AIG Execs Ordered to Testify in CT

They've had their day on Capitol Hill, and now A.I.G. executives may be headed before a Connecticut legislative hearing, too.

Attorney General Richard Blumenthal, along with state Senator Bob Duff (D-Norwalk) and Rep. Ryan Barry (D-Manchester) have issued subpoenas commanding several company officers, including CEO Edward M. Liddy.  The hearing is scheduled for Thursday, March 26.

"Now living off supersized taxpayer-paid bonuses, these A.I.G. employees have a moral and legal obligation to appear a this legislative hearing," said Blumenthal, in a press release. 

Since a key division of the company is located in Wilton, Blumenthal wants the executives to "disclose details about corporate compensation to employees as well as investment decisions by A.I.G. Financial Products Corporation involving credit derivatives and dealings that have led to market destruction."

The company Friday released information to the state on contracts that resulted in the payments of $165 million in bonuses. On Thursday, the Department of Consumer Protection subpoenaed AIG for the contract documents that guaranteed the bonuses to its employees.

However, the names of employees who received bonus money in the contract were redacted in the documents given to the state.

The Department of Consumer Protection will keep the subpoena open pending its investigation, according to a spokesperson for Gov. Rell.
The names of employees who receive bonuses could be required by the state in the future.

The bonuses came under fire because AIG has received $170 billion in federal bailout money.

"With this information, we will determine how the contracts were crafted and whether they violate any provisions of the Connecticut Unfair Trade Practices Act," Connecticut Governor M. Jodi Rell said in a statement.

The Department of Consumer Protection plans to review the contracts, to determine if the bonuses are in violation of that act.

Either way, Gov. Rell argued the bailout money was intended to stabilize companies, and not to be handed out as bonuses.

A.I.G. has not indicated if executives will honor the subpoenas ordering their appearance in Connecticut next week.

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