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NY Probes AIG's Golden Parachutes, Spending
Attorney general charges insurer with 'unwarranted and outrageous expenditures'
By Ambreen Ali
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Posted Oct 15, 08 3:56 PM CDT
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(Newser)
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New York's attorney general today called on AIG's directors to recover millions in “outrageous expenditures,” including golden parachutes to executives even as it neared the collapse that brought an $85 billion federal intervention, the Wall Street Journal reports. Andrew Cuomo is investigating whether the insurer broke state law by making such decisions without consulting its creditor—the state, in this case.
AIG “had a party and the taxpayers have the hangover,” Cuomo said, adding that “even after the taxpayer-funded bailout of AIG, the company paid hundreds of thousands of dollars for luxurious retreats for its executives, including an overseas hunting party and a golf outing.”