Crook Alert!! AIG Paying $165 Million Bonuses and $52 Billion to Counterparties with Taxpayers' Money
3-24-09 Another View of AIG Fiasco--Resignation Letter from Jake Desantis, AIG VP
- Resignation Letter from AIG VP Jake Desantis
Mr. Desantis resigned from AIG and will donate his the after-tax proceeds of his retention payment to charity. He is bitter toward CEO Edward Liddy for his failure to defend the recipients of the contractually provided retention payments of bonuses.
Obama: Apply the Heimlich Maneuver to AIG Execs
How to Stop AIG Bonuses
- Bill Black, Tom Ferguson, Rob Johnson, Walker Todd: How to Stop AIG\'s Bonuses
How to Stop AIG's Bonuses - The Huffington Post
Grassley to AIG Execs: Resign or Commit Suicide!
- Grassley to AIG Execs - Resign Or Commit Suicide - NYTimes.com
NEW YORK (Reuters) - A prominent U.S. senator gibed that executives of the troubled insurer American International Group Inc might consider suicide, adopting what he called a Japanese approach to taking responsibility for their actions.
AIG Hogs Waiting for Taxpayer Corn
AIG To Pay $100 Million Bonuses for Reckless Greed!NYTimes 3-13-09
AIG Paying $100 Million Bonuses With Taxpayers' Money 3-13-09 Edmund L. Andrews and Peter Baker in the NY Times
The NY Times reported today that American International Group (AIG) announced that it is paying $100 million in executive bonuses in part to the executives in the firm's London office who were responsible for creating the toxic, credit default swaps that brought about the collapse of the AIG house of cards. AIG's CEO declined a request from Secretary of the Treasury Geithner to reconsider, saying
“On the one hand, all of us at A.I.G. recognize the environment in which we operate and the remonstrations of our President for a more restrained system of compensation for executives. On the other hand, we cannot attract and retain the best and brightest talent to lead and staff the AIG businesses — which are now being operated principally on behalf of the American taxpayers — if employees believe that their compensation is subject to continued and arbitrary adjustment by the U.S. Treasury."
AIG CEO Liddy said he had been advised by lawyers that the company was legally required to pay the bonuses because they had been agreed to before the government bailout occurred.
Comment: I wonder why contracts with AIG executives are binding because they were negotiated months before the bailout while auto workers are expected to rescind health care insurance and pension contracts negotiated years ago, as the price of government support to avoid bankruptcy??? Something is rotten in Denmark!
This action by AIG is sure to provoke a shit storm in Congress next week.
AIG "Counterparties" who got the taxpayers' money poured into AIG
$12.9B Goldman Sachs (2.5/5.6/4.8)
$12.0B Bank of America/Merrill Lynch (7.0/2.3/7.6)
$5.2B Bank of America (0.2/0.5/4.5)
$6.8B Merrill Lynch (6.8/1.8/3.1)
$11.9B Societe Generale (4.1/6.9/0.9)
$11.8B Deutsche Bank (2.6/2.8/6.4)
$8.5B Barclays (0.9/0.6/7.0)
$5.0B UBS (0.8/2.5/1.7)
$4.9B BNP Paribas (0.0/0.0/4.9)
$3.5B HSBC Bank (0.2/0.0/3.3)
$3.3B Calyon (1.1/1.2/0.0)
$2.3B Citigroup (0.0/0.0/2.3)
$2.2B Dresdner Kleinwort (0.0/0.0/2.2)
$1.6B JPMorgan/Morgman Stanley (0.6/0.0/1.0)
$0.4B JPMorgan (0.4/0.0/0.0)
$1.2B Morgan Stanley (0.2/0.0/1.0)
$1.5B Wachovia (0.7/0.8/0.0)
$1.5B ING (0.0/0.0/1.5)
$1.1B Bank of Montreal (0.2/0.9/0.0)
$1.0B Deutsche Zentral-Genossenschaftsbank (0.0/1.0/0.0)
$0.8B Rabobank (0.5/0.3/0.0)
$0.7B Royal Bank of Scotland (0.2/0.5/0.0)
$0.7B DZ Bank (0.7/0.0/0.0)
$0.5B KFW (0.5/0.0/0.)
$0.3B Banco Santander
$0.4B Dresdner Bank AG (0.0/0.4/0.0)
$0.4B Credit Suisse (0.0/0.0/0.4)
$0.2B Citidel (0.0/0.0/0.2)
$50.2B Foreign Banks
$12.0B Municipal Bonds
$84.0B Unaccounted for
AIG Lists Counterparties Paid with Bailout Money
AIG to Pay Out $165 Million in Bonuses
- AIG pays out $165m in bonuses - Telegraph
AIG, the American insurance giant propped up by more than $170bn (£121bn) of US taxpayers' money, plans to pay $165m in bonuses to staff in the division which almost brought down the company.
