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Cuomo: I'll Release Names Of AIG Bonus Recipients
It hasn't gotten much attention, but New York Attorney General Andrew Cuomo said yesterday that he'd publicly release the names of the AIG bonus recipients, reports the New York Times.
Cuomo is investigating the payouts, as well as those made by Merrill Lynch and several other Wall Street firms. He issued a subpoena for the AIG names earlier this week.
His declaration followed the news that a court has ruled that Bank of America, which owns Merrill, must give him the names of the Merrill recipients. That ruling suggests that Cuomo will likely also get the AIG names. AIG lawyers had referred frequently to the Merrill case this week, and had delayed giving Cuomo the names pending the outcome of that case.
Yesterday, AIG CEO Edward Liddy declined to assure Congress he would cooperate fully with Cuomo's probe, citing concern for the physical safety of employees who received bonuses, were their names to be made public.
Josh
Zachary
Coming from the TPM main site (pointed there by DailyKos) the use of RICO investigations and possible indictments seems an appropriate avenue of pursuit with regard to AIG and a number of these national and international financial institutions, and not simply on the bonus/ retention fouls.
While management, oversight, and control should go to Holder at DOJ with support from the FBI, would this situation be better handled by appointing Cuomo as a Special Prosecutor? Cuomo's team seems in place and active. He certainly speaks cogently to cameras and Congress.
There are obvious political benefits for Cuomo in NY. For Holder and Obama there are not only political benefits, but saving costs, resources, and "spinouts" could prove decisive when trying to control the agenda.
March 19, 2009 11:07 AM | Reply | Permalink
I bet there will be a rush of folks giving back their bonus - in hopes of getting their name off the list. Or onto the list of people who "voluntarily" gave back the money. Real volunteers would have done so already!
March 19, 2009 12:00 PM | Reply | Permalink
I understood Liddy to say that some of the execs had already returned their bonus money? Could I mis-remembered and it was AIG? It wouldn't be so bad if those execs hadn't been in the division that caused the problem to start with.
March 19, 2009 12:09 PM | Reply | Permalink
Why is nobody (on the hill) emphasizing the purpose of bonuses? At one time it was only for successful performance. I have been wondering for years why so much (in all sectors) is being paid out for nonperformance. Insanity.
March 19, 2009 12:36 PM | Reply | Permalink
I do not understand how Liddy was able to say that he would not cooperate with the investigation. Did he not just admit to what we call 'obstruction'? Or is he going to sit on his hands and force Cuomo to issue subpeonas, which, I guess, is his right?
Also, I am a little bit puzzled about everybody's surprise over the counterparty payments. Where did people think the money was going to go? AIG is an insurance company that went bankrupt. It went bankrupt because it insured worthless CDS for a great deal of money. When the holders of the policies (the counterparties) submitted their claims and AIG did not have the money to pay them then at that point they become, simply, a passthrough organization. Since it would be politically impossible, and militarily dangerous, to cancel the policies of the foreign banks and nations that bought them then we have to honor those policies. The sovereign wealth funds have already sent sharply worded messages to our government indicating that they intend to be paid back in full. Wars have been started for far less money than this. Therefore, AIG is nothing more than a conduit for taxpayer money to the holders of those insurance policies, be they foreign or domestic.
Am I wrong about this? Because this is how I have been thinking about it since this whole thing began and I would appreciate any greater insight.
March 19, 2009 12:45 PM | Reply | Permalink
Hugh:
You are making the false assumption that the banks in different countries are separate and distinct from one another. They are not.
The same people controlling the large banks in the USA are the same people who are controlling the banks in the rest of the world with the possible exceptions of China and North Korea, although even the Bank of China is now partly owned by "foreigners".
It is very easy to move money around the globe and these banks have been effectively insuring themselves against losses. Therefore, the counterparties are basically themselves.
The sad part of all these financial excursions into fraud and bankruptcy is that the US taxpayer is being asked to cough up money to cover their poor judgement (if it is not a deliberate scam) and bail them out at the inflated prices they have placed on their securities.
.
March 20, 2009 11:27 AM | Reply | Permalink
Cuomo, a State Attorney General, is taking charge of an issue that supposedly Obama assumes full responsibility for (whatever that means). Huh?
I think it's time the Obama Administration starts taking their whoop ass vitamins. It's looking more and more like there are a log of tails out there wagging the dog. Image does matter. Substance, less so.
March 19, 2009 2:17 PM | Reply | Permalink