Article: AIG bows to pressure, pulls lobbying efforts; Insurer's expenses placed under microscope.(News)(American International Group Inc.)

Byline: MARK A. HOFMANN

WASHINGTON-American International Group Inc.'s agreement to halt federal lobbying activities could have unintended consequences, according to lobbyists both inside and outside the insurance industry.

The move could cut off a source of information for Capitol Hill as lawmakers wrestle with the economic crisis, lobbyists said. But a consumer advocate said the move is more than justified.

AIG's decision came after Sens. Dianne Feinstein, D-Calif., and Mel Martinez, R-Fla., sent a letter to AIG Chairman and Chief Executive Office Edward Liddy. The letter asked him to end lobbying activities by AIG, which has received federal ...

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