Cuomo Subpoenas AIG

[kpete]

Source: Daily Beast

.

Cuomo Subpoenas AIG

Watch out, AIG: Andrew Cuomo’s on your tail. The New York attorney general announced this afternoon the insurance giant hasn’t given him the information he sought about its $165 million in bonuses, and he’s issuing subpoenas for the data. Cuomo had set a 4 p.m. deadline for the information on payments to AIG’s money-hemorrhaging financial products unit, which were sent out Friday. “I believe in transparency and disclosure,” he said on a conference call. “We believe taxpayers have a right to know.” Bailout king AIG is doling out the bonuses over the objections of the Obama administration, claiming it is bound by contracts. But Cuomo says that because the company received federal bailout money, it must consider what’s best for taxpayers: “You could argue that if taxpayers hadn’t bailed out A.I.G., the contracts wouldn’t be worth the paper they were signed on,” he said.

Read more: http://www.thedailybeast.com/cheat-sheet/#cheatrow_3896

[skooooo]

1. thank you andrew cuomo

[jordi_fanclub]

2. Furious Cuomo Demands AIG Bonus (Details)

via Business Insider: http://www.businessinsider.com/henry-blodget-furious-cuomo-demands-aig-bonus-details-2009-3

Andrew Cuomo's mad as hell about those AIG bonuses, too. And unlike Ben Bernanke and Tim Geithner, he might actually do something about them.


Today's letter to AIG (see below):

We were disturbed to learn over the weekend of AIG's plans to pay millions of dollars to members of the Financial Products subsidiary through its Financial Products Retention Plan. Financial Products was, of course, the division of AIG that led to its meltdown and the huge infusion of taxpayer funds to save the firm. Previously, AIG had agreed at our request to make no payments out of its $600 million Financial Products deferred compensation pool.

We have requested the list of individuals who are to receive payments under this retention plan, as well as their positions at the firm, and it is surprising that you have yet to provide this information. Covering up the details of these payments breeds further cynicism and distrust in our already shaken financial system.

In addition, we also now request a description of each individual's job description and performance at AIG Financial Products. Please also provide whatever contracts you now claim obligate you to make these payments. Moreover, you should immediately provide us with a list of who negotiated these contracts and who developed this retention plan so we can begin to investigate the circumstances surrounding these questionable bonus arrangements. Finally, we demand an immediate status report as to whether the payments under the retention plan have been made.

We need this information immediately in order to investigate and determine: (l) whether
any of the individuals receiving such payments were involved in the conduct that led to AIG's
demise and subsequent bailout; (2) whether, as you claim, such individuals are truly required to unwind AIG Financial Product's positions; (3) whether such contracts may be unenforceable for fraud or other reasons; and (4) whether any of the retention payments may be considered fraudulent conveyances under New York law.

[jordi_fanclub]

3. Cuomo letter to AIG...

The original is here (pdf):
http://www.oag.state.ny.us/media_center/2009/mar/AIG%20Letter%203.16.09.pdf

[earcandle]

4. These companies are subjected to yearly audits. If not, why not?

And if their financial statements are misstated then the
Accounting Firm that conducted the audits can be sued by the
stockholders and even creditors if they go bankrupt.  

Stop being duped as if the government has to ask for these
things. They should already be available.  Any public company
or corporation can be raided by the IRS and FBI, or Sales Tax
Boards etc. 

Why are they trying to suggest that this is hard to do?  

Am I missing something?  
Any CPA firm belong to this group?
Got anything to say about these practices, rules, etc? 
The SEC should have the financials, and the government can
audit them to
see if the SEC were fraudulent as well, like they were in
Madoff's case. 

Grrrr....  

[mascarax]

5. Thanks, Andrew!

And we need total transparency with all of the AIG bailout money.
Anyone with AIG making 'executive level' compensation should also be investigated for fraud, subject to IRS audits, etc.

[salguine]

6. Karl Rove says you can ignore those.

[pacalo]

7. The bailout money wasn't in the contracts, either.

[earcandle]

8. Fraud?