[My reaction when I heard about this bonus nonsense was "Bonus.....Why aren't these guys in jail?" I guess others may have had that thought too.]
MARCH 20, 2009, 1:48 P.M. ET States Launch Joint AIG Probe By LIAM PLEVEN Wall Street Journal http://online.wsj.com/article/SB123755961040795697.html A coalition of 19 state attorneys general is launching an investigation into controversial bonuses paid to employees at American International Group Inc.'s financial products unit, whose woes brought the insurer to its knees last year. New Jersey's attorney general, Anne Milgram, notified the company of the probe in a letter signed by her counterparts in 18 other states. The letter said the officials wanted to "ensure the investing public, as was promised, that money received by the company is being utilized to improve the financial welfare of the company, not to pad the pockets of the same individuals who led to the financial crisis in the first place." It said the probe was looking into "potential fraud" under New Jersey law, as well as other potential violations of state law. The letter, dated March 19, demanded that the company provide a list within five business days of all employees at the unit who got bonuses since September 2008, when the government stepped in with a bailout that rescued AIG from potential bankruptcy. The government has committed up to $173.3 billion to aid AIG. The letter also asked for copies of all employment contracts with people who got bonuses, and a list of the people who were involved in negotiating the compensation contracts AIG committed to pay about $450 million in retention payments at the unit in early 2008, months before the bailout. AIG has argued that it is essential to keep employees from leaving in order to minimize potential losses during the wind down of the unit, which has about $1.6 trillion in outstanding trades, largely distinct from the complex derivatives that have caused the company trouble. An AIG spokesman said the company received and was reviewing the letter. -- ================================ George Antunes, Political Science Dept University of Houston; Houston, TX 77204 Voice: 713-743-3923 Fax: 713-743-3927 Mail: antunes at uh dot edu *********************************** * POST TO [email protected] * *********************************** Medianews mailing list [email protected] http://lists.etskywarn.net/mailman/listinfo/medianews
