AIG backlash heats up
The heat continues to increase on insurance giant AIG, which got $182 billion in taxpayer bailouts yet gave out $165 million in bonuses. New York Senator Chuck Schumer says President Obama’s pay czar should be given the power to recover the “outrageous” bonuses. Law Professor Cornelius Hurley, director of the Morin Center for Banking and Financial Law, says taxpayers also must be concerned about AIG’s ability to unravel and the complex debt obligations that led to the financial meltdown.
“Refusing to pay back ’08 bonuses, and maneuvering for ’09 payouts, gives us little confidence that their efforts at unwinding the complex products they created will be done in the best interests of the company’s taxpayer-shareholders. Why should we be trusting the same AIG folks that created these products to drive the hard bargain with counterparties to AIG? Where is Elizabeth Warren and her TARP oversight white hat when needed?”
Contact Cornelius Hurley, 617-353-5427, email@example.com