Check out the retirement agreement AIG signed with the former chief of AIGFP

[ProSense]

The Big Bucks

Let's go back to Joe Cassano, former chieftain of AIG Financial Products.

As noted earlier, there is a good deal of evidence that Cassano was trying to keep his division's book off-limits to AIG's in-house and outside accountants and auditors going back at least several years. Here is our first draft run-down of evidence that points to a systematic effort to keep AIGFP's books under seal and provide misleading or false information about the Financial Products' division's health.


He was forcibly retired in March of 2008, but kept on a $1 million per month retainer and allowed to keep living in the AIG-paid for apartment in London. It was only in September 2008 that Rep. Henry Waxman flipped out when he heard that the guy who blew up AIG and put taxpayers on the line for tens or hundreds of billions of dollars was still getting a $1 million a month retainer. That's when they killed the retainer too.

But take a look at the 'retirement' agreement Cassano signed with AIG back in March of last year.

Unfrigginbelievable!

On edit: Did Cassano And AIG Commit Fraud?

[tbyg52]

1. They have no clue how the peons (us) live, think, or feel

I think that's what blew up this bonus thing - they had no clue how the people would react, because it's bupkes to them, just a tiny fraction of the bailout, so who cares.

[ProSense]

2. After dumping on unions during the auto industry bailout debate

they should have foreseen this. Also, they should have expected the outrage at companies receiving hundreds of billions in bailout paying out millions in bonuses.

[tbyg52]

3. They *should* have, but they obviously didn't. They are clueless as to real life. nt

[sohndrsmith]

4. I'm very confused - and Google searches aren't helping (yet):

It appears that AIG-FP seemed to be largely independent from AIG... and exempt, as said here, to standard company oversight.

I'm confused by the following (and while listing my questions here, I'm not expecting someone else to do my homework--I'm still looking stuff up and remain perplexed, unfortunately. These are just things I'm wondering about:

- re the TARP bailout last fall: was that for AIG or AIG-FP (or AIG-FP under AIG)?
- did AIG-FP receive TARP $ directly or did AIG receive funds that were then doled to the FP division?
- didn't Paulson have a role in this? This discussion was active in September 2008 (or earlier) - so I don't understand why there is blame being directed at Obama and/or his administration....
- when did AIG/AIG-FP first receive bailout funds?
- is it because the FP division of AIG was so separate (and exempt from oversight) from the parent company - they were able to set their own rules regarding the use of bailout funds?
- isn't the time/date when the bailout funds were designated and formally transferred to AIG (and the rules set in place at that time) more significant than when the funds were disbursed as bonuses (or anything else)? Who was in charge when this money was allocated to AIG? What restrictions were applied?

It seems like AIG-FP is the catalyst for the larger downfall of AIG...

I remain confused and continue learning more about it...