Hartford – State Senator Bob Duff (D-Norwalk) and Representative Ryan Barry (D-Manchester), co-chairs of the General Assembly’s Banks Committee, with Attorney General Richard Blumenthal today issued subpoenas commanding several A.I.G. employees, including CEO Edward M. Liddy, to appear at a legislative hearing on Thursday, March 26.

The committee is commanding testimony as well as original or copies of documents regarding the AIG Financial Products Corporation retention bonus plan and any related contracts or agreements.

According to the lawmakers, the activities of the Financial Products Corporation are of interest to the committee and their deliberations on legislation pertaining to regulation of the securities industry, hedge funds and the mortgage industry. The division’s actions have destabilized the mortgage and lending markets in Connecticut, the lawmakers said, and excessive compensation could have led to employees taking risky measures that caused further destabilization.

“Our intention is to get to the bottom of this story and to ask the very direct questions about why these bonuses were given, when they were ordered and why they are using a vague Connecticut law to justify their actions,” said Senator Duff. “The people of our state and our nation are completely within their right to be upset, angry and outraged by these bonuses. They expect lawmakers at all levels of government to ask tough questions, demand straight answers and find solutions.”

“These are people we are at the highest level of the financial services food chain,” Representative Barry said. “They put their stamp of approval on bad securities products and sold them like they were gold. We want to examine the pay structure and fee incentives that led to this quick-sale, high-risk culture and see what regulatory gaps exist that can be tightened.”

“These A.I.G. employees have critical information about the cause of corporate collapse at A.I.G. necessary to a valid investigation and legislative reform,” said Attorney General Blumenthal. “Now living off supersized taxpayer-paid bonuses, these A.I.G. employees have a moral and legal obligation to appear at this legislative hearing and disclose details about corporate compensation to employees as well as investment decisions by A.I.G. Financial Products Corporation involving credit derivatives and dealings that have led to market destruction.”

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Continued Attorney General Blumenthal, “I will enforce these subpoenas if necessary through prompt and aggressive court action. We are preparing to do so.”

• James Haas, Fairfield
• Jonathan Liebergall, New Canaan
• Douglas Polling, Fairfield
• Christopher Phole, New Canaan
• Steven Pike, Stamford
• Robert Powell, Westport
• Joseph Rooney, Fairfield
• Gregory Ruffa, Darien
• Leonid Shekhtnam, Redding
• Christian Toft, Weston
• Steven Wagar, Norwalk

Under section 2-46 of the Connecticut General Statutes, legislative committee chairmen are authorized to compel the attendance and testimony of witnesses by subpoena and capias issued by them; to require the production of any necessary books, papers or other documents; and to administer oaths to witnesses in any case under their examination.

The General Assembly’s Banks Committee has cognizance over matters relating to the Department of Banking, banks, savings banks, bank and trust companies, savings and loan associations, credit unions, the supervision of the sale of securities, fraternal benefit societies and all legislation dealing with secured and unsecured lending, pursuant to the section 3(b)(10) of the Joint Rules.

The March 26 hearing will begin at 1:00 p.m. in Room 2B of the Legislative Office Building in Hartford.