INSURANCE GIANT AIG TO PAY $165 MILLION IN BONUSES -- The Catbird's Forum

[ Show ]

Support VoyForums

[ Shrink ]

VoyForums Announcement: Programming and providing support for this service has been a labor of love since 1997. We are one of the few services online who values our users' privacy, and have never sold your information. We have even fought hard to defend your privacy in legal cases; however, we've done it with almost no financial support -- paying out of pocket to continue providing the service. Due to the issues imposed on us by advertisers, we also stopped hosting most ads on the forums many years ago. We hope you appreciate our efforts.

Show your support by donating any amount. (Note: We are still technically a for-profit company, so your contribution is not tax-deductible.) PayPal Acct: Feedback:

Donate to VoyForums (PayPal):

[ Login ] [ Contact Forum Admin ] [ Main index ] [ Post a new message ] [ Search | Check update time | Archives: 1, 2, 3, 4, 5, 6, [7], 8, 9, 10 ]

[ Next Thread | Previous Thread | Next Message | Previous Message ]

Date Posted: 02:09:01 03/15/09 Sun
Author: Bobby N. Harmon
Subject:

INSURANCE GIANT AIG TO PAY $165 MILLION IN BONUSES

CV05-00030 - David C. Farmer vs Harmon - Exhibit: "Insurance giant AIG to pay $165 million in bonuses"

Sunday, March 15, 2009 4:45 AM

From: "bobby_n_harmon@yahoo.com"

To: "Barack H. Obama" , "Eric Holder" , "David Farmer" , "Steven Guttman" , "Carol K. Muranaka" , "David A. Ezra" , "Judith Neustadter" , "Kevin S.C. Chang" , "Barry M. Kurren" , "Securities & Exchange Commission Enforcement Division" , "U.S. Treasury Dept. Office of Inspector General" , "Office of Inspector General US Dept of Justice" , "Executive Office for U.S. Trustees" , "Bunny Greenhouse" , "Robert Faris" , "Anthony Romero" , "ACLU of Kentucky" , "Electronic Freedom Foundation" , "Public Citizen" , "Thomas Fitton" , "SEC Office of The Inspector General" Cc: "ACLU Hawaii" , "All Representatives" , "All Senators" , "Andrew Walden" , "Aon Insurance Managers" , "Arthur Rath" , "Benjamin Kudo" , "Bradley Tamm" , "Carl Morton" , "Charles Goodwin" , "Charles Hurd" , "Dave Shapiro" , "Dee Jay Mailer" , "Dorothy Sellers" , "Executive Office for U.S. Trustees" , "Hugh Jones" , "Insurance Division Fraud Branch" , "J C Shannon" , "James B Nicholson" , "James B. Farris" , "James Cribley" , "James Paul" , "James Wriston" , "Jeffrey Watanabe" , "Jim Dooley" , "Jo Ann Uchida" , "Joe Moore" , "John D. Finnegan" , "John Goemans" , "Judge Lloyd King" , "Judith Neustadter" , "Judson Witham" , "Ken Conklin" , "Kenneth Hipp" , "Lawrence Reifurth" , "Linda Lingle" , "Lyn Flanigan Anzai" , "Margery Bronster" , "Marsh Affinity Group" , "Michael N. Tanoue" , "Michelle Tucker" , "Nathan Aipa" , "Office of Inspector General Civil Rights Complaints" , "Office of the U.S. Trustee District of Hawaii" , "Paul Alston" , "Randall Roth" , "Rick Daysog" , "Robert Bruce Graham" , "Robin Campaniano" , "Samuel P. King" , "Susan Tius" , "William K Slate" , "Jim Terrack" , "Don Michak" , "Rocco Sansone" , "Ted Pettit" , "Mark Burch" , "Laura Thielen" , "Vaughn & Lynda Robinson" , "Rebecca Christie" , "Catbird" , "James Duca" , "Ian Lind" , "Roy F. Hughes" , "Malia Zimmerman" , "Elisa Yadao" , "Ray Fuqua" , "Jack Cashill" , "Bo Gritz" , "Marshall Chriswell" , "Tom Flocco" , "Michael Moore" , "Eric Shine" , "Laser Haas" , "Lucy Komisar" , "Democrats.com" , "Chalmers Johnson"

Insurance giant AIG to pay $165 million in bonuses
By MARTIN CRUTSINGER, AP Economics Writer � 30 mins ago

WASHINGTON � American International Group is giving its executives tens of millions of dollars in new bonuses even though it received a taxpayer bailout of more than $170 billion dollars.

