Montana State Auditor’s Office Submits Demand Letter to AIG

March 20, 2009

Montana State Auditor and Commissioner of Securities Monica Lindeen have sent a demand letter to AIG requesting information about the company’s finances and bonuses. Lindeen is asking her Securities Division to look into potential violations of Montana law, which specifically prohibits omission or misrepresentation in connection with the offer and sale of securities.

The letter asks that AIG provide information relating to the compensation recently paid to members of AIG’s Financial Products (AIGFP) subsidiary in light of AIG’s receipt of billions of dollars of taxpayers’ funds.

“As was promised, we want to ensure the investing public that money received by the company is being used to improve the financial welfare of the company,” said Lindeen. “Not to line the pockets of the same individuals who may have helped cause the financial crisis in the first place.”

According to the letter sent by the State Auditor’s Office to AIG, the information is necessary to determine what representations were made to Montana investors last fall as to the financial condition of the company and the use of Troubled Asset Relief Program (TARP) funds.

A copy of the demand letter is pasted below and available online at http://www.sao.mt.gov/Lindeen%20Letter%20to%20AIG%203%2019%2009.pdf.

Source: Montana State Auditor

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