There was at least some chance that the furor over $165 million in bonuses paid to AIG (AIG) employees might die down this upcoming week. Because the insurance company got tens of billions of dollars in US aid, the American taxpayer essentially paid those bonuses.
Cooler heads have tried to make the point that it is time to move past AIG and put more energy into the larger process of fixing the financial and credit markets. The hope that Congress and the public might focus on the bigger picture may be derailed by the revelation that the bonuses paid were actually $218 million, according to the Connecticut Attorney General’s office.
According to the AP, “Connecticut’s attorney general says documents turned over to his office by American International Group Inc. shows the company paid out $218 million in bonuses, higher than the $165 million previously disclosed. ”
The news that the original estimate of the bonuses was too low should lead to more wasted days investigating whether earlier numbers were misrepresented by AIG or whether someone in the process of putting together the figures just didn’t add up the bonus amounts correctly.
Douglas A. McIntyre
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