Propping Up AIG's House of Cards by Joe Nocera in the NYTimes
- Propping Up the AIG House of Cards by Joe Nocera
So far the government has thrown $150 billion at the company, in loans, investments and equity injections, to keep it afloat. Donn Vickrey, who runs Gradient Analytics, predicts that A.I.G. is going to cost taxpayers at least $100 billion more.
AIG Lists the Banks It Paid With Taxpayers' Rescue Funds NYT 3-16-09
Payments to Counterparties is the Real Problem by Eliot Spitzer
- The real scandal at AIG is the not the bonuses. It\'s the payments to counterparties. - By Eliot Spi
Everybody is rushing to condemn AIG's bonuses, but this simple scandal is obscuring the real disgrace at the insurance giant: Why are AIG's counterparties getting paid back in full, to the tune of tens of billions of taxpayer dollars?
Slate on AIG 1-2-3
- Bonuses at AIG As Easy As 1, 2, 3 | The Big Money
Today's Business Press It may only be a small share of the $170 billion in total government assistance to the company, but the latest move by AIG to honor commitments to 400 employees with $165 million in bonuses has Treasury fuming.
Gordon Gekko "Greed is good!
Creditors May Be Able to Go After bonuses
- Creditors Could Go After Lehman Bonuses - CFO.com
Whether employees get to keep their generous $5.7 billion in 2007 bonuses may depend on whether the bank is found to have been solvent at the time they were made.
AIG Bailout Math
AIG Pig Waiting To Be Fed by U.S. Taxpayers
Pelosi: One Way or Another, AIG's Bonuses Are Coming Back
By Elana Schor - March 16, 2009, 6:12PM
House Speaker Nancy Pelosi (D-CA), after issuing a statement on Sunday vowing that Congress would examine ways to claw back AIG's $450 million-plus in questionable bonus payments, isn't letting go of the issue.
In a second statement released this afternoon, Pelosi urged the Treasury Department to do "use whatever tools at its disposal" -- legal or otherwise -- to reclaim the bonuses. And she reminded the rest of official Washington that Congress is already on the case.
The American people do not want their tax dollars spent on bonuses for AIG executives who have mismanaged their company into near bankruptcy. AIG executives should voluntarily forgo their excessive retention payments, but if they refuse, the U.S. Treasury should use whatever tools at its disposal to make AIG repay taxpayers.
AIG has turned on its head the basic principle that bonuses and retention payments are rewards for outstanding performance. No taxpayer funds should be used to pay bonuses or other unjustified compensation to AIG executives whose irresponsible risk-taking brought our financial system to the brink of collapse.
This week, Congress will demand further answers from AIG on the steps the government-controlled company will take to repay taxpayers. Congress and the Obama Administration are working to protect taxpayers from such irresponsible misuse of taxpayer funds.
We, U.S. taxpayers, should hold individuals accountable, even if AIG
and the U.S. government will not. Here's a place to start: the AIG
Board of Directors' Compensation and Management Resources Committee:
James F. Orr III, Chairman, Chairman of the Board of Trustees, The Rockefeller Foundation
Stephen F. Bollenbach, Former Co-Chairman and Chief Executive Officer, Hilton Hotels Corporation
Dennis D. Dammerman, Former Vice Chairman of the Board, General Electric Company; Former Chairman, GE Capital Services
Suzanne Nora Johnson, Senior Director, Former Vice Chairman, The Goldman Sachs Group, Inc.
Virginia M. Rometty, Senior Vice President, Global Sales and Distribution, IBM Corporation
— U.S. Taxpayer, Washington, D.C.
Wife of AIG Executive
A.I.G. Sues Government for Tax Refund!
A.I.G. Sues U.S. for Return of $306 Million in Tax Payments
While the American International Group comes under fire from Congress over executive bonuses, it is quietly fighting the federal government for the return of $306 million in tax payments, some related to deals that were conducted through offshore tax havens.
A.I.G. sued the government last month in a bid to force it to return the payments, which stemmed in large part from its use of aggressive tax deals, some involving entities controlled by the company’s financial products unit in the Cayman Islands, Ireland, the Dutch Antilles and other offshore havens.
A.I.G. is effectively suing its majority owner, the government, which has an 80 percent stake and has poured nearly $200 billion into the insurer in a bid to avert its collapse and avoid troubling the global financial markets. The company is in effect asking for even more money, in the form of tax refunds. The suit also suggests that A.I.G. is spending taxpayer money to pursue its case, something it is legally entitled to do. Its initial claim was denied by the Internal Revenue Service last year.
Daily Kos 3-21-o9
The Big Takeover--Mat Taibbi in Rolling Stone
- The Big Takeover : Rolling Stone
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Reasonable Limits on Executive Compensation or "Witch-huntery" Debating the "Sherminator"
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