Kenneth Feinberg, the Obama Administration compensation czar,would not answer questions today after widespread reports thatAmerican International Group will pay millions in bonuses nextweek.

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Mr. Feinberg said by e-mail that he was sorry but he would haveno comment concerning articles reporting that the company hadspoken to him concerning the bonuses.

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The payments of bonuses by the debt-ridden company, which hasbeen propped up by $180 billion in government loans and credits,has been a hot-button issue since March when it was revealed thenthat it was paying $165 million in retention bonuses to executivesat the financial products unit that brought it to the brink offailure.

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Mr. Feinberg, a Washington attorney and compensation expert whooversaw payments to families of 9/11 victims, was appointed lastmonth by Treasury to oversee compensation to executives at sevencompanies now receiving federal assistance.

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According to reports, AIG is seeking government approval for$2.4 million in performance bonus payments to 43 executives. Themoney is part of a larger bonus pool, most of it paid out inMarch.

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When the storm broke in March over the bonuses, the company saidthat it had a contractual obligation to pay them and they were aneeded tool to retain top talent. Eventually the company reportedthat at least $50 million of the $165 million distributed wasreturned by U.S. citizens, and foreign employees gave back money aswell.

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Strong calls for the return of the money had come from politicalleaders ranging from President Barack Obama to New York AttorneyGeneral Andrew Cuomo--who issued subpoenas seeking disclosure ofwhich executives were getting the bonus money and why as Congressthreatened retaliatory taxation.

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In May, AIG Chief Executive Officer Edward Liddy, who is due toresign his post, mentioned to a congressional committee that theTreasury Department was completing regulations to govern AIG'sbonus policy.

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AIG did not respond to a request for comment.

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