Cuomo Exhorts AIG To Take Action On Exec Bonuses

Law360, New York (October 15, 2008, 12:00 AM EDT) -- Humbled insurance giant American International Group Inc. is facing a probe by New York State Attorney General Andrew Cuomo over “unwarranted and outrageous expenditures” paid to current and former executives even as the company slid into insolvency and procured an $85 billion loan from the federal government.

In a letter dated Wednesday, Cuomo warned AIG that he would take action against the insurance provider on fraudulent conveyance grounds if its board of directors does not stop, review, rescind and then recover massive bonus payments to current...
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