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19 states launch AIG investigations

States seek a list of the employees who received bonuses and whether they were paid with federal money. Connecticut subpoenas the insurer for the information.

March 21, 2009|Bloomberg News

Nineteen states began an investigation of bonuses paid by American International Group Inc. as Connecticut subpoenaed the insurer and Congress took steps to recover the funds.

New Jersey Atty. Gen. Anne Milgram said she sent a letter to AIG Chief Executive Edward M. Liddy demanding a list of employees in the AIG Financial Products unit who received bonuses since September and whether they were paid with federal money. AIG provided a list to Connecticut on Friday and to New York Atty. Gen. Andrew Cuomo on Thursday.

New York-based AIG sparked a national furor by paying $165 million in bonuses last week after receiving a $173-billion federal bailout.

The U.S. House responded to public outrage Thursday by voting to impose a 90% tax on employee bonuses at AIG and other companies that get at least $5 billion in taxpayer bailout funds.

Milgram said she asked AIG to send her the information about bonus recipients and copies of their employment contracts within five days.

She was joined in the request by Arizona, Delaware, Illinois, Kentucky, Louisiana, Maine, Michigan, Mississippi, Montana, Nebraska, New Mexico, Ohio, Oklahoma, Oregon, Pennsylvania, Texas, Washington and West Virginia.

Separately, Connecticut subpoenaed AIG for information on the bonus recipients, amounts and contracts. AIG turned over the bonus information Friday, Connecticut Atty. Gen. Richard Blumenthal said.

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