AIG Got 73 employees at least $ 1 million, Cuomo Says
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MarketWatch
17 March 2009 Tuesday 2:27 PM EST
SECTION: NEWS AND COMMENT, and political economy
LENGTH: 648 words
TITLE: 73 AIG employees at least $ 1 million, Cuomo says
Signature: Ronald D. Orol, MarketWatch mailto: rorol@marketwatch.com.
Ronald D. Orol is a MarketWatch reporter based in Washington.
WASHINGTON (MarketWatch) - Insurance giant failed American International Group Inc paid "retention" bonuses of more than $ 1 million to 73 employees, including 11 who no longer work in society, New York Attorney General Andrew Cuomo said Tuesday that the political and public anger over rising premiums.
Lawmakers on Capitol Hill intensified their efforts Tuesday to find a way to recover some of the money paid by AIG (AIG), which received $ 173 billion in federal aid to avoid a bankruptcy that could spread the financial panic around the world.
Several parliamentarians have already passed laws to tax incentives.
On Monday, President Barack Obama said his administration would pursue all legal means to get money. The $ 160 million in premiums were paid to employees of the subsidiary of financial products, the unit that created and sold complex securities that led to the collapse of society.
In a letter sent to Congress Tuesday, Cuomo said he disagreed with AIG that it was bound by contract to pay premiums, noting that the company has renegotiated wages in the same group of employees.
"AIG has more than 73 millionaires in the unit that lost so much money that it brought the company to its knees, forcing a taxpayer rescue," Cuomo wrote in the letter to the House Committee financial services. "Something is deeply wrong with this result."
Cuomo said the contracts required for premiums in 2008 is equal to 2007 bonuses, even if there were clear signs that 2008 would be "catastrophic."
Cuomo said the biggest bonus was $ 6.4 million. Seven employees have more than $ 4 million each, and the top 10 combined $ 42 million. Cuomo led an investigation into bonuses, but has not yet learned the names of those who have been paid, he said.
The chairman of the House Financial Services Committee, Rep. Barney Frank, D-Mass., Said Tuesday that the government should use its controlling interest in the company to force repayment of premiums. Approximately 80% of the company is owned by U.S. taxpayers, who have $ 173 billion riding on the company's fate.
"We must look at AIG as the owner of the company. The time has come to exercise our rights as owner rather than to intervene in contracts between two parties," Frank said at a conference press. "You do not have it, you do not receive bonuses."
Frank added that House Speaker Nancy Pelosi, D-Calif., Is considering legislation that would give the government additional control of the company.
AIG Chairman Edward Liddy, appearing before the committee by Frank on Wednesday, along with the Office of Thrift Supervision Director Scott Polakoff and Government Accountability Office Director Orice Williams. Robert Liddy WILLUMSTAD succeeded in June 2008.
The President of the Senate Banking Committee, Senator Christopher Dodd, D-Conn., Said he wants a full briefing from the Federal Reserve on the conditions of the Fed in May have set AIG executive bonuses. "We also want answers in the case of the Fed has been on the conditions of these types of premiums since the beginning of the relief effort."
May the White House try to use $ 30 billion that was promised to AIG but not yet paid search as leverage to obtain concessions on premiums.
At the same time, lawmakers on Capitol Hill are considering changes to the tax code to limit the premiums to AIG.
Rep. Gary Peters, D-Mich., Introduced a bill that would impose a surcharge of 60% on premiums over $ 10,000 paid by a company where the government has more than 79% of the capital. Currently, the wording of the bill would apply only to AIG.
The other members of the House have passed similar legislation. Rep. Steve Israel, DN.Y., introduced a bill that increases taxes on premiums for federal bailout of corporate capital.
