More bonuses for AIG employees

Hartford (WTNH) - The outrage over bonuses given to AIG executives may be just beginning. Following a hearing at the state Capitol yesterday over the $165 million that's already been dished out, there is word tonight that even more money could be on its way.

Now that that the dust has settled from yesterday's hearing, the Chair of the Banks Committee is pointing to confidential documents given them by AIG that show the bonuses to the Wilton-based Financial Products division are far from over.

The AIG executive, Stephen Blake, who spoke yesterday did say another round of bonuses is coming, but he did not indicate how large. The documents show that "further payments totaling approximately $230 million are due to 407 participants in March of 2010."

"What AIG has not produced before is that total bonuses between 2008 and 2009 are going to probably be in excess of $400 million," said Sen. Bob Duff (D-Banks Committee).

Blake said repeatedly yesterday that the retention bonuses were needed to keep employees working at the Wilton division to clean up the mess while winding down the business.

These bonuses are rising. So as they seem to be winding down the unit and their investments, they're winding up the bonuses another $230 million next March," said Attorney General Richard Blumenthal.

Blumenthal also says AIG attorney Patrick Shea did not cite all case law in his opinion on the Connecticut Wage Act as justification for paying the bonuses, so he is telling the Fed in a letter why it's wrong.

"We're asking the Fed to step aggressively and vigorously to block these bonuses because clearly they have the power to do so," Blumenthal said.

Duff says they have a lot more AIG documents to go through and expect to call or interview privately more witnesses. And because his committee is working on issues of securities and unsecured lending and hedge funds, they definitely have jurisdiction over this Connecticut-based business.