New York Attorney General investigates spending
New York Attorney General Andrew Cuomo is investigating "unwarranted and outrageous expenditures" at AIG.
'They are not going to have the party and leave the hangover for the taxpayers,' New York Attorney General Andrew Cuomo said.
In a letter to AIG's board of directors, Cuomo demanded the company stop "extravagant" expenditures and recover millions of dollars in unreasonable payments. He cited a $5m bonus and a $15m golden parachute former AIG chief executive Martin Sullivan was awarded in March. Cuomo also said the company spent hundreds of thousands of dollars on "luxurious retreats" for executives, including an overseas hunting party and a golf outing. Reports yesterday said a handful of top executives from AIG spent thousands of dollars during a recent English hunting trip.
"This was an annual event for customers of the AIG property casualty insurance companies in the UK and Europe, and planned months before the Federal Reserve Bank of New York's loan to AIG," responded AIF spokesperson Peter Tulupman.
"The party is over," Cuomo said. "No more hunting trips. No more luxury resorts. They are not going to have the party and leave the hangover for the taxpayers."
Cuomo also noted in his letter that an unnamed executive, "who was largely responsible for AIG's collapse" and was fired in February, was allowed to keep $34m in bonuses. Cuomo said the executive also apparently continued to receive a $1m a month from AIG until recently.