Subpoena lands on AIG desk after failure to detail bonuses
New York’s Attorney General Andrew Cuomo yesterday subpoenaed AIG after it refused to detail who received what as part of the $165m dollar bonus package.
The action followed a letter to AIG boss Ed Liddy. That said: “We have requested the list of individuals who are to receive payments under this retention plan, as well as their positions at the firm, and it is surprising that you have yet to provide this information. Covering up the details of these payments breeds further cynicism and distrust in our already shaken financial system.
“In addition, we also now request a description of each individual's job description and performance at AIG Financial Products. Please also provide whatever contracts you now claim obligate you to make these payments. Moreover, you should immediately provide us with a list of who negotiated these contracts and who developed this retention plan so we can begin to investigate the circumstances surrounding these questionable bonus arrangements.
“Finally, we demand an immediate status report as to whether the payments under the retention plan have been made. We need this information immediately in order to investigate and determine:
- (l) whether any of the individuals receiving such payments were involved in the conduct that led to AIG's demise and subsequent bailout;
- (2) whether, as you claim, such individuals are truly required to unwind AIG Financial Product's positions;
- (3) whether such contracts may be unenforceable for fraud or other reasons; and (4) whether any of the retention payments may be considered fraudulent conveyances under New York law.”
After AIG missed his deadline Cuomo took legal action.
who had demanded the information by 4pm yesterday, vowed to subpoena The Telegraph also reported that the US Treasury may change the terms of the most recent aid offered to AIG in a bid to recoup the bonus payments.
“Officials working under Treasury Secretary Tim Geithner are looking into how they might tweak a recent agreement for a further $30bn of fresh capital for the beleaguered insurer, which was injected on top of $143bn of aid since the company almost collapsed in September,” the paper said.
