2009 0324 - CNN - AIG changes story on state payments. The insurer now says $9.5 billion of bailout funds went to municipalities -- down from an estimate of $12.1 billion a week ago. - [link]
AIG now says that municipalities holding guaranteed investment contracts received $9.5 billion in payments from the company last fall.
That's $2.6 billion less than the estimate AIG provided March 15.
A spokeswoman said the company published the earlier, higher number mistakenly, due to an "administrative error."
The GIA figure wasn't the only number that changed in the revised AIG accounting. The share of federal funds attributed to paying off maturing debt and "other" uses rose to $15.2 billion, from $12.5 billion in the earlier estimate.
A spokeswoman said the company made the change last week after it learned an administrative error had been made in calculating the sums that had been paid to the states.
"The basic answer is that the money got put in the wrong bucket," she said.