New York Attorney General Andrew Cuomo says AIG must give back the money it has blown on executive perks and payouts or face sanctions.
“In the last several months, as AIG was teetering toward bankruptcy, and operating with unreasonably small capital, AIG nevertheless made numerous extraordinary expenditures in the form of executive payments, junkets and perks for its executives,” Cuomo wrote to the company’s board.
“We demand that the board of directors cease and desist any such further expenditures, and review, rescind, and recover all past unreasonable expenditures,” Cuomo wrote.
AIG got $85 billion in the form of a federal loan to save the company, America’s largest insurer, from collapse.
Since then, media reports have shown the company spent hundreds of thousands to send executives on a beach retreat in California and tens of thousands more for a hunting trip in England, again for executives.
Cuomo is upset, too, about a $5 million cash bonus and $15 million golden parachute awarded to former AIG CEO Martin Sullivan.
Cuomo suggested that the payouts were against state law and demanded AIG now account for all executive pay, bonuses, and perks, or face legal action.
Meanwhile, the House oversight committee is turning up the heat on AIG as well.
"The taxpayers are now bearing the cost of the meltdown on Wall Street, and they deserve to know how their money is being spent," said Rep. Henry A. Waxman (D-Calif.), the chairman of the House Oversight and Government Reform Committee.
“We need to have transparency and oversight so that the U.S. taxpayers' interests are protected."
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