The headlines may well scream that AIG (AIG)--the one financial company that absolutely cannot argue that it did not need a taxpayer bailout--is paying another $100 million in bonuses to folks in its controversial financial products division. But the payments represent a reasoned attempt to wind down the weary controversy and pay back the government.

Recall that the firm agreed to pay back about $45 million in bonuses last year, but only $19 million was actually paid. So the firm still owes $26 million. Most current employees agreed to accept less--and get it a bit earlier in the year--in order to facilitate a payback, which Kenneth Feinberg is rightfully insisting upon.

According to the Washington Post, Feinberg has his hands on the bonus process at the bank. It's unclear if the entire $26 million will be paid back. But I doubt we'll see a replay of the political angst we saw last year. For what it's worth, the financial product unit has been shrinking; it booked 16,000 derivatives trades at the end of 2009 compared with 44,000 before the bailout. 

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