At least 18 other states have joined New York in an attempt to recoup money the failed insurance giant received or void the bonuses altogether. The most notable include New Jersey and Connecticut.
In an effort to see if AIG's retention bonuses violate state law, Anne Milgram, New Jersey's attorney general, sent a letter to AIG Chairman Edward Liddy asking for a list of employees who belonged to the company's infamous Financial Products division, The Associated Press reported.
Milgram's counterpart in Connecticut, Richard Blumenthal has taken similar action. Additionally, the state's consumer protection division has been charged by Gov. Jodi Rell to see if the bonuses violated its Unfair Trade Practices Act which prohibits "unfair methods of competition and unfair or deceptive acts or practices of any trade or commerce."
Friday on the The Early Show, former AIG CEO Maurice "Hank" Greenberg, who created the Financial Products division, denied any involvement in the current bonus controversy.