It is important, the congressman said, that people have confidence in what is being done with taxpayers' funds and investors need confidence in the markets, and because the company has received as much aid as it has, Congress and the American people need confidence in AIG management.

However, he said, Mr. Liddy's failure to reveal his financial interests is undermining that confidence.

The lawmaker said he was renewing his previous call for Mr. Liddy's resignation.

Congressman Alan Grayson, D-Fla., who is a member of the House Financial Services Committee, in an interview with National Underwriter said at the very least Mr. Liddy should recuse himself from any decision regarding Goldman Sachs, but came up just short of calling for his resignation.

"Given the fact that his $1 a year compensation was disingenuous, I would not be sorry to see him go," said Mr. Grayson.

Mr. Grayson was also critical of Mr. Liddy's failure to name the people responsible for AIG's dilemma in the financial products division during his testimony before the committee.

"He refused to tell me the names of the people responsible for this $100 billion-plus payout by the taxpayers, and I find that unwillingness to answer a simple question to raise even deeper questions about whether he is the right person for that job," said Mr. Grayson.

In an April 6 filing with the SEC, Goldman Sachs revealed that as a previous director at Goldman Sachs Mr. Liddy received 18,244 shares of restricted stock offerings worth more than $2.2 million for compensation for his service. He resigned the position in September of last year after agreeing to take over as CEO of AIG at the behest of then Treasury Secretary Henry Paulson.

The General Accounting Office has told Treasury that it should hold payment of $30 million to AIG until the company renegotiates contracts with employees and counterparties.

In testimony before the Senate Finance Committee, Neil Barofsky, Special Inspector General of the Troubled Asset Relief Program, has disclosed that there are ongoing probes into bonus payments made by AIG.

He said his office is coordinating with the DOJ on the options available to recover bonuses paid to AIG executives involved with the financial products unit that caused the firm's financial distress.

He also said his agency has an audit underway that seeks to determine the federal monitoring and enforcement of executive compensation restrictions imposed as a condition of federal financial assistance to organizations such as AIG.

The federal government owns 79.9 percent of AIG in exchange for billions of dollars in loans the company accepted in order to keep afloat as a result of its losses.