State Probes To Continue Despite AIG Bonus Return

Law360, New York (March 24, 2009, 12:00 AM EDT) -- Several states will continue investigating potential securities violations resulting from the $165 million in bonuses awarded to American International Group Inc. employees, despite an announcement from the New York attorney general that at least $50 million of the controversial retention payments had been returned.

In a letter sent to AIG general counsel on Tuesday, Connecticut Attorney General Richard Blumenthal said his office would continue its investigation into AIG's activity in the credit derivatives market, as well as its bonus and compensation policies, and demanded that AIG...
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