Tags: AIG, explanations, it's science, Neil Barofsky, NEIL BAROFSKY HATES MOVIES WITH HAPPY ENDINGS THAT'S WHY HE DID THIS, reports, responses, SIGTARP, the White House
Earlier this week, Troubled Asset Relief Program’s inspector general Neil Barofsky issued a report noting that the Treasury’s estimate that it will lose $5 billion on its AIG TARP investment “represents a dramatic shift from the $45 billion loss that Treasury had projected in its AIG investment just six months earlier.” Barofsky went on to say that “while AIG’s fortune may have indeed improved during the course of those six months, there is a serious question over how much of this decrease comes from a change in Treasury’s methodology for calculating the loss as opposed to AIG’s improved prospects.” Some people did not like that. This morning, the White House took it its blog to respond. These are its best moments, starting with the first line:
* Some people just don’t like movies with happy endings.
* How else to explain this week’s report by the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP)? Read more »
Tags: 70 Pine Street, AIG, AIGFP, Ed Liddy, Goldman Sachs, memories, parties
Say what you will about 70 Pine Street– the headquarters of AIG, the most majestic insurance company/hedge fund in all the land, but we’ve all had some good times there, whether directly or as the indirect beneficiaries of stuff that went down. It’s incredibly emotional even just to think about the fact that the company is moving out of the building but in times of great sadness like these, we must put on a brave face, celebrate, and pay homage. To that end, management is throwing a little party next week to mark the end of the era. Refreshments– presumably alcoholic in nature, as is fitting– will be served and while the invite doesn’t say, we’re just going to assume that reenactments of the “best of” moments will take place. Such as:
- The day Hank Greenberg signed off on AIG-FP and Joe Casanno saying by calling him “one of the greats”
- The earnings conference call in May of 2008 when they announced they were raising capital AND raising their dividend
- The time Goldman Sachs sent two dudes over in the middle of the night to shove Ed Liddy’s head in a toilet while the following dialogue took place:
GS Thug: Where’s the money, Liddy? Where’s the fucking money, shithead?
Liddy: It’s uh… uh… it’s down there somewhere, let me take another look. Read more »
Tags: AIG, AIGFP, Bailouts, Joe Cassano, outrageous claims like he invented the question mark, tremendous statements, would be heroes
“[Cassano] even went so far as to claim that he might have been able to help minimize the government’s bailout of AIG. Part of the money spent to save the company was funneled to more than a dozen banks that had taken out insurance contracts against AIG defaulting on its debt. “I think I would have negotiated a much better deal for taxpayers,” said Cassano, who left the company in March 2008 after the insurer reported more than $11 billion in losses within his division for the fourth quarter of 2007.” [CNN Money]
Tags: AIG, AIGFP, even though AIG management ultimately rejected my proposal, FCIC, I did it because it was the right thing to do, Joe Cassano
Just trying to do the right thing.
But they said no, Joe, no. You, our adorable little Jon Lovitz lookalike, deserve this. We won’t have it any other way. You have done so much for this company! Letting you walk away without $315 million would be practically criminal. Would you like that in unmarked, non-consecutive twenties? Singles? Briefcase or g-string?
Joe Cassano’s Testimony
In November 2007, it became apparent that AIG-FP’s accounting losses would be substantial and would require a change to our compensation structure to ensure that employees stayed with the company to help it address the issues surrounding the AIG-FP portfolio, but also would not be immune to AIG-FP’s losses if they were actually realized. I had several discussions with my superiors at AIG about this change, emphasizing the need to recognize the accounting losses while also noting the importance of keeping our employees together during this critical time. For that reason, I suggested that AIG-FP adopt a special-incentive plan (”SIP”), which would place any compensation in excess of a set amount in a special deferred-compensation account. The funds in that account would remain subject to AIG-FP’s business performance and the risk of realization of the accounting losses.
Read more »
Tags: AIG, HOLY SHIT, Robert Benmosche, suck it Liddy, the fact that he works remotely from his vineyard may have helped, unbelievable
The little CEO that could.
They said it couldn’t be done. They laughed when people suggested otherwise. They had good money riding on it, fact. They were wrong. And so today, we need to give a little credit where a little credit is due. A lot, in fact. Today, we need to give it up for AIG. Specifically, to the man at the top. Bobby “I’m gonna do unspeakable things to Andrew Cuomo” Benmosche, who’s achieved something so huge, it must be noted, and perhaps even toasted later today when his employees cut out early for 2for1′s. Have the taxpayers gotten their money back? No. Think bigger and wayyy more momentous. Read more »