aig

AIG Bonus Names Come Out; Murder Still Illegal

Hamilton Nolan · 03/18/09 08:42AM

All Americans are currently home sharpening their hatchets, consumed by burning class rage, thinking of how they can't wait to gut those AIG bonus bastards like a fish. And now we know some names!

Three AIG Execs Outed

cityfile · 03/18/09 06:15AM

Given how much anger has been stirred up by the bonus debacle at AIG, it was only a matter of time before some previously anonymous exec at the insurance giant walked out his front door to find a reporter and photographer standing in his driveway. The Post uncovered a few names yesterday and then headed up to Connecticut to, you know, say hello and ask a few questions. None of the three—James Haas (left), Douglas Poling, and Jonathan Liebergall—were willing to say much, not surprisingly, although AIG may end up making a few extra bucks out of the saga: Considering they've now been publicly identified, we're guessing all three will be looking to take out much more generous life insurance policies today. [NYP]

The Claws Are Out on Capitol Hill

cityfile · 03/18/09 05:36AM

• The AIG mess rolls on. Lawmakers are up in arms. Voters are pissed. Tim Geithner is on the defensive. President Obama's agenda has been disrupted. And AIG chief Ed Liddy will get to see some of the emotion first hand when he turns up on Capitol Hill later today to face the music. [NYT, WSJ, BN]
• Billions used to bail out AIG may end up benefiting the hedge funds that made big bets that the housing market was going to crumble. [WSJ]
• As the pressure mounts on Tim Geithner, here's a roundup of all the things he's gotten wrong, just in case you need a little refresher. [BI]
• The State of New Jersey has filed suit against Lehman for fraud. [CNN]
• Citigroup's chief economist is leaving the bank to take a senior position at the Treasury Department. Somehow this is entirely fitting. [DBK]
• The fact that Citi has four new board members may not bode well for Vikram Pandit and his chances of remaining in charge of the bank. [NYP]
• Warren Buffett owns 20% of Moody's, so when he talks about the broken financial system, you won't hear him talk much about rating agencies. [NYT]
• In the FT, Hank Paulson says it's time to reform the financial system. Thanks for sharing. And thanks for coming to that conclusion just now. [FT]

Public Outrage Hits a Speed Bump

cityfile · 03/17/09 02:05PM

It's hard to quibble with the sentiment expressed by the Brooklyn resident who used the back window of this handsome Dodge here to voice his/her frustration with the situation at AIG. But would it be too much to ask that the person get the name of the company right? Guess it's a good thing that no attempt was made to actually write out "American International Group." [NewYorkShitty]

The Trust Wristband: A Must for Any State or Federal Regulator

cityfile · 03/17/09 11:43AM

Here's an accessory that Andrew Cuomo should really consider keeping around the office so he's prepared the next time he grills another Wall Street CEO: the Truth Wristband Kit that was just released by Make magazine. How does it work? "The wearable device dynamically reflects your psycho-emotional response to the world, promoting internal states to be externalized and made into interactive forms of expression. Measuring the galvanic skin response (a marker of emotional arousal commonly used in lie detector tests), this device's lights turn from blue to red as the wearer becomes aroused." In other words, Bank of America CEO Ken Lewis and the boys at AIG don't stand a chance. [Make]

Cuomo Releases AIG Bonus Info

cityfile · 03/17/09 10:42AM

Andrew Cuomo has some fresh detail on where all those AIG bonuses were directed: The attorney general says 73 employees of the company received more than $1 million and one lucky AIGer took home a $6.4 million bonus. Sadly, he didn't list the recipients by name, so you won't be able to go over to their homes and ask for your money back. Not yet, at least. [NYT/Dealbook]

AIG Isn't Just Wasting Its Money on Big Bonuses

cityfile · 03/17/09 08:36AM

AIG has sparked quite the scandal in recent days for paying out $165 million in bonuses even after accepting more than $150 billion in assistance from the U.S. government. Execs at the insurance giant maintain the company is legally bound to follow through with the payments since the bonuses were incorporated into contracts it signed last year. But that's not the only legal agreement that has AIG wasting its cash: The company continues to pay for the privilege of stamping its logo on the jerseys worn by Manchester United players, too.

