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AIG's 2008 Bonus Pool Rises to $454M

Company gives congressman the biggest figure yet

By Harry Kimball, Newser Staff

Posted May 5, 2009 6:04 PM CDT

(Newser) – Lawmakers and journalists keep pressing AIG about how much it paid out in bonuses in 2008, and the number keeps getting bigger, reports Politico. In response to a query from Rep. Elijah Cummings, the company now says it paid $454 million, about 4 times the figure it told Politico in March. The figure does not include $165 million in controversial retention payments to employees of a unit that caused AIG much of its financial grief.

“I simply cannot fathom why this company continues to erode the trust of the public and the US Congress, rather than being forthcoming about these issues from the start,” said Cummings. An AIG spokesman disagreed, citing the complexities of the bonus system and the semantics of the questions. “I think we’ve been pretty forthcoming," he said. "AIG is not a simple organization. We’re answering the question that we think we’re being asked.”

House Oversight Committee member Rep. Elijah Cummings, D-Md. (AP Photo)

AIG Chairman Edward Liddy. (AP Photo)

The sign for American International Group's Financial Products offices in Wilton, Conn. (AP Photo)

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COMMENTS

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Showing 2 of 2 comments

Mr.C

May 6, 2009 7:39 AM CDT

the last statement probably applies to a huge number of people in business. I am glad that some of this is coming into light. Hopefully there will be an Enron-scale downfall of some people and more transparent business practices will be put in place.

Jojo

May 5, 2009 11:24 AM CDT

They need to immediately retrieve the bailout money from them and close them down. Screw this! It's the biggest joke of the century! I cannot BELIEVE Bush started handing out billions of dollars with no accountability. It's beyond insane.

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AIG's 2008 Bonus Pool Rises to $454M

Company gives congressman the biggest figure yet

OTHER STORIES ON OUR RADAR

Congress • House of Representatives • AIG • bonuses • insurance industry • Edward Liddy • Wall Street bailout • Elijah Cummings • TARP

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US Bailout Funds Aided Foreign Firms

Watchdog says TARP spending aided France, Germany

Wall Street Bonuses Ripe for Tea Party Rage

Big finance could face populist pitchforks

AIG Execs Ignore Vow to Return Bonuses

Only $19M of promised $45M has been repaid

Obama Unloads on 'Fat Cat Bankers' Who 'Still Don't Get It'

Prez comes out firing in 60 Minutes interview

AIG Bailout Squandered Our Money, Trust

Geithner & Co. were afraid to ask Wall Street for concessions

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AIG's 2008 Bonus Pool Rises to $454M

Company gives congressman the biggest figure yet

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OTHER STORIES ON OUR RADAR

Congress • House of Representatives • AIG • bonuses • insurance industry • Edward Liddy • Wall Street bailout • Elijah Cummings • TARP

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

US Bailout Funds Aided Foreign Firms

Watchdog says TARP spending aided France, Germany

Wall Street Bonuses Ripe for Tea Party Rage

Big finance could face populist pitchforks

AIG Execs Ignore Vow to Return Bonuses

Only $19M of promised $45M has been repaid

Obama Unloads on 'Fat Cat Bankers' Who 'Still Don't Get It'

Prez comes out firing in 60 Minutes interview

AIG Bailout Squandered Our Money, Trust

Geithner & Co. were afraid to ask Wall Street for concessions

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