The lawmakers said testimony from employees of AIG's Wilton-based Financial Products unit would help them craft legislation pertaining to regulation of the securities industry, hedge funds and the mortgage industry, according to a statement from state Sen. Bob Duff, D-Norwalk, and Rep. Ryan Barry, D-Manchester, co-chairmen of the General Assembly's banks committee.
The names of people subpoenaed were available to state officials based on public records and press accounts, although state officials did not say which records they searched. Several of those included in the subpoena had been political contributors to Sen. Christopher Dodd.
Dodd has said he would return all campaign contributions from AIG and its employees.
Also Friday, AIG released information to Connecticut officials detailing contracts and other aspects of more than 400 bonuses it paid this month to employees in its Financial Products subsidiary.
Consumer Protection Commissioner Jerry Farrell Jr. and Blumenthal separately received the information, including the amounts of the $165 million in bonuses paid to employees and the agreements under which employees received them. The information does not include names of people who received bonuses.
The largest bonus was $6.4 million, reportedly paid to Poling, who has said he would give it back, under a request from AIG. Six employees got bonuses of more than $4 million, Gov. M. Jodi Rell said in a prepared statement; 66 got bonuses of more than $1 million each.
Farrell, who subpoenaed the information, is investigating whether the company violated any provisions of the Connecticut Unfair Trade Practices Act, which addresses actions that may be deemed "against public policy."
"The legal argument that's being advanced is that, in providing the [Troubled Asset Relief Program] funds, Congress did not intend on paying the bonuses to these AIG executives," Farrell said, but he added that his inquiry would have to determine whether the payouts violated public policy.
AIG has cited a section of Connecticut labor law as requiring the company to pay the bonuses or face possible penalties of double those amounts in a civil lawsuit. Blumenthal, in a statement, said, "These contracts rip the rug from under AIG's excuses — revealing no basis under Connecticut law for these mega taxpayer-funded bonuses."
The bonus payments have fallen under intense scrutiny because the insurance giant has received more than $170 billion in government bailout money.
Blumenthal said Friday that AIG is withholding the names of the bonus recipients from Connecticut officials because the state's Freedom of Information Act is "too broad."
AIG has already given the names and other information to New York Attorney General Andrew Cuomo, according to a statement from Cuomo's office. But Blumenthal said AIG told him Connecticut's FOI laws — unlike New York's and unlike the rules that apply to Congress — would require public release of the records.