In a report last week, the General Accounting Office advised Treasury to withhold $30 billion from American International Group until the company agrees to renegotiate contracts with employees and final counterparties.
The report was just one more component of a multipronged federal probe into AIG contracts, including a call to action by U.S. banking officials from a key congressman related to derivative contracts and an initiative by the Department of Justice which seeks to recover bonus payments to employees.
The government secured a 79.9 percent interest in AIG in September of last year when it began extending billions in loans and credit to keep the firm afloat.
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