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Peter thank you Peter -- AIG officials at this week that.
They actually were obligated to -- about the millions in bonuses in order to -- here to a Connecticut state law.
Connecticut officials say that's up Lindsay argument.
Joining us now for an exclusive interview on Fox Business Richard Blumenthal his attorney general.
For the state of Connecticut was part of a coalition of nineteen state attorney -- attorneys general.
Launching an investigation into the bonuses paid AIG -- good to see you sir thanks for coming in appreciate it.
Thank you now this whole issue courses is about as far as everybody's going like this blaming everybody else but in the state of Connecticut.
Last night I talked Larry to pharaoh the Republican.
Legislator who is actually working.
We -- you I believe in trying to come up with a solution to get rid of this Connecticut or amend the Connecticut state law.
That might allow these bonuses to -- -- doubt given out explain.
Well right now there may be some gray area but we think.
That this camouflaged.
Or really it's a joke of a justification that somehow that company was compelled by Connecticut law.
To make these payments simply will not.
Withstand scrutiny and the reason is quite simply the law protects wages it says that a company that fails the -- pay wages.
That it's contracted to do.
Can be subject to penalties now these bonuses.
Whatever you think of the merits and I think they're outrageous but.
Whatever you think of America are simply not wages and therefore they're not required by Connecticut law the reason that out wages.
Is that the company had huge latitude and discretion of -- and they were not linked to specific services -- tax sort efforts in fact.
We believe that the contracts will show that they would be paid regardless of whether these employees did anything.
In fact why would they need these employees when they were in effect disbanding.
The unit be financial product.
We are waiting to review the contract we're told that AIG will give them to us today if they're doing with.
New York and the congress.
Those documents and others including the names and addresses of these employees.
And by the way we are doing our investigation now in coordination with the legislative committee.
Fifteen the individuals we believe that these subpoenas will be issued today to individuals we're prepared to enforce the subpoenas.
So that we can hear from them.
About what they were supposed to do supposedly under these contracts.
Of the bonuses that sounds like you're following what AI attorney general Andrew Cuomo in the State of New York would like to do and that's get the names and and -- these people forward.
What now though if you had your druthers what would be the outcome here you just want the focus is not given out.
Not given out in the future second.
Retrieved or recovered.
Individuals who have already received them do you buy the argument you that that -- -- then you won't be able to retain the very people who know how to unwind these ultra complicated.
Derivatives that got the entire company -- a hot water in the first place.
I don't buy that argument for a New York minute if you look at excuse not committing -- New York.
They -- a Connecticut.
Hour or minute or second.
You know these people failed at what they were supposed to do they drove the company into.
Why rely on man to dig it out -- our restore the -- -- fact that.
This unit is going to be disbanded its being wound down many employees have left anyway the idea of retaining or recruiting.
What's been referred to as you know employees who were given an -- performance and great -- Really seems pretty bogus to me.
And so I think what's really needed is to clean house in that unit and have a whole bunch of new people who are not wedded.
To justify what they've done in the past.
Blumenthal blemish in the beginning there's a lot of finger pointing going on of course and -- it always happens but.
Isn't this the kind of thing that is inevitable when you put a 700 billion dollar program in the hands of basically Neal Cotts -- And forty people that are working -- there's always going to be.
-- doling out.
700 billion dollars.
Well forgive me for stating the obvious but this issue was not one that.
Was sort of under the radar it was a point of negotiation as you have just reported.
Minutes ago treasury officials identified it when AIG pushed back they yielding.
So I don't think it's one of those.
Details that somehow was lost.
In well it certainly was lauded him -- certainly was lost in the memory of Chris Dodd at the beginning of the week.
I think the entire congress voted on that bailout bill.
And this provision was in the bill and the point is now looking forward.
Let's recover the money let's prevent these bonuses from happening in the future let's come down hard on the oversight and scrutiny function.
Which has permitted.
Here's an even bigger issue in dollar terms money to go from AIG.
To -- -- bank Goldman.
All of the other recipients even before they suffered any loss is apparently and I think that's the next point.
Outrage and revulsion on the part of the American people what happened to the billions that went -- AIG.
When you see assert that for example what we filed for the Freedom of Information Act -- and that's why Fox Business is getting those emails that now indicate.
This was discussed for months ago on behalf of treasury and that even I think some of the emails were saying that Neal Cotts Carre.
Was about to cave -- -- you start to see the real inner workings of it and they they pretty here.
Does that sort of give you fuel for your fire going forward in this fight.
Very much so because.
It did documents that you have disclosed today plus others that we are reviewing now.
Give even stronger impetus -- amount to investigate.
Their reasons for these bonuses what can be done to recover them and how we should stop any such.
Outrageous payments in the future we need to stop rewarding.
And that people who drove AIG into financial Fiat going contributed.
The corporate collapse throughout the economy.
Should not be receiving.
These kinds bonuses we should move immediately to recover them either through a tax at the congress is discussing.
Or at the state level at Connecticut is considering or other measures in court.
And of course we only find out about these things through transparency we are working with TARP overseer Elizabeth Warren and try to get all these documents from the Fed.
And the Treasury Department I hope we can continue to work with your -- as well in trying to get these documents and share them with a public.
Absolutely and we'll let you know in fact will be announcing shortly be subpoenaed they'd be issued to.
AIG financial products.
The employees here in Connecticut.
And we're hoping that they'll come testify -- our legislative committee -- please let us know as soon as you do we'd love to share that with our viewers Richard Blumenthal thank you very much -- so much thank you.
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