Attorney General Cuomo Letter to AIG CEO Regarding Bonuses

by Sabrina I. Pacifici on March 16, 2009

March 16, 2009 letter from Attorney General Cuomo to Edward M. Liddy, Chairman & CEO of AIG, concerning bonuses: “The Office of the New York Attorney General has been investigating compensation arrangements at AIG since last Fall. 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.”

  • AIG Discloses Counterparties to CDS, GIA and Securities Lending Transactions: “Using funds from the emergency loan, financial counterparties listed on Attachment A (all attachments are posted online at http://www.aig.com/Related-Resources_385_136430.html) received a total of $22.4 billion in collateral relating to CDS transactions from AIGFP between September 16, 2008 and December 31, 2008. This amount represents funds provided to such counterparties after the date on which AIG began receiving government assistance. The counterparties received additional collateral from AIG prior to September 16, 2008.”
  • New York Times: Obama Orders Treasury Chief to Try to Block A.I.G. Bonuses
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