The Outrage Over AIG Continues

cityfile · 03/17/09 05:33AM

• The epic fallout from AIG's decision to pay out bonuses enters a second day: Andrew Cuomo says he plans to subpoena company execs, the Obama administration is scrambling to cool emotions, but clearly his influence is limited. Sen. Chuck Grassley of Iowa has suggested that AIG execs follow a "Japanese model" and choose between "apology or suicide." [NYT, ABC, WSJ]
• Given the new restrictions on Wall Street bonuses, banks are now looking for loopholes and planning to boost base salaries to offset lower bonuses. [WSJ]
• Goldman Sachs is bailing out its own employees: It's offering to lend money to more than 1,000 employees who've been squeezed by the crisis. [NYT]
• Mortgage fraud is at an all-time high, but you probably figured that. [CNN]
• Unsurprisingly, banks are raising interest rates and cutting credit lines. [BN]
• Housing starts surged in February from a record low the month before. [BN]

What in the World Is AIG Thinking?

cityfile · 03/16/09 01:10PM

Andrew Cuomo is demanding answers. President Obama said today that he "choked up with anger" when he heard the news. The news media is up in arms. And now the Treasury Department says it plans to do whatever it can to block as much as $30 billion in government aid if AIG doesn't revert course and cancel the $165 million in bonus payments that it says it is compelled to hand out to company execs. Why in the world is AIG going ahead with the plan when doing so pretty much guarantees its reputation will end up ranking up there with Enron and Bernard L. Madoff Investment Securities?

Cuomo Launches Assault on AIG

cityfile · 03/16/09 11:45AM

You didn't expect Andrew Cuomo to remain on the sidelines after AIG dropped the bomb this weekend that it plans to go ahead with $165 million in bonus payments, did you? Of course not. Cuomo sent a letter to AIG CEO Ed Liddy earlier today demanding more info on the compensation plan. He set a 4pm deadline and said if he doesn't receive the info by then, he'll issue subpoenas and "potentially seek court enforcement." The letter he sent the company is below.

AIG In the Crosshairs—Again

cityfile · 03/16/09 05:33AM

• Is AIG officially the most despised company in America? Following the disclosure over the weekend that execs planned to go ahead with $165 million in bonuses to top execs comes word that a good deal of the billions in bailout money it received went to banks like Goldman Sachs ($12.9 billion), Merrill Lynch ($6.8 billion), and Bank of America ($5.2 billion). [BN, NYT, WSJ]
• Larry Summers: "There are a lot of terrible things that have happened in the last 18 months, but what's happened at AIG is the most outrageous." [BN]
• UBS plans to cut another 5,000 jobs. [Reuters]

Wisps of Hope, Cramer Accepts His Beating

cityfile · 03/13/09 05:58AM

• Investors are finding "wisps of hope" in the current not-so-bad economic news, so the three-day winning streak on Wall Street may continue today. [DB]
• AIG reached out to Warren Buffett twice before ultimately collapsing. [BN]
• Citigroup is looking at adding four new people to the company's board. [WSJ]
• Ken Lewis seems to be sending signals he wants out of BofA. [Dealbreaker]
H. Rodgin Cohen is out of the running to be deputy Treasury secretary. [DB]
• There's already chatter that Treasury Secretary Tim Geithner may get pushed aside in favor of—yes, you guessed it—Steve Rattner. [BI]
• How bad is it for hedge funds? John Paulson was up 38 percent last year and he still lost 16 percent of his assets during the last half of 2008. [Portfolio]
• Two things you never expected to see: A meek, frightened Jim Cramer on national television. And a comedian talking about CDOs. [The Daily Show]