Kenneth Feinberg scrutinises executive bonuses at bailed out firms
President Obama's pay czar has called AIG's expected latest round of bonus payments "outrageous".
The comments of Kenneth Feinburg come as reports say the insurance giant will later on Tuesday pay out $100m (£63m) to its financial products division.
He said these bonuses were the result of old contracts, but by March they would be "a thing of the past".
AIG was bailed out with $182.3bn of US aid in 2008, and staff have already given back $39m of earlier bonuses.
Mr Feinberg is "insisting" that AIG workers repay a further $6.7m to $7m of previous bonus payments.
Senior Republican Senator Charles Grassley argued that the US administration had been outmanoeuvred and "AIG has taxpayers over a barrel".
Mr Feinberg oversees the pay deals of senior bosses at banks and other financial groups who have received financial support from the US government under the Troubled Asset Relief Program (Tarp).
His formal job title is special master for Tarp executive compensation.