AIG Retreats and Hunts May Violate State Law

From Bloomberg:

The party is over,” Cuomo said today at a press conference on Wall Street in lower Manhattan. “No more hunting trips. No more luxury resorts. They are not going to have the party and leave the hangover for the taxpayers.” AIG has been castigated by officials since the New York- based insurer hosted a $440,000 conference at a California resort last month after agreeing to the federal bailout to avoid bankruptcy.  Cuomo claimed in his letter that the expenditures violated the state’s debtor-creditor law and demanded an accounting of AIG’s executive compensation and benefits since January 2007. He said the government’s financial rescue of AIG made the expenditures “even more irresponsible and damaging.” The U.S. government offered AIG an $85 billion loan last month as the company slipped toward insolvency. The company may access an additional $37.8 billion from the Federal Reserve Bank of New York to replenish liquidity. [full story ]



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