AIG executives in London 'hold out in bonus assault'

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http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article5971017.ece

Senior London-based executives at American International Group (AIG) are among those understood to be holding out against returning their bonuses.

Andrew Cuomo, the New York attorney-general, is investigating whether AIG bonuses were paid fraudulently under New York law. His aides have confirmed to The Times that many, if not all, of those who have held on to their bonuses are based in London, where AIG’s financial products division has been held responsible for a large portion of the insurer’s spectacular losses.

AIG was under fresh pressure yesterday to reveal the names of the individuals who have not returned their bonuses after Richard Blumenthal, the Connecticut attorney-general, subpoenaed 14 present and former executives. Mr Blumenthal expressed “deep concern and frustration” over AIG’s “lack of cooperation” in his investigation into its compensation and bonus practices in a letter sent to the insurer’s lawyers.

His office did not name those executives being subpoenaed, but said that they would be required to testify at a hearing in Hartford, Connecticut, tomorrow.