AIG documents show higher total for bonuses
Bonuses 'showered like confetti,' says Connecticut attorney general
Last Updated: Saturday, March 21, 2009 | 11:57 AM ET
CBC News
The attorney general of Connecticut says he's asking insurance giant American International Group Inc. why documents appear to show the company paid $53 million US more in bonuses to its financial products division than reported earlier.
Richard Blumenthal said Saturday he has seen documents showing AIG paid $218 million US in bonuses to employees in a division blamed for much of the company's troubles, not $165 million as previously disclosed.
The news comes as the U.S. government explores ways to cut aid to the company and recoup some of the insurance firm's controversial bonuses.
Blumenthal said the higher number was tallied from documents that AIG turned over to his office late Friday after a subpoena was issued.
Bonuses were "showered like confetti" on AIG employees, he said.
Members of the U.S. Congress and others have expressed outrage over the bonuses paid to employees — most of them in the financial products division — because AIG has been granted billions in federal bailout money.
Last Tuesday, New York Attorney General Andrew Cuomo said AIG paid bonuses of at least $1 million US to 73 employees. The tab for government loans and cash infusions totals $170 billion.
On Thursday, the House of Representatives passed legislation to try to recoup the payouts. The measure would slap a 90 per cent tax on any bonuses received in 2009 by top executives at rescued companies.
With files from the Associated Press