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LOAD-DATE: 18 March 2009
Copyright © 2009 LexisNexis, a division of Reed Elsevier Inc.. All rights reserved
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MarketWatch
17 March 2009 Tuesday 2:27 PM EST
SECTION: NEWS AND COMMENT, and political economy
LENGTH: 648 words
TITLE: 73 AIG employees at least $ 1 million, Cuomo says
Signature: Ronald D. Orol, MarketWatch mailto: rorol@marketwatch.com.
Ronald D. Orol is a MarketWatch reporter based in Washington.
WASHINGTON (MarketWatch) - Insurance giant failed American International Group Inc paid "retention" bonuses of more than $ 1 million to 73 employees, including 11 who no longer work in society, New York Attorney General Andrew Cuomo said Tuesday that the political and public anger over rising premiums.
Lawmakers on Capitol Hill intensified their efforts Tuesday to find a way to recover some of the money paid by AIG (AIG), which received $ 173 billion in federal aid to avoid a bankruptcy that could spread the financial panic around the world.
Several parliamentarians have already passed laws to tax incentives.
On Monday, President Barack Obama said his administration would pursue all legal means to get money. The $ 160 million in premiums were paid to employees of the subsidiary of financial products, the unit that created and sold complex securities that led to the collapse of society.
In a letter sent to Congress Tuesday, Cuomo said he disagreed with AIG that it was bound by contract to pay premiums, noting that the company has renegotiated wages in the same group of employees.
"AIG has more than 73 millionaires in the unit that lost so much money that it brought the company to its knees, forcing a taxpayer rescue," Cuomo wrote in the letter to the House Committee financial services. "Something is deeply wrong with this result."
Cuomo said the contracts required for premiums in 2008 is equal to 2007 bonuses, even if there were clear signs that 2008 would be "catastrophic."
Cuomo said the biggest bonus was $ 6.4 million. Seven employees have more than $ 4 million each, and the top 10 combined $ 42 million. Cuomo led an investigation into bonuses, but has not yet learned the names of those who have been paid, he said.
The chairman of the House Financial Services Committee, Rep. Barney Frank, D-Mass., Said Tuesday that the government should use its controlling interest in the company to force repayment of premiums. Approximately 80% of the company is owned by U.S. taxpayers, who have $ 173 billion riding on the company's fate.
"We must look at AIG as the owner of the company. The time has come to exercise our rights as owner rather than to intervene in contracts between two parties," Frank said at a conference press. "You do not have it, you do not receive bonuses."
Frank added that House Speaker Nancy Pelosi, D-Calif., Is considering legislation that would give the government additional control of the company.
AIG Chairman Edward Liddy, appearing before the committee by Frank on Wednesday, along with the Office of Thrift Supervision Director Scott Polakoff and Government Accountability Office Director Orice Williams. Robert Liddy WILLUMSTAD succeeded in June 2008.
The President of the Senate Banking Committee, Senator Christopher Dodd, D-Conn., Said he wants a full briefing from the Federal Reserve on the conditions of the Fed in May have set AIG executive bonuses. "We also want answers in the case of the Fed has been on the conditions of these types of premiums since the beginning of the relief effort."
May the White House try to use $ 30 billion that was promised to AIG but not yet paid search as leverage to obtain concessions on premiums.
At the same time, lawmakers on Capitol Hill are considering changes to the tax code to limit the premiums to AIG.
Rep. Gary Peters, D-Mich., Introduced a bill that would impose a surcharge of 60% on premiums over $ 10,000 paid by a company where the government has more than 79% of the capital. Currently, the wording of the bill would apply only to AIG.
The other members of the House have passed similar legislation. Rep. Steve Israel, DN.Y., introduced a bill that increases taxes on premiums for federal bailout of corporate capital.
Marketwatch.com © 1997-2002, All rights reserved. See details in http://custom.marketwatch.com/custom/docs/useragreement.asp.
LOAD-DATE: 18 March 2009
Copyright © 2009 LexisNexis, a division of Reed Elsevier Inc.. All rights reserved
Terms and Conditions Privacy Policy
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