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Conn. Lawmakers Subpoena AIG Execs

Executives Expected To Answer Questions About Bonuses

POSTED: 3:20 pm EDT March 23, 2009
UPDATED: 7:46 pm EDT March 23, 2009

Connecticut lawmakers are in talks with insurance giant AIG to make sure 14 executives, including CEO Ed Liddy, comply with a legislative subpoena demanding they appear at the state Capitol on Thursday.

Members of the General Assembly's Banks Committee said the state may take legal action against AIG to get back the bonus money given to company employees, but that before they do anything, they want to make sure they have strong legal footing.

Sen. Robert Duff, co-chairman of the Banks Committee, said lawmakers are willing to negotiate with the employees over issues such providing adequate security.

But Duff said he still doesn't know how many of the employees, if any, will show up.

Legislators said they expect the employees to answer questions about the approximately $165 million in bonuses paid to employees of AIG's financial products unit, based in Wilton.

Liddy defended the company's actions before Congress last week. He said Connecticut Law required the bonuses be given. If they weren't, he said, the insurance company would have had to pay a penalty.

But Connecticut lawmakers said bonuses aren't wages and aren't protected in the same way under state labor laws and that contracts can always be re-negotiated, which is something many companies are now doing because of the sagging economy.

"We are engaged in active talks … and are preparing for the AIG visit on Thursday," Attorney General Richard Blumenthal said.

Duff said his committee has not yet been notified that any of the executives plan to fight the subpoenas in the court.


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