Regulation/Legislation

A.I.G. said a number of its executives who work outside the United States for its troubled Financial Products unit have returned bonuses that have drawn criticism from U.S. and state officials.

Connecticut State Attorney General Richard Blumenthal yesterday announced that Federal Reserve Chairman Ben Bernanke was wrong when he said Connecticut law prevented him from attempting to recoup American International Group bonus monies.

Florida's government-dominated insurance system needs reform because its current system makes the state less safe and increases the log-term costs to taxpayers, a study by a free market think tank has concluded.

American International Group's plane leasing subsidiary, International Lease Finance Corporation, said its future existence could be in doubt if it is unable to secure funding from its troubled parent or a third-party lender.

The Obama administration's plans to seek legislation giving it the authority to take over a troubled non-bank financial services company like an insurer is a move to "usurp" the state regulatory and guaranty fund system, an industry lawyer said today.

Treasury Secretary Tim Geithner told a congressional committee today he will ask Congress Thursday to okay a federal receiver for "systemically important" nonbank financial firms like American International Group.