Oct. 17 (Bloomberg) -- Congress is demanding American International Group Inc. turn over documents related to Joseph Cassano, who ran the unit responsible for more than $25 billion in writedowns before AIG was taken over by the government.

Congressman Henry Waxman, the chairman of the Committee on Oversight and Government Reform, asked New York-based AIG in a letter today for documents and e-mails reviewed by four employees including Cassano and for records on his compensation.

Lawmakers are investigating how AIG, once the world's largest insurer, nearly became bankrupt because of bad bets on the U.S. housing market by Cassano's unit. Legislators lambasted AIG at an Oct. 7 hearing over executive pay and money spent by the firm to send salespeople to resorts.

AIG received Waxman's letter and will respond to the committee, said Nicholas Ashooh, a spokesman for the insurer. ``In the meantime, we're working closely with the New York attorney general, the New York Department of Insurance and the Federal Reserve on reviewing all expenses and activities.''

To contact the reporters on this story: Hugh Son in New York at hson1@bloomberg.net; Erik Holm in New York at eholm2@bloomberg.net.

Last Updated: October 17, 2008 15:07 EDT