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Reports: AIG Gave Out $50 Million More in Bonuses


The American insurance company that caused outrage by paying out huge bonuses after receiving emergency money from the government, may have been even more generous than previously reported.

Published reports Saturday say documents submitted to the attorney general of Connecticut show AIG paid $218 million in bonuses. That is $53 million more than the insurance company previously reported.

U.S. Treasury Secretary Timothy Geithner has been criticized for his handling of the banking industry bailout.

President Barack Obama came to his defense in an interview with CBS news program 60 Minutes, to be broadcast Sunday, saying he would not accept Geithner's resignation if he were to submit it.

The U.S. Treasury Department is pushing ahead with new efforts to help banks. The government is expected to announce details next week of a program to subsidize private investors who buy devalued mortgage-related assets that are at the root of the financial crisis.

As part of the program, the Federal Deposit Insurance Corporation, which insures bank deposits, will provide loans to private investors to buy the so-called toxic assets.

The Treasury will also hire investment managers to run a public-private partnership, with the government providing matching funds for private investments.

The government hopes by unburdening banks of these toxic assets, they will be able to increase lending to consumers and businesses.

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