March 30, 2009
Timeline provided by the White House via LYNN SWEET:
Secretary Geithner finds out about impending bonuses
Even though he was president of NY Federal Reserve Bank prior to becoming Treasury Secretary. If I had the time and inclination I would go back and find some of his quotes from September and October. Same with barry and Biden.
After 6pm, Geithner calls Liddy to express outrage and says payments are unacceptable and Liddy need to go back and renegotiate.
Secretary Geithner and Treasury lawyers look for legal solutions to not paying the bonuses.
Liddy said the company had entered into the bonus agreements in early 2008 before AIG got into severe financial straits and was forced to obtain a government bailout. Who can possibly believe this? They claim the bonuses were “retention” incentives to keep the “best people: working for them and yet 11 of the people who got the bonuses have already left AIG – including to the top bonus getter $4.6M.
Secretary Geithner informs the White House. Later in the day, senior aides inform the President.
Secretary Geithner and Treasury lawyers continue looking for legal solutions to not paying the bonuses.
Secretary Geithner and Treasury lawyers continue looking for legal solutions to not paying the bonuses until the last possible legal moment.
Secretary Geithner speaks with Liddy again and after some back and forth, AIG agrees to:
- Cut bonuses in half and to stretch the exec bonuses (that fall outside our contract with them and our FSP rules) out overtime, so that execs are more on the hook for the successful wind down of the company, which is the best way to protect taxpayers
- [Rather than the Senior Partners (top approx. 50 people) getting an aggregate of $9.6M in bonus now, they will get 50% in cash now (avg. payment of approx. $112K), plus 25% on July 15 and 25% on September 15 (avg. payments of approx $56K each). However, both of the 25% payments will be contingent upon the Board finding that the steps in the disposition plan are being met at each payment date.]
- Renegotiate and reduce 2009 retention bonuses.
Recoup the money in 30 billion AIG restructuring agreement
Following the conversation, Secretary Geithner asks for Liddy letter to codify the changes.
SATURDAY AND SUNDAY (3-14 & 15)
Following deadline on Friday, treasury attorneys continue to look at legal solutions for recoupment.
SUNDAY EVENING (3-15)
POTUS asks the economic and legal team to continue looking for ways to recoup the bonuses.
barry in classic obamanator form gets involved after the bonuses were paid out on the 15th even though the WH confirmed he was notified on the 12th.
Folks, do you like having a president with no spine?
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