Aig, Misuse Of Bailout Money | featured news

American International Group plans Wednesday to pay another round of employee bonuses worth about $100 million, said several people familiar with the matter.

The special federal paymaster is trying to persuade the American International Group, the insurance giant, to reduce a coming bonus payment of $198 million, but is running into legal hurdles despite rules curtailing bonuses at companies receiving assistance from the Treasury.

Troubled insurer asks Treasury to rule on several types of executive pay, most of which is owed to embattled derivatives division in March 2010.

American International Group is preparing to pay millions of dollars more in bonuses to several dozen top corporate executives after an earlier round of payments four months ago set off a furor.

A top executive at troubled insurer AIG publicly resigns and says he will donate his entire bonus to charity.

Federal Reserve Chairman Ben Bernanke told Congress today he wanted to sue to stop insurance giant AIG from paying millions in bonuses, but was talked out of it.

Attorney General Andrew M. Cuomo of New York said 15 of the top 20 bonus recipients in A.I.G.’s financial products division had returned their bonuses.

As administration prepares to unveil economic plan, some of its economic officials react coolly to Congress's efforts to punitively tax payments.

Documents turned over to the Connecticut attorney general show that American International Group Inc paid out over $218 million in bonuses, more than the previously disclosed $165 million, published reports said on Saturday.

Fallout from anger over AIG's bonuses is following Sen. Chris Dodd from Washington back home to Connecticut.