Comments on: AIG Asset Sales Going Slowly http://www.nakedcapitalism.com/2008/10/aig-asset-sales-going-slowly.html Mon, 23 Nov 2009 11:57:17 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2008/10/aig-asset-sales-going-slowly.html#comment-22160 Anonymous Sat, 18 Oct 2008 03:11:00 +0000 http://www.nakedcapitalism.com/2008/10/aig-asset-sales-going-slowly/#comment-22160 Priceless documentation of who's being bailed out from <br/>Lahde Quits Hedge Funds, Thanks `Idiots' for Success (Update1)<br/><br/>By Katherine Burton<br/><br/>Oct. 17 (Bloomberg) -- Andrew Lahde, the hedge-fund manager who quit after posting an 870 percent gain last year, ...in which he said he had come to hate the hedge-fund business. ``The low-hanging fruit, i.e. idiots whose parents paid for prep school, Yale and then the Harvard MBA, was there for the taking. These people who were (often) truly not worthy of the education they received (or supposedly received) rose to the top of companies such as AIG, Bear Stearns and Lehman Brothers and all levels of our government.<br/><br/>``All of this behavior supporting the Aristocracy, only ended up making it easier for me to find people stupid enough to take the other sides of my trades. God Bless America.''<br/><br/><br/>http://www.bloomberg.com/apps/news?pid=20601087&sid=aVUE96d.HKyw&refer=home Priceless documentation of who's being bailed out from
Lahde Quits Hedge Funds, Thanks `Idiots' for Success (Update1)

By Katherine Burton

Oct. 17 (Bloomberg) — Andrew Lahde, the hedge-fund manager who quit after posting an 870 percent gain last year, …in which he said he had come to hate the hedge-fund business. “The low-hanging fruit, i.e. idiots whose parents paid for prep school, Yale and then the Harvard MBA, was there for the taking. These people who were (often) truly not worthy of the education they received (or supposedly received) rose to the top of companies such as AIG, Bear Stearns and Lehman Brothers and all levels of our government.

“All of this behavior supporting the Aristocracy, only ended up making it easier for me to find people stupid enough to take the other sides of my trades. God Bless America.''

http://www.bloomberg.com/apps/news?pid=20601087&sid=aVUE96d.HKyw&refer=home

]]> By: Chris http://www.nakedcapitalism.com/2008/10/aig-asset-sales-going-slowly.html#comment-22083 Chris Fri, 17 Oct 2008 15:15:00 +0000 http://www.nakedcapitalism.com/2008/10/aig-asset-sales-going-slowly/#comment-22083 The readers of this blog are fluent in the language that brought this mess on. As an urban-affairs journalist, I did my best to achieve a first-grade level of fluency. But now, like Andrei Codrescu, I get my best news from poets -- <a HREF="http://tinyurl.com/3vy6ue" REL="nofollow"> especially those who chronicled this meltdown's 20th-century prototype</a>. The readers of this blog are fluent in the language that brought this mess on. As an urban-affairs journalist, I did my best to achieve a first-grade level of fluency. But now, like Andrei Codrescu, I get my best news from poets — especially those who chronicled this meltdown’s 20th-century prototype.

]]> By: fresno dan http://www.nakedcapitalism.com/2008/10/aig-asset-sales-going-slowly.html#comment-22052 fresno dan Fri, 17 Oct 2008 11:40:00 +0000 http://www.nakedcapitalism.com/2008/10/aig-asset-sales-going-slowly/#comment-22052 "Warning: we have had various anonymous readers point to sites that offer market timing advice"<br/><br/>Yves: Thanks for the warning - I just thought that guy who thinks this is the bottom is metally deranged. “Warning: we have had various anonymous readers point to sites that offer market timing advice”

Yves: Thanks for the warning – I just thought that guy who thinks this is the bottom is metally deranged.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/aig-asset-sales-going-slowly.html#comment-22026 Anonymous Fri, 17 Oct 2008 06:22:00 +0000 http://www.nakedcapitalism.com/2008/10/aig-asset-sales-going-slowly/#comment-22026 Anon of 10:34 -- This is correct only if there is residual value for the equity holders. To the extent that there is no residual value and the government is merely gaining priority against AIG's unsecured creditors with the mounting accrual of interest, the government will be in a net gain position. Anon of 10:34 — This is correct only if there is residual value for the equity holders. To the extent that there is no residual value and the government is merely gaining priority against AIG’s unsecured creditors with the mounting accrual of interest, the government will be in a net gain position.

