Sign in to wowOwow

Enter the email address that you used when registering at wowOwow.
The password field is case sensitive. Click here if you have forgotten your password.

Please register for wowOwow

Newsletter subscriptions
Sign up to receive wowOwow's weekly newsletter and get our best picks delivered right to your inbox. Our newsletter content is hand-picked by the wowOwow editorial team and provides the top features, news, and commentary from our site. Subscribing to our newsletter is free and safe. We will never share your email or other information with a third-party without your direct consent.
By registering, you indicate that you have read and agree
with our privacy policy and terms of service.

Andrew Cuomo Investigates AIG | 03/27/2009 9:30 am

NY Attorney General Andrew Cuomo Hits AIG Again Over Bank Payouts

Cuomo probing whether AIG improperly used taxpayer money to pay big banks to make up for toxic credit-default swaps
By The Staff at wowOwow.com
© Getty Images

AIG can’t catch a break these days.

As many employees continue to receive death threats just for having the insurance giant’s name on their résumés, New York Attorney General Andrew Cuomo has subpoenaed the firm to find out whether bailout bucks went to pay customers like Goldman Sachs ($12.9 billion), Deutsche Bank ($12 billion), Societe Generale ($12 billion) and other banks to make up for the nasty toxic credit-default swaps they bought from AIG.

"Our investigation into corporate bonuses has led us to an investigation of the credit default swap contracts at AIG," Cuomo said. "CDS contracts were at the heart of AIG’s meltdown. The question is whether the contracts are being wound down properly and efficiently or whether they have become a vehicle for funneling billions in taxpayers dollars to capitalize banks all over the world."

AIG’s payments to the banks have raised more eyebrows in Congress, as anger over the $167 AIG bonuses still simmers. In fact, Rep. Barney Frank’s House Financial Services Committee on Thursday approved a bill that would retroactively prohibit bailout recipients from paying certain bonuses until they return taxpayer money. But at least one House member says he regrets voting for a bill that would tax the AIG bonuses up to 90 percent. 

Sen. Jeff Sessions, R-AL, said the past and present Treasury secretaries haven’t kept enough tabs on where the bailout money is going. Rep. Elijah Cummings, D-MD, led the call this week for a federal investigation into whether banks received more funds than necessary from the AIG bailout, while, Bloomberg notes, Nobel Prize-winning economist and former Obama adviser Joseph Stiglitz called the payouts "grand larceny."

Needless to say, the AIG anger doesn’t seem to be winding down anytime soon!

16 Reader Comments (so far…) Sign In or Register to comment

Libra Lady
Keep angering the people over AIG, and someone  is going to get hurt, possibly an  innocent family member….then what????  Countries have to be laughing at the US right now….how we turn on our own people!!!!  Are we truly "Proud To Be An American" anymore?
By Libra Lady on 03/27/2009 9:42 am
deber B
It’s ridiculous.  These people signed an agreement and it is a binding contract.  Dodd?  Geithner?   Obama?   Hello?
By deber B on 03/27/2009 9:45 am
L. C.
It’s okay for these greedy thugs to fly to Washington on private jets, beg for cash , get the cash then return home and divide the spoils?
By L. C. on 03/27/2009 11:37 am
deber B
These people signed a contract and Dodd and Geithner knew it.   Can’t deny that.
By deber B on 03/27/2009 11:46 am
f p
Deber, contracts are a piece of paper and are broken all the time.  At least we’re seeing some responsible people at AIG giving back the money. For that we can be grateful.
By f p on 03/30/2009 5:33 am
deber B
That is true but obviously the question is "why did Dodd and Geithner knowingly leave the bonus clause in?"   I’m more interested in that answer.
By deber B on 03/30/2009 6:26 am
L. C.
I applaud Cuomo! He’s doing a great job! If there is corruption it should be exposed!
By L. C. on 03/27/2009 11:33 am
Lady Gator

Cuomo is doing this for Cuomo!  Pure and simple.   This little exercise will go on his resume.  Then when he runs for President he can show — "see folks we got those nasty, greedy, rich guys."  And, this nasty crap will continue.  And, I note that he’s in the same article with Barney (take the money and run) Frank — good company there Cuomo! 

You, Mr. Cuomo, and Mr. Frank, also signed a contract with the people who elected your fannies to uphold the constitution of the United States.  Looks like you both need to go to the Congressional Library and read up on the laws governing this nation.  You are both to be pitied. 

By Lady Gator on 03/27/2009 1:49 pm
deber B
No corruption….just a legally binding contract.
By deber B on 03/27/2009 11:47 am
C Hardy

It will take for a bombing of the AIG building before the Govt will keep this information private…Its a shame they got bonus’ but for other AIG employees to get death threats and to be spat on going in and our of the building is just awful.  Most of the bonus’ went to employee’s overseas not here in the US

 

By C Hardy on 03/27/2009 12:15 pm
Libra Lady
C….what a great picture of your little girl…..so precious!!!!
By Libra Lady on 03/28/2009 3:38 pm
C Hardy
Thank You!
By C Hardy on 03/30/2009 7:06 am
Tee Zee
Go Andrew go…!
By Tee Zee on 03/27/2009 1:12 pm
caj p
I think we have rather gone over the top with AIG, they were at fault we all know that and people were correct to be mad but this ongoing thing with Cuomo is going too far now.  You have to wonder is there a another motive behind his constant need to keep this going, we don’t want to see anybody hurt physically over this.  They have been shamed and most are doing the right thing by handing the money back, but  a lot of the money is overseas anyway.  I think he’s flogging a dead horse now.
By caj p on 03/27/2009 2:41 pm
DeBúrca obj
The total focus on this has become another distraction from the bigger picture… the system of deregulation that was set up to allow this situation to happen in the first place.
By DeBúrca obj on 03/28/2009 2:09 am