Financial Products division staff have bonuses slashed

AIG remains in discussions with former employees of its financial-products unit as it attempted to cut $5m in retention payments from them before today’s deadline, Dow Jones reports.

AIG’s stated goal is to recoup $45m from employees at the financial products unit that was responsible for AIG’s problems.

"We continue to work on getting to that $45m figure," said Mark Herr, an AIG spokesman. "We're confident that we will get there."

Reuters said AIG was holding back $21m from retention bonuses but is paying out $46m to about 70 people, most of whom are former employees of the unit that was behind its near-collapse. It said the cuts may help AIG exceed a $45m target.

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