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Paulson Can't Sack AIG Execs

By Lev Weinstein, Newser Staff

Posted Oct 10, 2008 6:58 PM CDT

(Newser) – Barack Obama is probably far from alone in wanting the heads of AIG execs who staged a $440,000 employee spa retreat just after the government's bailout of the company. The question is, does Treasury Secretary Henry Paulson have the authority to can the wayward execs? Nope, explains Juliet Lapidos in Slate. At least not technically.

The feds haven't actually handed over any cash—they've just given the assurance that they will if needed. "As long as the Treasury hasn't yet purchased the stock, it's not an owner with full authority over AIG's managers (and junkets)," writes Lapidos. That said, Paulson could probably use his clout to apply pressure.

The AIG logo is shown Wednesday, Sept. 17, 2008 in New York. (AP Photo/Mark Lennihan)

Treasury Secretary Henry Paulson speaks with reporters during a news conference at the Treasury Department Wednesday, Oct. 8, 2008 in Washington. (AP Photo/Evan Vucci)

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Feds Under Pressure to Broaden Bailout

Treasury already needs to ask Congress for next $350B installment

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After seeing some thawing in key credit markets, Treasury may expand program

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Nation needs explanation of how it will help

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Some checks from Congress, but Treasury will hold the keys

Hank and Ben: Time to Play Offense

Treasury and Fed need to start playing offense, says Leonhardt

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Paulson Can't Sack AIG Execs

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OTHER STORIES ON OUR RADAR

Henry Paulson • recession • AIG • Treasury Department • bailout • Treasury secretary • financial crisis • financial meltdown

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Feds Under Pressure to Broaden Bailout

Treasury already needs to ask Congress for next $350B installment

US May Buy Equity in More Firms

After seeing some thawing in key credit markets, Treasury may expand program

Bailout Won't Bail Out Bernanke

Nation needs explanation of how it will help

Paulson's Power Would Be Unprecedented

Some checks from Congress, but Treasury will hold the keys

Hank and Ben: Time to Play Offense

Treasury and Fed need to start playing offense, says Leonhardt

About Us

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Newser By Users

Community

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