Federation of Connecticut Taxpayer Organizations

March 24 2009

Susan Kniep, President
The Federation of Connecticut Taxpayer Organizations
Website: http://ctact.org/
Email: fctopresident@aol.com
Telephone: 860-841-8032

http://www.courant.com/news/politics/hc-aig-blumenthal.artmar21210213,0,3417224.story

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BANKING COMMITTEE INVESTIGATIVE HEARING

THURDAY, MARCH 26, 2009, 1:00 PM

LEGISLATIVE OFFICE BUILDING � RM 2B � HARTFORD, CT

Banks Committee, Phone: 860-240-0410

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Legislature, Blumenthal Issue Hearing Subpoenas To AIG Employees

By ERIC GERSHON and LYNN DOAN | The Hartford Courant , March 21, 2009

The state legislature and Attorney General Richard Blumenthal issued subpoenas Friday to 11 AIG employees or former employees with Connecticut residences, all in Fairfield County, ordering them to appear at a legislative hearing on Thursday. A subpoena was also issued to AIG Chief Executive Edward M. Liddy.

The lawmakers said testimony from employees of AIG's Wilton-based Financial Products unit would help them craft legislation pertaining to regulation of the securities industry, hedge funds and the mortgage industry, according to a statement from state Sen. Bob Duff, D-Norwalk, and Rep. Ryan Barry, D-Manchester, co-chairmen of the General Assembly's banks committee.

Among those the committee said it has subpoenaed were James Haas and Douglas Poling, both of Fairfield, and Jonathan Liebergall of New Canaan, all current AIG executives whose names have been in media reports this week. It was not clear whether all of the others subpoenaed still work for AIG. The Courant is not publishing a complete list out of concern for the safety of those whose names have not alreay been widely disseminated.

The names of people subpoenaed were available to state officials based on public records and press accounts, although state officials did not say which records they searched. Several of those included in the subpoena had been political contributors to Sen. Christopher Dodd.� Continued �

http://www.courant.com/news/politics/hc-aig-blumenthal.artmar21210213,0,3417224.story

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AIG Employees Will Return About $50 Million of Bonuses

By LIZ RAPPAPORT and LIAM PLEVEN

Wall Street Journal, March 24, 2009

New York Attorney General Andrew Cuomo said late Monday that 15 of the top 20 recipients of $165 million in retention bonuses from American International Group Inc.'s Financial Products unit have agreed to give back their bonuses -- amounting to in excess of $30 million in cash. Mr. Cuomo's office said, in all, AIG FP employees agreed to return about $50 million in bonuses thus far.� "I applaud all the AIG employees that are returning the bonuses," said Mr. Cuomo, though he acknowledged that, for some, returning the bonus was more a response to public outrage than atoning for a sin. He said many employees "had nothing to do with the meltdown in the financial products division," but were trying to "do the right thing."� Mr. Cuomo added that doesn't intend to reveal names of people who return bonuses, but maintained he hadn't decided whether to disclose those who keep them. http://online.wsj.com/article/SB123784730479718425.html

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AIG Bonuses Were Actually $218 million, not $165 million

By� Christopher Keating, Hartford Courant, March 21,2009

The highly controversial bonuses at the AIG insurance company were actually more than $50 million higher than originally announced, Attorney General Richard Blumenthal said Saturday morning.� The AIG bonuses were $218 million, not $165 million, he said. That number was determined after Blumenthal's office received documents from the embattled insurance giant on Friday.� But AIG says that Blumenthal is confused and that the bonus amounts had already been disclosed.

Joseph Norton, an AIG spokesman, said that AGI's chief executive, Edward M. Liddy, had explained the bonuses previously to U.S. Treasury Secretary Timothy Geithner.� "Mr. Liddy said in his correspondence to Mr. Geithner that a payment under the retention program was made in December before this latest March payment,'' Norton said Saturday. "At this point, not having seen what Mr. Blumenthal said, we believe that's what he is referring to. The March payments were $165 million, not $218 million."

But Blumenthal responded that he never said that the March payments were $218 million.�� "We've not only added the numbers, but the company has given us documents that have the number at $218 million,'' Blumenthal said in an interview from his office Saturday. "The total is $218 million, not $165 million. ... Whether the payments were made in December or March seems to be beside the point. The total that was disclosed so far was $165 million.''� Blumenthal added that his numbers are correct.� "There's certainly no double-counting,'' he said.

At AIG, 73 employees received bonuses of at least $1 million each, and the highest bonus was reportedly $6.4 million for an executive who lives at the end of a cul-de-sac in Fairfield. Many of those receiving bonuses work out of the AIG Financial Products division in Wilton in Fairfield County. Continued � http://blogs.courant.com/capitol_watch/2009/03/aig-bonuses-were-actually-218.html

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Connecticut Attorney General's Office

Press Release

BANKS COMMITTEE CHAIRS, ATTORNEY GENERAL ISSUE SUBPOENAS FOR A.I.G. EMPLOYEES

Several employees ordered to appear at hearing on Thursday, March 26

March 20, 2009

Hartford � State Senator Bob Duff (D-Norwalk) and Representative Ryan Barry (D-Manchester), co-chairs of the General Assembly�s Banks Committee, with Attorney General Richard Blumenthal today issued subpoenas commanding several A.I.G. employees, including CEO Edward M. Liddy, to appear at a legislative hearing on Thursday, March 26.

The committee is commanding testimony as well as original or copies of documents regarding the AIG Financial Products Corporation retention bonus plan and any related contracts or agreements. Continued � http://www.ct.gov/ag/cwp/view.asp?A=2341&Q=436630

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Connecticut Attorney General's Office

Press Release

Attorney General Demands AIG Provide Bonus Amounts,

Recipients, Other Information

March 19, 2009

Attorney General Richard Blumenthal announced today that his office has demanded that AIG provide his office a list of bonus amounts and recipients, as well as copies of contracts and other information related to their payment.

Blumenthal said that he will take steps to enforce the subpoena issued today by the Department of Consumer Protection, or others, if AIG fails to provide the information promptly.

"I have asked AIG to provide my office a complete list of bonus recipients and amounts, as well as related contracts and legal interpretations," Blumenthal said. "American taxpayers -- who own more than 80 percent of AIG -- have a right to this information, and I will subpoena the company to compel release if necessary. AIG must come clean to its owners -- the American people.

"I urge AIG employees to do the right thing and give back every penny. They do not deserve this money, and they did not earn it. http://www.ct.gov/ag/cwp/view.asp?A=2341&Q=436552

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Connecticut Attorney General's Office

Press Release

Attorney General's Statement On AIG Claim That CT Wage Law Forces Company To Pay Bonuses

March 17, 2009

"I have significant doubts about the validity of AIG's claims that they are required by Connecticut law to pay these outrageous bonuses.

"AIG is shamelessly shielding itself behind the Connecticut Wage Act -- a joke of a justification for squandering scarce taxpayer resources.

"We should use any and every well-founded legal weapon to recapture these baseless bonuses at AIG -- rewards for financial failure and economic destruction at the outrageous expense of taxpayers. Continued� http://www.ct.gov/ag/cwp/view.asp?A=2341&Q=436328