New York AG pressuring companies not to pay employees' attorneys fees
New York AG (now Governor-elect) Eliot Spitzer has been obtaining provisions in settlement agreements with financial institutions that have been targets of investigations by his office prohibiting the organizations from paying the attorneys fees of employees who face criminal charges. A September 26 post in this blog reported on the criticism by a US District Judge of a similar practice by the Justice Department in criminal proceedings against former partners and employees of KPMG. It will be interesting to see whether this practice spreads to finite reinsurance investigations.