AIG is paying out the executive bonuses to meet a Sunday deadline, but the troubled insurance giant has agreed to administration requests to restrain future payments.

The Treasury Department determined that the government did not have the legal authority to block the current payments by the company. AIG declared earlier this month that it had suffered a loss of $61.7 billion for the fourth quarter of last year, the largest corporate loss in history.

Treasury Secretary Timothy Geithner has asked that the company scale back future bonus payments where legally possible, an administration official said Saturday.

This official, who spoke on condition of anonymity because of the sensitivity of the issue, said that Geithner had called AIG Chairman Edward Liddy on Wednesday to demand that Liddy renegotiate AIG's current bonus structure.

Geithner termed the current bonus structure unacceptable in view of the billions of dollars of taxpayer support the company is receiving, this official said.

In a letter to Geithner dated Saturday, Liddy informed Treasury that outside lawyers had informed the company that AIG had contractual obligations to make the bonus payments and could face lawsuits if it did not do so.

Liddy said in his letter that "quite frankly, AIG's hands are tied" although he said that in light of the company's current situation he found it "distasteful and difficult" to recommend going forward with the payments.

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 last fall.

The large bulk of the payments at issue cover AIG Financial Products, the unit of the company that sold credit default swaps, the risky contracts that caused massive losses for the insurer.

A white paper prepared by the company says that AIG is contractually obligated to pay a total of about $165 million of previously awarded "retention pay" to employees in this unit by Sunday, March 15. The document says that another $55 million in retention pay has already been distributed to about 400 AIG Financial Products employees.

The company says in the paper it will work to reduce the amounts paid for 2009 and believes it can trim those payments by at least 30 percent.

Bonus programs at financial companies have come under harsh scrutiny after the government began loaning them billions of dollars to keep the institutions afloat. AIG is the largest recipient of government support in the current financial crisis.

AIG also pledged to Geithner that it would also restructure $9.6 million in bonuses scheduled to go a group that covers the top 50 executives. Liddy and six other executives have agreed to forgo bonuses.

The group of top executives getting bonuses will receive half of the $9.6 million now, with the average payment around $112,000.

This group will get another 25 percent on July 14 and the final 25 percent on September 15. But these payments will be contingent on the AIG board determining that the company is meeting the goals the government has set for dealing with the company's financial troubles.

The Obama administration has vowed to put in place reforms in the $700 billion financial rescue program in an effort to deal with growing public anger over how the program was operated during the Bush administration.

That anger has focused in part on payouts of millions of dollars in bonuses by financial firms getting taxpayer support.

In his letter, Liddy told Geithner, "We believe there will be considerably greater flexibility to reduce contractual payments in respect of 2009 and AIG intends to use its best efforts to do so."

But he also told Geithner that he felt it could be harmful to the company if the government continued to press for reductions in executive compensation

http://news.yahoo.com/s/ap/20090315/ap_on_bi_ge/aig_bonuses

# # #

References:

http://www.kycbs.net/AIG.htm
http://www.kycbs.net/Claims-Branch-Commissioners.htm
http://www.kycbs.net/CV05-00030-Witness-Campaniano-Robin.htm
http://www.kycbs.net/CV05-00030-Witness-Geithner-Timothy.htm
http://www.kycbs.net/CV05-00030-Witness-Paulson-Henry.htm

March 15, 2009

Dear President Obama, Attorney General Holder, Mr. Farmer; Mr. Guttman; Ms. Muranaka; Judge Ezra, Judge Chang, Judge Kurren, and All Concerned:

This references the subject Exhibit and related witness descriptions which provide more evidence of fraud, racketeering, bad faith, violation of anti-SLAPP statutes, and undisclosed conflicts of interest among various entities involved in this lawsuit. It is beyond all comprehension that, in view of all the facts that I have presented in this and hundreds of other Exhibits, Judge David Ezra and David C. Farmer can still claim that they were impartial and unbiased in this case.

