One of the few sensible articles on the AIG compensation issue appeared in the NY times (Link to Article)

The main points were that we should pay for the compensation because it is about honoring contracts, and that these individuals are the best possibility of steering AIG out of the rough seas. The issue of honoring contracts strikes a important note with anyone who understands the role of contracts in our ability to increase our standard of living (e.g., new institutional economists).

The most interesting development of the AIG compensation coverage, is that the AIG compensation coverage is more heavily covered than the news story of AIG listing the parties it paid with taxpayers money. (NY Times Article)

Here is the searchable counterparty list (See Link)

What a clever ruse. Have the public concentrate on 165 million in contractually obligated payments while a list of 10s of billions of dollars handed out to a range of banks (national and foreign) is released. I have more concern over the billions than the 165 million, but the media sells us on the importance of the 165 million because its a more profitable news story. Who wants to read about the details of 10s of billions of dollars and learn if they are prudent or not when we can read about the 165 million in bonuses which is easier to understand and bitch about.

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