March 20, 2009
barry was “stunned” but Geithner, ex-president of the NY Federals Reserve Bank was working on TARP before he even got near barry. How stupid do they think we are?
AIG received more than $170 billion, which puts the government – taxpayer’s – stake at about 80 percent. 9 out of the top 10 as well as 15 ou the top 20 have agreed to give the bonus back in full.
Here’s a great recap by REUTERS:
Sept. 16, 2008:
American International Group, the world’s largest insurer, avoids bankruptcy after an $85 billion federal bailout that gives the U.S. government a 79.9% stake in the company.
AIG names Edward Liddy, former Allstate chairman, as chairman and chief executive. He succeeds Robert Willumstad, who steps down after three months on the job.
AIG announces plan to sell assets to repay its loan from the U.S. government. Moody’s Investors Service cuts AIG’s debt ratings, citing the company’s plans to sell assets, limiting the insurer’s ability to do business.
AIG says it had borrowed $70.3 billion from the government as of Oct. 8. AIG draws fire after reports it had spent $223,000 on hotel rooms and spa services days after it got the federal loan.
New York Attorney General Andrew Cuomo says he is investigating “unwarranted and outrageous” spending by AIG. Cuomo seeks a full accounting of “bonuses, stock options, severance payments, gratuities, benefits, junkets and any and all other perks.” He wants AIG to recover or rescind the payments.
So Cuomo was already on to the bonuses. barry gets elected and begins transition.
AIG says the total owed under its $85 billion line of credit from the U.S. government is down to $61.3 billion. AIG companies also had borrowed $19.9 billion under a separate $38 billion securities lending agreement, making the total amount the government had made available to AIG about $123 billion.
AIG says Liddy’s salary will be $1 for the coming year and rules out 2008 bonuses for AIG’s seven top executives. Fifty more executives won’t get raises in 2009, the company says.
AIG and the government agree to clear the insurer of its obligations on about $53.5 billion in bad mortgage debt.
German reinsurer Munich Re says it will buy AIG’s HSB Group for $742 million.
Jan. 26, 2009:
AIG says it is working with Bank of America and Merrill Lynch to sell a fund management business that operates 15 funds with more than $12.4 billion in assets.
The Treasury and the Fed announce a third new aid plan for AIG, putting $30 billion more at its disposal.
AIG once again comes under criticism after reports that its financial products unit is obligated to pay at least $165 million in employee bonuses.
Hardball: timeline of bonuses
Tim Geithner’s AIG Timeline
AIG $165M bonuses after $170B bailout
AIG bonus breakdown
barry on AIG (video)
AIG: Edward Liddy (video)
Tim Geithner on Charlie Rose (video)
Andrew Cuomo: $30M of AIG bonuses will be returned
Andrew Cuomo’s letter to AIG (10-28-08)
Chris Dodd: 33% approval rating