]]> By: Steve http://www.nakedcapitalism.com/2008/10/aig-asset-sales-going-slowly.html#comment-22015 Steve Fri, 17 Oct 2008 04:46:00 +0000 http://www.nakedcapitalism.com/2008/10/aig-asset-sales-going-slowly/#comment-22015 The stories of looting by AIG incumbents just shows that half-measures at nationalization are half-assed. Replace the board. Impose austerity. Break the failed wreck up and stop pretending that the private sector value-added is something more than a bunch of MBA jerks playing at being landed nobility. The stories of looting by AIG incumbents just shows that half-measures at nationalization are half-assed. Replace the board. Impose austerity. Break the failed wreck up and stop pretending that the private sector value-added is something more than a bunch of MBA jerks playing at being landed nobility.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/aig-asset-sales-going-slowly.html#comment-22002 Anonymous Fri, 17 Oct 2008 03:43:00 +0000 http://www.nakedcapitalism.com/2008/10/aig-asset-sales-going-slowly/#comment-22002 - American International Group Inc., following criticism by New York Attorney General Andrew Cuomo, won't honor a $10 million severance agreement with outgoing Chief Financial Officer Steven Bensinger, Cuomo said.<br/><br/>Canceling Conferences<br/><br/>``We're reviewing everything and making an effort to identify activities that aren't critical and reviewing executive compensation,'' said AIG spokesman Nicholas Ashooh, declining to comment further on Bensinger.<br/><br/>The company will be canceling more than 160 conferences and events, some exceeding more than $750,000 per event, which Cuomo's statement will result in a savings of more than $8 million.<br/><br/>The company also will institute new expense management controls, Cuomo said, to prevent any other unwarranted expenditures.<br/><br/>David Herzog, 48, who was AIG's comptroller for three years, was promoted to replace Bensinger, the company announced today.<br/><br/>The company has been castigated by officials since it hosted a $440,000 conference at a California resort last month after agreeing to the federal bailout to avoid bankruptcy.<br/><br/>Cuomo, in a letter yesterday to AIG's board of directors, demanded the company stop ``extravagant'' expenditures and recover millions of dollars in unreasonable payments, or face legal action.<br/><br/>`Golden Parachute'<br/><br/>Cuomo cited a $5 million bonus and $15 million ``golden parachute'' AIG awarded its chief executive officer in March. Sullivan was AIG's CEO at the time.<br/><br/>The attorney general also noted in his letter that an unnamed top-ranking executive, ``who was largely responsible for AIG's collapse'' and was fired in February, was allowed to keep $34 million in bonuses. Cuomo said the executive also apparently continued to receive a $1 million a month from the company until recently.<br/><br/>http://www.bloomberg.com/apps/news?pid=20601087&sid=azCc9UmFkByE&refer=home - American International Group Inc., following criticism by New York Attorney General Andrew Cuomo, won't honor a $10 million severance agreement with outgoing Chief Financial Officer Steven Bensinger, Cuomo said.

Canceling Conferences

“We're reviewing everything and making an effort to identify activities that aren't critical and reviewing executive compensation,'' said AIG spokesman Nicholas Ashooh, declining to comment further on Bensinger.

The company will be canceling more than 160 conferences and events, some exceeding more than $750,000 per event, which Cuomo's statement will result in a savings of more than $8 million.

The company also will institute new expense management controls, Cuomo said, to prevent any other unwarranted expenditures.

David Herzog, 48, who was AIG's comptroller for three years, was promoted to replace Bensinger, the company announced today.

The company has been castigated by officials since it hosted a $440,000 conference at a California resort last month after agreeing to the federal bailout to avoid bankruptcy.

Cuomo, in a letter yesterday to AIG's board of directors, demanded the company stop “extravagant'' expenditures and recover millions of dollars in unreasonable payments, or face legal action.

`Golden Parachute'

Cuomo cited a $5 million bonus and $15 million “golden parachute'' AIG awarded its chief executive officer in March. Sullivan was AIG's CEO at the time.

