New findings suggest AIG executive bonuses were larger than previously thought

A senior United States official has stated that the US insurance firm American International Group (AIG) has paid out US$218 million in bonuses to its executives, after receiving over $180 billion in federal aid from the government. The number is higher than the earlier figure of $165 million that was reported previously.

According to documents obtained by a subpoena by Richard Blumenthal, the Connecticut attorney general, the bonus payouts were 32%, or $53 million, higher than the original number that was reported for most of the week. The documents also say that 73 people received bonuses of at least $1 million, and five were given over $4 million.

U.S. Postal Service running out of money

Tensions are running high at the U.S. Postal Service as it faces an enormous budget shortfall. Even after announcing it was cutting 3,000 jobs, the beleaguered government agency is still quickly running out of money.

Postmaster General John Potter asked the United States Congress for help on Wednesday, once again bringing up the possibility of reducing mail delivery from six to five days a week. The service reduction would save approximately $3.5 billion this year.

Another way to cut costs could include changes to how it pays for its employee retirement plan, which would save a further $2 billion. Closing small and rural post offices is another possibility that has been discussed.

US stock markets soar after bailout plan

United States stock markets surged on Monday, following an announcement by the government to give another bailout to the banks. All three major stock indexes posted gains of about seven percent at the closing bell.

Part of the rally was attributed to the US Treasury's announcement that it will buy up to US$1 trillion in toxic assets.

The Dow Jones Industrial Average gained 497.48 points, or 6.84%, to a level of 7,775.86, while the Nasdaq Composite soared 98.50 points, or 6.76%, to 1,555.77 points. The Standard & Poor's 500 index jumped by 7.07% or 54.37 points, reaching a level of 822.91.