Andrew Cuomo Investigates AIG | 03/27/2009 9:30 am
NY Attorney General Andrew Cuomo Hits AIG Again Over Bank Payouts

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
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.
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.