AIG CONFIRMS RESIGNATION OF KELLY

US insurer AIG has confirmed that general counsel Anastasia Kelly has resigned from the company. Ms Kelly cited "good reason" under the terms of her contract and the compulsory reduction in her salary, which had been enforced because AIG had received TARP funds. Suzanne Folsom, deputy general counsel and chief compliance & regulatory officer, also resigned. CEO Robert Benmosche said that AIG was "exceedingly grateful" for the work done by Ms Kelly, "often during very difficult times". Bloomberg, citing unnamed people familiar with the matter, said that Ms Kelly would collect about $3.8m in severance pay, while Ms Folsom would be entitled to more than $1m. AIG's spokeswoman Christina Pretto declined to comment on the matter. If Ms Kelly is obtaining the maximum of two years' severance pay because of her "good reason" termination, then the salary cap of $500,000 would have cut her pay by nearly 75% She joined AIG in 2006 to help the company already in the middle of a regulatory crisis that had led to the ousting of Maurice "Hank" Greenberg after an investigation by then New York Attorney-General Eliot Spitzer.