbers, but the company has given us documents that have the number at $218m," Blumenthal said.

"Some of that total is from earlier bonuses, but the main point is all of it seems to be out of taxpayer funds... Whether the payments were made in December or March seems to be beside the point. The total that was disclosed so far was $165ms."

In a legal document, AIG said "about $55m of retention pay was previously paid around December" while another $93m was scratched "because of losses at the company," according to the Courant.

The federal government has already pumped over $170bn of taxpayer money into AIG.

- AFP