AIG bonuses higher than previously reported: Official

March 22nd, 2009 - 3:44 am ICT by IANS  

Washington, March 22 (DPA) Bonuses paid to top officials at ailing insurer American International Group Inc (AIG) were higher than previously reported, a Connecticut state prosecutor told CNN Saturday.
AIG employees received $218 million in bonuses in recent months, higher than the $165 million previously reported, Connecticut Attorney General Richard Blumenthal told the broadcaster, citing information he’d gathered from subpoenaed documents.

The bonuses have caused a political firestorm in the US, given that AIG has received $200 billion in federal money in a series of federal government bail-outs since September.

AIG had previously announced plans to disburse up to $1 billion in bonuses this year, despite sharp losses in the ongoing financial crisis.

An AIG spokesman told CNN that Blumenthal’s numbers were incorrect because he was factoring in bonuses that had already been distributed in 2008.

Reacting to the national backlash against AIG, the US House of Representatives, the lower house of the legislature, passed a measure Friday that would levy a 90-percent tax on bonuses at companies that receive more than $5 billion in federal funds. The measure cannot become law until it is also approved by the Senate.

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