Author Topic: NINETEEN US STATES GO AFTER AIG  (Read 629 times)

Offline Prince

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NINETEEN US STATES GO AFTER AIG
« on: March 21, 2009, 06:58:59 AM »

New Jersey Attorney General Anne Milgram wants AIG bonuses paid back

Nineteen US states are demanding that insurance giant AIG reveal details of bonuses paid to executives, so they can take steps to recover the funds.

This comes after New York Attorney General Andrew Cuomo said AIG had given him such a list on Thursday.

The US House of Representatives has passed a bill to levy a tax of 90% on the big bonuses paid to people working at firms that have received state aid.

The $165m (?114m) of bonuses have caused outrage across the US.

US President Barack Obama has denounced such bonuses, while even AIG boss Edward Liddy has described them as "distasteful".

AIG has taken $170bn in aid from the US government.

'Padding' pockets

New Jersey Attorney General Anne Milgram said she had sent a letter to AIG boss Edward Liddy demanding a list of employees who received payments.

"We want to ensure the investing public that money received by the company is being utilised to improve the financial welfare of the company, not pad the pockets of the same individuals who led to the financial crisis in the first place," said Ms Milgram.

Connecticut has also subpoenaed AIG for the details. Governor Jodi Rell said the state would pursue "all legal means available to void the bonuses and recapture the taxpayer dollars."

The coalition of states is made up of Arizona, Delaware, Illinois, Kentucky, Louisiana, Maine, Michigan, Mississippi, Montana, Nebraska, New Mexico, Ohio, Oklahoma, Oregon, Pennsylvania, Texas, Washington and West Virginia.

Unimagined mistakes

On Thursday, US lawmakers in the House of Representatives voted 328-93 in favour of legislation to levy a 90% tax on large bonuses from firms bailed out by taxpayers.

On Wednesday, Mr Liddy said that "mistakes were made at AIG on a scale that few could have imagined possible."

AIG was saved from bankruptcy when it was granted an $85bn lifeline last September.

The government has since pumped billions more into the troubled insurer, which reported a loss of $61.7bn for the last three months of 2008, the biggest quarterly loss in corporate history.

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NINETEEN US STATES GO AFTER AIG
« on: March 21, 2009, 06:58:59 AM »

Offline d muguwokeup

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Re: NINETEEN US STATES GO AFTER AIG
« Reply #1 on: March 21, 2009, 05:38:23 PM »
It appears that the AIG figure was at least 30% incorrect.

The BBC report that follows sheds more light:
------------------------------------
"AIG bonuses 'higher than thought'

US insurance giant AIG paid out a total of $218m (?150m) in bonuses after accepting bail-out cash, according to a senior US official.

Documents obtained by Connecticut's attorney general showed AIG's payout was $53m, or 32%, more than thought, the Associated Press reported.

Papers obtained by subpoena showed 73 people got more than $1m each while five received more than $4m, AP said.

The US has rescued AIG with a $170bn bail-out package since September 2008.

But revelations about the size of bonus payments made by the organisation since the bail-out was agreed have sparked a furious reaction among US lawmakers and the general public.

'Distasteful'

For much of the week the total amount AIG paid out in bonuses was reported at $165m.

But documents obtained by Richard Blumenthal, Attorney General of Connecticut, now appear to raise that figure by some 32%.
   
Connecticut was among 19 states demanding that AIG reveal details of bonuses paid to executives, in an effort to begin recovering the funds.

AIG has made no comment on Mr Blumenthal's findings.

But Mr Blumenthal said the newly-revealed number would "further fuel the justified anger and revulsion that people feel", AP reported.

Earlier this week US President Barack Obama described the bonus payments as an "outrage", before state legal figures and congressmen also weighed in.

Even AIG boss Edward Liddy - who underwent questioning by a congressional committee on the issue - has described them as "distasteful".

Reports from the US say that AIG executives are now living in fear of a violent public backlash.

Many are reported to have received death threats and have been advised to take extra security precautions even in areas around their homes.

Protesters are expected to drive past executives' homes on Saturday in an attempt to deliver letters highlighting the plight of ordinary families during the current recession".

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Re: NINETEEN US STATES GO AFTER AIG
« Reply #1 on: March 21, 2009, 05:38:23 PM »

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Offline Prince

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Re: NINETEEN US STATES GO AFTER AIG
« Reply #2 on: March 22, 2009, 07:52:32 AM »
The global crisis is now exposing all of them.

Offline d muguwokeup

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Re: NINETEEN US STATES GO AFTER AIG
« Reply #3 on: March 23, 2009, 12:14:28 PM »
Global crisis ke!

So far, dis ting called 'global crisis' has helped clarify issues.

In fact, if you ask me, 'global crisis' is the technical name for when the the rest of the world picks up the tab (under must) for the financial excesses/recklessness/thieiving ways of a select few.

« Last Edit: March 23, 2009, 12:15:57 PM by d muguwokeup »

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Re: NINETEEN US STATES GO AFTER AIG
« Reply #3 on: March 23, 2009, 12:14:28 PM »


 

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