Friday, August 21, 2009

And, In The "Fuck You Very Much" Department ...

If Digby had her way, she would call it, simply, hubris.

New Chief at A.I.G. to Be Paid at Least $7 Million a Year

How much will it cost the American International Group to keep its chief executive to help stabilize the troubled insurer? At least $7 million a year.

A.I.G. disclosed Monday in a regulatory filing that it would pay Robert H. Benmosche, 65, the former head of MetLife, $3 million a year in cash and $4 million in stock.

Mr. Benmosche will also be eligible for up to $3.5 million in stock as part of an incentive plan, A.I.G. said in a regulatory filing.


A.I.G. said in its letter formally offering Mr. Benmosche the job that his compensation would be subject to “clawbacks” by Mr. Feinberg’s office, meaning that at least some of the money could be recovered if the bonuses were paid based on financially misleading data. Mr. Benmosche will also not receive a severance package if he is dismissed from the company, according to the regulatory filing.
Oh, "clawbacks" ... That may be too harsh, right?

I mean, AIG, and "financially misleading data ...

I'm sure we have absolute no worries there ...

And, there is this gem;
This month, A.I.G. reported its first quarterly profit since 2007, though Mr. Liddy warned that the insurance businesses “remain challenged.”

AIG has paid back all the money, the billions-upon-billions, given to them by the U.S. Government, and still made a profit?

How come that wasn't in screaming headlines?

Yeah, the insurance business may remained "challenged", but with the Obama Financial Team (Ruben and, of course Secretary of the Treasury Tim "What's that, Lassie? (Woof, woof!!) Timmy Geithner's in the well?!!" Geithner), at the helm, there's no worry.

A bailout, simply, is just around the corner.

And, when we want to look into the "Clueless Corner", Yves Smith, over on Naked Capitalism, had this;
Tim Duy pointed out this priceless remark from AIG's new CEO, Robert Benmosch:

Benmosche told employees that he “had the luxury to say to the government, I’m not going to rush to do this. I’m appalled at how much pressure has been put on all of you to just sell it no matter what, because the Fed wants out, or the Treasury wants out. If they want out in a hurry, they shouldn’t have come in in the first place.”
This ought to be rather interesting to watch.

That is, how soon into the "Benmosch Dynasty", does AIG come whimpering to Washington again, begging for money.

Bonus AIG Riffs

Dennis Overbye: They Tried to Outsmart Wall Street

Larisa Alexandrovna: AIG = BCCI

Eliot Spitzer: The Real AIG Scandal - It's not the bonuses. It's that AIG's counterparties are getting paid back in full

Paul Krugman: AIG

Michael Lewis: The Man Who Crashed the World

Zachary Roth and Ben Buchwalter: The Rise And Fall Of AIG's Financial Products Unit

Breaking! ... Obama Takes Action, Siezes AIG's March Madness Office Pools and Brackets

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