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Connecticut seeks to void AIG bonuses

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Added by apesphere on 19 Mar 2009
From: www.courant.com

Image courtesy NationalGovernorsAssociation via Flickr

Connecticut state Governor M. Jodi Rell has asked the consumer protection agency to see if the AIG bonuses could be held void under consumer law.

 

The agency was instructed to subpoena documents relating to the bonus payments in order to see if a case could be made under the Unfair Trade Practices Act that the payments were against public policy. The payments have sparked anger because they were made by  Connecticut-based AIG Financial Products despite receipt of taxpayer bailout funds.

 

The Hartford Courant reports that the Governor:

"noted that AIG has cited a state law in justifying the use of federal bailout funds to pay the bonuses. "Since the company cited Connecticut law, they will have to live by Connecticut law," Rell said."

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