The solution is simple, if there is the political will to resolve this. Tell AIG that they will 'voluntarily' tear up the contracts and go without these 'bonuses', otherwise the entire senior management team of that division will face criminal charges for fraud related to the outstanding derivitive issue. It is time to play hardball with these scumbags but I doubt we will see it happen. The money flow is going to continue until the public rises up and says enough. There will be no leadership in this. The politicos prefer to just let it go as long as they interpret that the public is going to put up with it.
If I was in charge of this mess, I would round up all of these crooks, including the ones that so far have been under the public radar, and have them all thrown in jail for fraud, and damn the consequences. In China these people would have been shot by now.
cheers!
mike