Connecticut Governor aims to win back AIG bonus payments

NEW YORK (Reuters) - Connecticut will issue a subpoena to American International Group on Thursday for details about bonus payments to see if it can wrest them from the insurer because they violate state law, Governor Jodi Rell said in a statement.

The Republican, noting that AIG’s financial products arm makes its home in Wilton, Connecticut, explained the insurer has cited Connecticut law as requiring the bonus payments.

Vowing to hold AIG accountable under Connecticut law, Rell added: “The use of bailout funds -- which really means taxpayer money -- to pay employee bonuses was certainly not the ‘public policy’ Congress had in mind when it enacted the Troubled Asset Relief Program.” Rell added: “We will use all legal means available to void the bonuses and recapture taxpayer dollars.”

Reporting by Joan Gralla; Editing by Theodore d’Afflisio