AIG

[classicman]

FWIW - - -

(CBS/AP) New York state's attorney general joined the growing list of those angered by news of American International Group's bonuses, and wants to have details on his desk this afternoon about who is getting it rewarded.

Attorney General Andrew Cuomo says his office will investigate whether recipients of the payments were involved in the insurance giant's decline and whether the payments are fraudulent under state law.

In a letter to CEO Edward Liddy, Cuomo said he's been investigating AIG compensation arrangements since last fall and would issue subpoenas at 4 p.m. EST Monday if he didn't get the names of employees scheduled for bonuses plus information about their work and contracts.

"Covering up the details of these payments breeds further cynicism and distrust on our already shaken financial system," he wrote.

"Taxpayers of this country are now supporting AIG, and they deserve at the very least to know how their money is being spent. And we owe it to the taxpayers to take every possible action to stop unwarranted bonus payments to those who caused the AIG meltdown in the first place."

"Under these circumstances, it's hard to understand how derivative traders at AIG warranted any bonuses, much less $165 million in extra pay," the president said. "How do they justify this outrage to the taxpayers who are keeping the company afloat?"

The administration official said that the bonuses "long been known about inside and outside AIG. But we didn’t want to accept them."

Then why did it take til now for them to do something?

[TGRR]

Originally Posted by classicman

FWIW - - -




Then why did it take til now for them to do something?

Well, for one thing, taking on the banking system hammer and tongs ain't an easy proposition.

Not making excuses, so much as offering an explanation. I'd prefer more guts in our leadership, personally.

[sugarpop]

HOLY CRAP!

Rage at AIG Swells As Bonuses Go Out
A tidal wave of public outrage over bonus payments swamped American International Group yesterday. Hired guards stood watch outside the suburban Connecticut offices of AIG Financial Products, the division whose exotic derivatives brought the insurance giant to the brink of collapse last year. Inside, death threats and angry letters flooded e-mail inboxes. Irate callers lit up the phone lines. Senior managers submitted their resignations. Some employees didn't show up at all... http://www.washingtonpost.com/wp-dyn...031602961.html



It really does seem like these people are completely clueless, otherwise they would have been willing to waive their bonuses, like so many other people are being forced to do all around the country, even though they also had contracts. If this isn't brought under control, violence might break out, and that really would be a shame.

This is only the beginning of $400 million going to that department. AIG also has $600 million more in retention awards going out to about 4,700 people throughout its global insurance units. I expect some of those death threats/threats of violence may happen if something isn't done about this.


In addition, the bonuses are retention awards, but many of the people receiving them no longer work there. 11 people who don't work there received more than $1 million each.... According to the attorney general's office, the top individual bonus was more than $6.4 million, and the top seven received more than $4 million each...
http://www.usatoday.com/money/indust...g_N.htm?csp=34

[TGRR]

Originally Posted by sugarpop

It really does seem like these people are completely clueless, otherwise they would have been willing to waive their bonuses, like so many other people are being forced to do all around the country, even though they also had contracts. If this isn't brought under control, violence might break out, and that really would be a shame.

It'd break my heart.