Buried on Page 19: AIG Bonuses 4x Larger Than Previously Reported

Hat tip to Jack and Jill Politics

Now they tell us:

In a response to detailed questions from Rep. Elijah Cummings (D-Md.), the company has offered a third assessment of exactly how much it paid out in bonuses last year.

And the new number, offered in a document submitted to Cummings on May 1, is the highest figure the company has disclosed to date.

AIG now says it paid out more than $454 million in bonuses to its employees for work performed in 2008.

That is nearly four times more than the company revealed in late March when asked by POLITICO to detail its total bonus payments. At that time, AIG spokesman Nick Ashooh said the firm paid about $120 million in 2008 bonuses to a pool of more than 6,000 employees.

The figure Ashooh offered was, in turn, substantially higher than company CEO Edward Liddy claimed days earlier in testimony before a House Financial Services Subcommittee. Asked how much AIG had paid in 2008 bonuses, Liddy responded: “I think it might have been in the range of $9 million.”

“I was shocked to see that the number has nearly quadrupled this time,” said Cummings. “I simply cannot fathom why this company continues to erode the trust of the public and the U.S. Congress, rather than being forthcoming about these issues from the start.”

AIG spokesman Ashooh said the company’s revised accounting is the result of different wording of the questions asked by Cummings and POLITICO.

Aha. Semantics again.

Makes one wonder whether that difference in the bonus amount was used to put money under the table for another bank. Or whether AIG is going to have to revise itself one more time.

Krugman, Arianna, Amy Goodman, and Bill Moyers have been consistently saying that Obama is under the thumb of the same Wall Street ripoff artists that have gotten us all in this mess. I don’t get it; there is no method to this kind of madness.

Obama did have a roast beef dinner meeting with economics Nobelists Krugman and Joseph Stiglitz last week, but Krugman is reticent to reveal what occurred. He hasn’t even discussed it in his New York Times column. Progressive critics of the bailouts wish that they had been flies on the wall to hear what the conversation was like, but to revise the old saying, if those wishes were horses, even the foreclosed-upon would fly. I’m sure Obama turned on the charm, even through the nightmare scenario Krugman and Stiglitz drew for him, and heard them. However, I’m also sure that it was all that Obama did. He simply listened to them. He isn’t convinced. The bailouts and bonuses–above board and under the table–will continue under the auspices of Geithner and Summers. And the more pissed people will become. I just hope that when crunch time comes, Obama will know when to jettison the dead weight of recent history, or he may be find himself sloughed along with it.

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~ by blksista on May 6, 2009.

One Response to “Buried on Page 19: AIG Bonuses 4x Larger Than Previously Reported”

  1. U.S. Government should forfeit the AIG bonuses from those that received them!


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