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AIG bonuses 'higher than thought' | AIG bonuses 'higher than thought' |
(10 minutes later) | |
US insurance giant AIG paid out a total of $218m (£150m) in bonuses after accepting bail-out cash, according to a senior US official. | US insurance giant AIG paid out a total of $218m (£150m) in bonuses after accepting bail-out cash, according to a senior US official. |
Documents obtained by Connecticut's attorney general showed AIG's payout was $53m, or 32%, more than thought, the Associated Press reported. | |
Papers obtained by subpoena showed 73 people got more than $1m each while five received more than $4m, AP said. | |
The US has rescued AIG with a $170bn bail-out package since September 2008. | The US has rescued AIG with a $170bn bail-out package since September 2008. |
But revelations about the size of bonus payments made by the organisation since the bail-out was agreed have sparked a furious reaction among US lawmakers and the general public. | |
'Distasteful' | |
For much of the week the total amount AIG paid out in bonuses was reported at $165m. | For much of the week the total amount AIG paid out in bonuses was reported at $165m. |
But documents obtained by Richard Blumenthal, Attorney General of Connecticut, now appear to raise that figure by some 32%. AIG: QUICK FACTS Founded in 191930 million US policy holdersOperates in 130 countriesProvides insurance to 100,000 companies and other entities class="" href="/1/hi/business/7953869.stm">US lawmakers vote for bonus tax class="" href="/1/hi/business/7950452.stm">AIG chief asks for bonuses back | |
Connecticut was among 19 states demanding that AIG reveal details of bonuses paid to executives, in an effort to begin recovering the funds. | |
AIG has made no comment on Mr Blumenthal's findings. | |
But Mr Blumenthal said the newly-revealed number would "further fuel the justified anger and revulsion that people feel", AP reported. | |
Earlier this week US President Barack Obama described the bonus payments as an "outrage", before state legal figures and congressmen also weighed in. | |
Even AIG boss Edward Liddy - who underwent questioning by a congressional committee on the issue - has described them as "distasteful". | |
Reports from the US say that AIG executives are now living in fear of a violent public backlash. | |
Many are reported to have received death threats and have been advised to take extra security precautions even in areas around their homes. | |
Protesters are expected to drive past executives' homes on Saturday in an attempt to deliver letters highlighting the plight of ordinary families during the current recession. |