Begin forwarded message:
From: dasg...@aol.com
Date: March 19, 2009 11:50:47 PM PDT
To: ramille...@aol.com
Cc: ema...@aol.com, j...@aol.com, jim6...@cwnet.com,
l...@legitgov.org, countd...@msnbc.com
Subject: Bush's Treasury Dept (Hank Paulson) Approved of Bonuses for
AIG's Bad Actors
AIG Bonuses Contemplated in ‘08, TARP Inspector Says
By Jonathan D. Salant
http://www.bloomberg.com/apps/news?pid=20601110&sid=aBwUb_K6GQ7s
March 19 (Bloomberg) -- President George W. Bush’s administration
“specifically contemplated” paying bonuses to American International
Group Inc. employees in its November [2008] agreement to provide
federal bailout funds to the insurance giant, the inspector general
for the Troubled Asset Relief Program said today.
Neil Barofsky testified before the House Ways and Means oversight
subcommittee. The panel held a hearing on the TARP program, which so
far has spent $300 billion trying to reverse the financial meltdown.
The TARP contract between AIG and Treasury “specifically contemplated
the payment of bonuses and retention payments to AIG employees,
including AIG’s senior partners,” Barofsky said.
The insurer has received $173 billion in federal bailout funds and is
now 80 percent owned by the government.
Lawmakers in both parties have expressed outrage at New York-based
AIG’s decision to pay $165 million in executive bonuses after taking
government money. AIG also budgeted $57 million in “retention” pay to
former employees, according to a March 2 filing with the Securities
and Exchange Commission.
Members of the U.S. Senate and House are looking at ways to recover
the bonuses. AIG Chairman Edward Liddy said yesterday that employees
who received payments of at least $100,000 have been asked to return
half.
No Control
Democratic and Republican subcommittee members said there was no
control over the TARP money.
“This entire program is based on trust, trust in the givers and trust
in the takers,” said Subcommittee Chairman John Lewis, a Georgia
Democrat. “At this point, there is no trust.”
“Taxpayers have every right to be angry that the results of the $700
billion bailout are as blank as the check that authorized it,” said
Representative Dave Reichert, a Washington Republican. “We have an
obligation to them to find answers, to collect facts and data, and to
hold accountable the policies and people that led to abuses like those
at AIG.”
The inspector general said he is working with the Justice Department
and New York State Attorney General Andrew Cuomo to see how to recover
the bonus money.
“I, too, am frustrated with these very substantial bonuses given at a
time when AIG would have by now been in bankruptcy proceedings but for
huge, repeated infusions of government money,” Barofsky said.
Feeling the pinch at the grocery store? Make dinner for $10 or less.
