New York Attorney General Andrew Cuomo rocks. He's always stood for the right side of things, and now has managed to unearth (via subpoena) that 73 AIG people stand to get at least $1 million.
Is it fraud if a company demands a bailout and then pays bonuses to boneheads? Does an employee have to actually *earn* a bonus these days?
I would also like for Mr. Cuomo to check into Countrywide. I find it galling that the people who largely got us into this mess are now making money hand over fist from it. Yes, they're helping some distressed homeowners, but let's tally up the "we screwed you" v. the "we helped you" list and see where things land. My guess is List One is miles long. Since New York's comptroller has filed a suit against Countrywide, it might not be out of Cuomo's jurisdiction.
Source:
http://news.yahoo.com/s/ap/aig_cuomo
http://www.nytimes.com/2009/03/04/business/04penny.html
2 comments:
What are your thoughts on the argument that the AIG bonuses were retention bonuses contractually promised, and the fear that lawsuits by people not getting them would cost more than the initial payout? Still sucks that they are granted, but I'd think that kind of ties everyone's hands in the situation, right?
Great point, and when I wrote that, I didn't realize it was about retention. Now I do, and I think it just points up that there's a huge disconnect between corporata and public policy. Lack of retention bonuses means that Wall Street will be cherry-picked for all the best and brightest. The way it was presented is problematic at best and underhanded at worst. And the idea that they could be taxed at 90% is legally suspect and stinks of revenge.
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