Focus on AIG Hartford This Week

 

Thursday, Mar 26,2009, 12:13:01 PM   Click:

Copyright: The Hour, Norwalk, Connecticut
Source: Hour, The (Norwalk, CT)
Wordcount: 421


Mar. 23--NORWALK - Connecticut lawmakers have made the insurance giant AIG Embattled and its relationship to labor law, the main topic of discussion this week in Hartford.

Two hearings are held next week at the state Capitol, one of which will allow legislators to amend the Wage Act of Connecticut, AIG, which was partly responsible for why the bailed-out company has distributed more than 200 million $ in bonuses.

Organized by the House Republican Leader Larry Cafero, R-142, a hearing will be held Wednesday on Capitol Hill to amend the current law on wages. The state law allows employees to sue for twice the amount of wages due under contract - in this case, $ 330 million - as well as attorney's fees if the employer refuses to pay.

AIG Cafero said that the bonus can not be wages, and therefore is not subject to law. It proposes to integrate the businesses that received federal dollars to rescue the law, making them invulnerable to the double tax on wages.

"The law serves a very good effect against unscrupulous employers who withhold their salaries," said Cafero. "But AIG should not use this law as an excuse to pay the premiums for its officers."

Documents issued Friday showed AIG - which has received more than $ 182 billion in federal assistance - paid $ 218 million in premiums last weekend, more than 165 million dollars has already been released, "said Attorney General Richard Blumenthal, who issued a subpoena for documents relating to bonuses.

The Committee of state banks, co-chaired by Senator Bob Duff, D-25, has also issued subpoenas Friday commanding at least a dozen employees of AIG, including CEO Edward M. Liddy, to appear in court March 26.

"The Banks Committee Connecticut is well on its jurisdiction to issue subpoenas," said Duff. "Not only the CEO potentially use a Connecticut law, beneficiaries are residents of Connecticut and those entitled to the money taxpayers. "

Gov. M. Jodi Rell said that the office of the largest bonus AIG was given $ 6.4 million. The bonus of over $ 4 million were awarded to six while 66 others have received more than $ 1 million each. In total, over 400 people in the financial products division of AIG has received premiums Wilton, Rell said.

Blumenthal is also urging AIG executives to participate in hearings this week.

"They are citizens of Connecticut, and we have the right to hear from them what they were supposed to do in exchange for those outside, outlandish and outrageous payments," he said.

The Associated Press contributed to this story.



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