In spite of all this factual evidence, however, I am again asking that we attempt to reach a global settlement of this matter through confidential negotiation or mediation rather than continuing these costly and seemingly-endless court proceedings.

If you still are NOT willing to attempt to negotiate or mediate a settlement, then I ask that you review this new Exhibit and advise me if you find it contains any so-called "protected subject matter", and whether or not you intend to OBJECT to my filing a Motion to reopen this case.

Mr. Farmer, I respectfully request your immediate reply. If I do not receive a response from you or your insurance carrier within 15 days, I will assume that you have found no "protected subject matter" in these updated pages, and that you will NOT file any objections to my Motion to reopen this case.

Very truly yours,

Bobby N. Harmon, CPCU, ARM

Related links:

http://www.kycbs.net/911-COVERUP.htm
http://www.kycbs.net/911-COVERUP-2.htm
http://www.kycbs.net/911-COVERUP-3.htm
http://www.kycbs.net/ACE.htm
http://www.kycbs.net/AIG.htm
http://www.kycbs.net/AIPAC.htm
http://www.kycbs.net/AlohaHarken.htm
http://www.kycbs.net/AOL.htm
http://www.kycbs.net/Apartheid-Hawaii.htm
http://www.kycbs.net/APCOA.htm
http://www.kycbs.net/AXA.htm
http://www.kycbs.net/Bailing-Out-Wall-Street.htm
http://www.kycbs.net/Bank-of-Hawaii.htm
http://www.kycbs.net/Bank-of-Honolulu.htm
http://www.kycbs.net/BCCI.htm
http://www.kycbs.net/BigFive.htm
http://www.kycbs.net/BLOWBACK.htm
http://www.kycbs.net/Broken-Trust-Book.htm
http://www.kycbs.net/ChubbGroup.htm
http://www.kycbs.net/CIA.htm
http://www.kycbs.net/CITIGROUP.htm
http://www.kycbs.net/Confessions.htm
http://www.kycbs.net/ConnecticutConnection.htm
http://www.kycbs.net/Developers.htm
http://www.kycbs.net/JUSTICE.htm
http://www.kycbs.net/Freedom-To-Sing.htm
http://www.kycbs.net/GilligansIsland.htm
http://www.kycbs.net/GoldmanSachs.htm
http://www.kycbs.net/IndonesianConnection.htm
http://www.kycbs.net/Insurance-Vampires.htm
http://www.kycbs.net/JUSTICE.htm
http://www.kycbs.net/Kissinger-of-Death.htm
http://www.kycbs.net/Lobbyists.htm
http://www.kycbs.net/Lost-Generations.htm
http://www.kycbs.net/MarshBirds.htm
http://www.kycbs.net/MaunawiliValley.htm
http://www.kycbs.net/NatureConservancy.htm
http://www.kycbs.net/Nature-Conservancy-Hawaii.htm
http://www.kycbs.net/NestEggs.htm
http://www.kycbs.net/No-Bailout-for-Billionaires.htm
http://www.kycbs.net/PALAU.htm
http://www.kycbs.net/PriceWaterhouse.htm
http://www.kycbs.net/PunaConnection.htm
http://www.kycbs.net/Punaluu.htm
http://www.kycbs.net/RICO-BH.htm
http://www.kycbs.net/SickBirds.htm
http://www.kycbs.net/SLAPP.htm
http://www.kycbs.net/TheChief.htm
http://www.kycbs.net/TheMeadows.htm
http://www.kycbs.net/Vampires.htm
http://www.kycbs.net/WallStreet.htm
http://www.kycbs.net/XL.htm
http://www.kycbs.net/YAKUZA.htm
http://www.kycbs.net/Zurich.htm

The New Catbird Seat
http://www.kycbs.net

[ Next Thread | Previous Thread | Next Message | Previous Message ]

Replies:

Re: INSURANCE GIANT AIG TO PAY $165 MILLION IN BONUSES -- Jud Witham, 22:27:10 03/16/09 Mon