(h/t to TPM)Here's that agreement that Joseph Cassano signed with AIG in March 2008, which gave him a $1 million a month consulting contract, after he had run the company into the ground.
More problems for AIG CEO: Congress releases AIG bonus contracts. Click here. But, here is some shocking news about the government regulators: Investigation reveals that government regulators ignored 'numerous weaknesses' in banks' risk management plans. The Government Accountability Office or GAO's report concluded that "regulators had identified numerous weaknesses in the institutions' risk management systems before the financial crisis" -- but did nothing "until the crisis occurred because the institutions had strong financial positions and senior management had presented the regulators with plans for change."
Finally,
Republican Sen. Chuck Grassley (IA) has asked the Treasury Department inspector general (IG) to open an inquiry into senior officials' knowledge of AIG's plans to pay out $450 million in bonuses to employees of its disgraced Financial Products unit.
And it is interesting that Grassley is now targeting Geithner as the blame, but won't discuss that fact the Senate removed bonus restriction in the economic bill.
And this from Huffington Post:
As the New York Times reported at the time that TARP was being crafted, "Congress and the administration remained at odds over the demands of some lawmakers, including limits on the pay of top executives whose firms seek help."Former Treasury Secretary Hank Paulson said that while he was upset with the levels of salary afforded to top executives, any cap on such would dissuade companies from participating in the TARP.
"If we design it so it's punitive and so institutions aren't going to participate, this won't work the way we need it to work," he told Fox News Sunday on September 21.
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