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Liddy: We'll Try To Cooperate With Probe -- But No Promises!
Here, despite the efforts of Rep. Gary Ackerman, AIG CEO Liddy resists saying that he'll cooperate fully with Andrew Cuomo's investigation into those bonuses...
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Josh
Zachary
A few quick facts about Liddy:
He worked at Ford Motor Co. before joining G. D. Searle & Co. in 1981, when Donald Rumsfeld was CEO; in 1988, he joined Sears, Roebuck & Co.
Liddy oversaw Allstate's spinoff from Sears in 1995 and was named CEO of Allstate four years later. In 2005, Hurricanes Katrina, Rita, and Wilma cost the insurer more than $5 billion combined. Allstate quickly started an effort to scale back the coverage of homes in catastrophe-prone regions.
Just before Liddy took over as Allstate CEO, he told a meeting of about 200 managers that some of them would not be around in a year. Later, he ousted the finance chief and investment officers.
In September 2008, Treasury Secretary Henry Paulson chose Liddy to head American International Group. Five years earlier, when Paulson was running Goldman Sachs Group, he also selected Liddy to join that board.
In October 2008, just days after AIG received an emergency $85 billion loan from the government, about 70 executives spent a week at the St. Regis resort in Monarch Beach, Calif. The group ran up a bill that included $200,000 for rooms, $150,000 for meals, and $23,000 for the spa.
March 18, 2009 5:53 PM | Reply | Permalink
Wonder if AIG had any losses in the wake of Katrina,one of the years that Liddy was CEO?
Allstate was the center of clas action suits by policy holders for attempting to deny policy claims of hurricane stricken policy holders.So much for honoring contracts!
It is astonishing how the hand of Paulson and Goldman Sachs continues to show itself.
[According to Inhofe,Paulson threatened martial law back in November,2007,upon demand of initial TARP money.]
Now,it is reported that Paulson tapped Liddy to head AIG in 2008-after Liddy left ALlstae-and 3 years after Katrina.
March 18, 2009 5:59 PM | Reply | Permalink
Hurricane Katrina
THURSDAY, FEBRUARY 19, 2009 4:00:00 PM
State Farm, Allstate dismissed from Louisiana Katrina case
BY JOHN O'BRIEN
NEW ORLEANS (Legal Newsline) - Two insurance giants will be dismissed from a whistleblower lawsuit over their post-Hurricane Katrina practices because they are already facing one initiated by disgraced plaintiffs attorney Richard "Dickie" Scruggs.
Wednesday, the federal Fifth Circuit Court of Appeals affirmed the dismissal of allegations that State Farm Insurance Cos. and Allstate Insurance Co. cheated the federal flood insurance program, yet reinstated the suit against several other defendants.
The suit was filed by Branch Consultants, a group of former claims adjusters, who said several insurance companies misrepresented the amount of damage done during 2005's Katrina by wind (covered by policies) and water (covered by the federal program).
The opinion from a three-judge panel said that forcing Allstate and State Farm to fight a suit in Louisiana similar to one filed in Mississippi would contradict the False Claims Act's goal of preventing "parasitic" whistleblower cases.[Excerpt]
March 18, 2009 6:03 PM | Reply | Permalink
He'll TRY?! Do or do not, there is no try.
And why can't Cuomo throw his ass in jail if he doesn't cooperate?
These people are scum - of course 20 years in corporate America taught me that.
March 18, 2009 6:21 PM | Reply | Permalink
According to Inhofe,Paulson threatened martial law back in November,2007,upon demand of initial TARP money.]____________________________
CORRECTION: That should be November,2008
Additionally,for clarification purposes,Liddy was CEO of Allstate when Katrina,Rita and Wilma hit the Gulf Coast in 2005.
March 18, 2009 7:22 PM | Reply | Permalink