Connecticut AG says AIG bonuses higher than reported

Posted Mar 23rd 2009 8:40AM by Zac Bissonnette
Filed under: Law, Scandals, Amer Intl Group (AIG)

Connecticut Attorney General Richard Blumenthal has been pawing through the data on American International Group's (NYSE: AIG) post-bailout bonus payments, and he's uncovered a bit of a discrepancy. Blumenthal says that the bonus payments totaled $218 million -- more than 30% higher than the widely reported $165 million figure.

Blumenthal said he isn't sure of the reason behind the discrepancy, and AIG denies that the discrepancy exists. Either way, Blumenthal isn't happy about it.

"These contracts rip the rug from under AIG's excuses -- revealing no basis under Connecticut law for these mega taxpayer-funded bonuses," Blumenthal said. "AIG's own documents reveal that it turned an emergency bailout into a meritless handout, paying windfalls to employees as reward for financial failure."

"Taxpayers feel misled and manipulated," he continued. "We must fight, with every legal remedy available, to recapture every cent of these scarce taxpayer resources. AIG relied on contracts and Connecticut law as a flimsy and fatally flawed legal camouflage to reprehensibly enrich employees."

Blumenthal is engaging in the same kind of strongly-worded, populist chest-pounding posturing that made Eliot Spitzer a national icon but like Spitzer, he's making some important points. If it turns out that AIG's "We had no choice" explanation for paying the bonuses is inaccurate, the bonus scenario becomes very, very different.

If AIG didn't have to pay those bonuses, then there is absolutely no excuse for not rescinding them.

Tags: AIG, American International Group, AmericanInternationalGroup, Bailout, Bonuses

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Reader Comments (Page 1 of 1)

3-23-2009 @ 9:49AM

John said...

I don't get it? No one ever seems to talk about the real culprit behind our entire economic collapse -- Hank Greenberg, former head of AIG who presided over the set up and funding of all the business units that ultimately led to the downfall of the entire US economy. And what did he get for that? He was allowed to cash out $4B worth of AIG stock before the collapse. And to boot, no one even thinks about pointing a finger his way. He was even so bold as to recently hire a PR firm to help him attack AIG as if he had nothing whatsoever to do with what was happening at AIG. He did so to try to head off any possible future finger pointing at him. Smart, but not smart enough if any of the reporters in our so called journalistic system figure it out and finally get the story right. Maurice (Hank) Greenberg makes Bernie Madoff look like a small time chiseler.. Talk about a pyramid scheme. Greenberg had the entire US economic system fooled and now no one even talks about him -- they are pointing at the poor SOB now running AIG who is doing it for $1 per year? Please, someone, get this story right!

3-23-2009 @ 1:12PM

BHarrison said...

The key to the "NEW American REVOLUTION" is keeping the pressure on about exposing all of the FRAUDS, CORRUPTIONS, and INEQUITIES of the business enterprises and the complicity and duplicity of the VAST MAJORITY of Congressmen.

So far, the surface has only been scratched to exposed the most flagrant and blatant of the exesses involved in all of these matters. As is said: ". . . and the truth shall set you free." Remember Deepthroat's admonitions in the WaterGate scandal: "Follow the money . . . follow the money to reveal who the guilty parties are . . ."

It is time for the American people to diligently and dogmatically persist in exposing the corporate and political corrupt that has devastated our national economy, and "embezzled or defrauded" just about EVERY American citizen.

As the French philosopher Rousseau stated: "People have the government (and business enterprises) that they deserve . . ." If the people tolerate fraud and corruption, then that is what they deserve. It's time for the American people to rise up against these political and business crimes.