Stephen L. Blake, AIG's Head of Human Resources, to testify

 

Friday, Mar 27,2009, 1:50:30 PM   Click:

Copyright: The Hartford Courant, Conn.
Source: Hartford Courant, The (CT)
Wordcount: 496


March 26 - In a compromise on a very controversial issue, a senior officer of AIG will testify today before the Banking Committee of Parliament on the taxpayer, bonuses paid to employees in financial difficulties to the insurance giant.

The agreement ended days of negotiations after the Legislature subpoenas served on AIG CEO Edward Liddy and 13 employees who received bonuses. In the compromise, none of those who received subpoenas will be.

However, Stephen L. Blake, AIG of the head of human resources, provide information on premiums and how they are structured.

Mr. Blake is someone who can peel the layers of the onion, "said state Senator Robert Duff, D-Norwalk, which is co-chairman of the Committee on Banks.

AIG could have gone to court to block the testimony and to quash the subpoenas, but said that the legislature could have led to months of delay - a period of time after the parliamentary session is scheduled to adjourn on 3 June

"If there is no agreement, we are convinced that we would have prevailed in court," Attorney General Richard Blumenthal said. "The assignments will remain in force. We can enforce at any time. "

Citing security concerns, the AIG employees did not want to appear on a television audience of the state Capitol complex. Although the legislature has stated that any employee of AIG would be safe because the Capitol has its own police force, some were concerned that employees are publicly identified and photographed in the media - which can lead to harassment that AIG bonus recipients.


Blake, who works in New York City, was described by the legislator as a person who has direct knowledge of who received the bonuses and how they are structured the AIG Financial Products division of Wilton. It has been described as a "fact witness" and was chosen after other potential witnesses have been dismissed.

"We are the company based on good faith here," said Blumenthal. "If the witness does not, it betrays the spirit of our agreement."

AIG issued a statement Wednesday that said: "According to AIG of cooperation with Congress, federal and New York Attorney General, AIG will be tomorrow at the hearing before the Banking Committee. AIG employees to continue serve the American taxpayer by working diligently to wind AIG FP to 1.6 trillion dollars of business portfolio and to reimburse the federal government's investment. "

However, some Republicans were skeptical about whether the legislature actually receive important information at the hearing today before the Democratic-controlled committee.

"There is no vote by the committee to move forward, a quote or hold this hearing," said House Republican leader Lawrence Cafero of Norwalk. "I hope that this does not turn not equivalent to the law of Geraldo Rivera discovery of the Al Capone vault - that we have this great things to do and we find that there is nothing. "

- The hearing to be held today at 1 pm in Room 2B Legislative Office Building in Hartford, will be broadcast live on CT-N.



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