The attorney general also noted in his letter that an unnamed top-ranking executive, “who was largely responsible for AIG's collapse'' and was fired in February, was allowed to keep $34 million in bonuses. Cuomo said the executive also apparently continued to receive a $1 million a month from the company until recently.

http://www.bloomberg.com/apps/news?pid=20601087&sid=azCc9UmFkByE&refer=home

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/aig-asset-sales-going-slowly.html#comment-22001 Anonymous Fri, 17 Oct 2008 03:39:00 +0000 http://www.nakedcapitalism.com/2008/10/aig-asset-sales-going-slowly/#comment-22001 In a letter released Friday, House Financial Services Committee chairman Barney Frank told Treasury Secretary Henry Paulson and Federal Reserve chairman Ben Bernanke the executives responsible for the gathering should "personally reimburse the government," and requested increased oversight of the company.<br/><br/>Cuomo said in his letter the expenditures violated the state's debtor-creditor law and demanded an accounting of AIG's executive compensation and benefits since January 2007. He said the government's financial rescue of AIG made the expenditures "even more irresponsible." In a letter released Friday, House Financial Services Committee chairman Barney Frank told Treasury Secretary Henry Paulson and Federal Reserve chairman Ben Bernanke the executives responsible for the gathering should “personally reimburse the government,” and requested increased oversight of the company.

Cuomo said in his letter the expenditures violated the state’s debtor-creditor law and demanded an accounting of AIG’s executive compensation and benefits since January 2007. He said the government’s financial rescue of AIG made the expenditures “even more irresponsible.”

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/aig-asset-sales-going-slowly.html#comment-22000 Anonymous Fri, 17 Oct 2008 03:34:00 +0000 http://www.nakedcapitalism.com/2008/10/aig-asset-sales-going-slowly/#comment-22000 In interviews with undercover reporters, the AIG honchos said they were aware that the markets were crashing back in New York - but were more interested in bagging birds.<br/><br/>"The recession will go on until about 2011 - but the shooting was great today and we are relaxing fine," AIG honcho Sebastian Preil was quoted as saying.<br/><br/>Preil wasn't the least bit embarrassed that AIG, which got its first $85 billion bailout from the feds last month, needed taxpayer money to stay in business. The hunting trip came the week AIG got a second loan of $37.5 billion.<br/><br/>"We should be on an even keel in two years," he reportedly said. In interviews with undercover reporters, the AIG honchos said they were aware that the markets were crashing back in New York – but were more interested in bagging birds.

“The recession will go on until about 2011 – but the shooting was great today and we are relaxing fine,” AIG honcho Sebastian Preil was quoted as saying.

Preil wasn’t the least bit embarrassed that AIG, which got its first $85 billion bailout from the feds last month, needed taxpayer money to stay in business. The hunting trip came the week AIG got a second loan of $37.5 billion.

“We should be on an even keel in two years,” he reportedly said.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/aig-asset-sales-going-slowly.html#comment-21999 Anonymous Fri, 17 Oct 2008 03:20:00 +0000 http://www.nakedcapitalism.com/2008/10/aig-asset-sales-going-slowly/#comment-21999 Undercover UK Tabloid Crashes AIG's Latest Boondoggle: $86K Bird Hunt At Fancy English Manor!<br/><br/>...AIG officials declined to say which AIG executives attended the trip, which reports have said racked up an $86,000 tab. News of the hunting trip surfaced just days after AIG received an additional $37.8 billion loan from the Federal Reserve, on top of a previous $85 billion emergency loan granted last month. Undercover UK Tabloid Crashes AIG’s Latest Boondoggle: $86K Bird Hunt At Fancy English Manor!

…AIG officials declined to say which AIG executives attended the trip, which reports have said racked up an $86,000 tab. News of the hunting trip surfaced just days after AIG received an additional $37.8 billion loan from the Federal Reserve, on top of a previous $85 billion emergency loan granted last month.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/aig-asset-sales-going-slowly.html#comment-21997 Anonymous Fri, 17 Oct 2008 03:12:00 +0000 http://www.nakedcapitalism.com/2008/10/aig-asset-sales-going-slowly/#comment-21997 AIG Still Paying For Luxury Suite at MSG<br/><br/>While Tulupman would not confirm how much AIG is paying for the MSG suite, a year-long contract for a "Club Suite" ranges from $225,000 to $500,000. Although AIG is stuck with paying for the suite, Tulupman said it will no longer be used by the company.<br/><br/>http://abcnews.go.com/Blotter/WallStreet/story?id=6052261&page=1 AIG Still Paying For Luxury Suite at MSG

While Tulupman would not confirm how much AIG is paying for the MSG suite, a year-long contract for a "Club Suite" ranges from $225,000 to $500,000. Although AIG is stuck with paying for the suite, Tulupman said it will no longer be used by the company.

http://abcnews.go.com/Blotter/WallStreet/story?id=6052261&page=1

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