Cuomo Subpoenas AIG Over Bonus Payments
Submitted by Michael Nystrom on Mon, 03/16/2009 - 16:34
in
SAN FRANCISCO (MarketWatch) -- New York Attorney General Andrew Cuomo has subpoenaed American International Group to get information about $165 million in bonuses the insurer is paying. Cuomo said in an interview with CNBC that his office wants to understand why AIG felt compelled to pay the bonuses to employees of its derivatives unit, the main source of the insurer's troubles. Cuomo wants to see the contracts and is demanding a list of the bonus recipients. He noted that if the government hadn't saved AIG, the bonus contracts would have been void. Contracts can also be re-negotiated, he added.
Ah, the perils of government intervention in the marketplace.
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The Problem
The problem with this is once again misdirected aggression, fueled by washington, at AIG. Let me see if I get this:
AIG gets bailed out with tremendous amounts of money, basically on the honor system, that they will correct their inefficiencies.
AIG then enters or already has entered into personal contracts with employees for compensation for labor.
Now that AIG is attempting to uphold those legal, private contracts, the government is now outraged? And they are ready to impose a tax just for AIG employees (Sen. Dodd) in order to recoup the money?
How much more aggregious is it that our government is more than happy to interfere and even nullify private, legal contracts on a whim? The aggression should be always aimed at our government for handing over tax payers money in the first place. AIG was already a disaster, most likely created because of the moral hazard introduced by our government and the Fed. Should we expect them to be any more efficient with our money now? Propping up failing institutions has never worked and this is painfully obvious in AIG's situation, but we should be outraged at the fact that our government has the audacity to believe that we are so stupid as to just play along and direct our anger at AIG and forget that they are the ones handing out our money like it's nobody's business.
Exactly!
The fascist bailout didn't overrule private contracts so we need more fascism to correct that. Private contracts?!? Haha, nothing to be bound by - we've got a special tax for that.
I am wondering:
Who is it that handles the retirement funds for all of these politicians?
Who is it that makes sure that they get to collect their wealth for the rest of their lives even if they only serve one term?
Could it be AIG? I had ins. through them and there was a fire. I fought with them for four years and if it wasn't for the state ins. administration, they would never had paid me. They all need to be strung up and left as examples to the rest.
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I love my country
I am appalled by my government
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I love my country
I am appalled by my government
Cuomo should issue a
Cuomo should issue a subpoena to Greenspan, Bernanke, Gheitner or Paulson.
http://www.meetup.com/RP2012GrandJunctionCO
Below is a list of the top
Below is a list of the top six recipients of CDS payouts from AIG since the bailout.
* $13 billion to Goldman Sachs
* $12 billion to Soc Gen
* $12 billion to Deutsche Bank
* $9 billion to Barclays
* $7 billion to Merrill Lynch
* $5 billion to Bank of America
These firms engaged AIG voluntarily and were responsible for evaluating the risk of an AIG bankruptcy. Well, it turns out they evaluated correctly. Instead of having to recognize these losses, the insurance policies ultimately paid off, thanks to the U.S. taxpayers. In fact, the bailout shifted virtually all of the risk to U.S. taxpayers. The firms listed above were not required to share in any of the losses.
Hank Paulson orchestrated the AIG bailout just a week after he could find no legal authority to bail-out Lehman. The problem is that the name on the top of that list is his former firm.
When I hear the word "derivative," I immediately think of ....
big, black, hole. Now we have not only "national" big black holes, but also "foreign" big, black holes. The bottom line is that Paulson bailed out AIG so that they could indirectly bailout Goldman-Sachs. He also purposefully let Lehman Brothers go bankrupt without a bailout. He wanted to reduce the competition for this former company. This guy along his the others should be arrested immediately.
Who cares about $165 Million in bonuses?
I'd like someone to talk about the $15 Billion+ of bailout money...American Taxpayer Money... that went to AIG's foreign bank trading partners...
Let's see if Obama gets pissed about that!
**“The man who does not read good books has no advantage over the man who cannot read them.” ~ Mark Twain **
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about time
as Ralph Nader says "Jailtime Not Bailtime"
peace patriots*)
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