$2.4m due to be paid last week held back by US Treasury
AIG did not pay $2.4m in scheduled bonus payments last week after the US Treasury Department withheld permission, Reuters reports.
The news came from George Madison, the Treasury's general counsel nominee, in response to confirmation hearing questions.
He said AIG is still negotiating with its executives to reduce the $235m in bonus payments due next year.
The bonuses were not paid because AIG is still working with Washington compensation czar Kenneth Feinberg on a number of issues.
AIG declined to comment, and a Treasury spokesman did not immediately respond to questions on the matter.
