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The AIG Blackmail note

March 16th, 2009

Holy cow – what it means to be too big to fail.


AIG Risk & Bankruptcy Report

2. politics , ,

  1. aha
    March 18th, 2009 at 16:24 | #1

    Check this out:

    http://www.scribd.com/doc/13395005/AIGs-Employe

    …the Covered Person will forfeit the right to such Guaranteed Retention Award in the following circumstances:

    3.04 (b) the Covered Person's employment (or, as applicable, consultancy) is terminated by AIG-FP for cause (“cause” means conduct involving intentional wrongdoing, fraud, dishonesty, gross negligence, material breach of the AIG Code of Conduct or other policies of AIG-FP or AIG, or conviction of or entry of a plea of guility or no contest to a criminal offense); or

    So, AIG's management should have dismissed all of the Covered Persons at AIG-FP for “cause” since they exhibited gross negligence when they failed to hedge wrong-way risk. These bonuses should never have been paid out.

  2. aha
    March 18th, 2009 at 22:24 | #2

    Check this out:

    http://www.scribd.com/doc/1339

    …the Covered Person will forfeit the right to such Guaranteed Retention Award in the following circumstances:

    3.04 (b) the Covered Person's employment (or, as applicable, consultancy) is terminated by AIG-FP for cause (“cause” means conduct involving intentional wrongdoing, fraud, dishonesty, gross negligence, material breach of the AIG Code of Conduct or other policies of AIG-FP or AIG, or conviction of or entry of a plea of guility or no contest to a criminal offense); or

    So, AIG's management should have dismissed all of the Covered Persons at AIG-FP for “cause” since they exhibited gross negligence when they failed to hedge wrong-way risk. These bonuses should never have been paid out.

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