New York Attorney General Andrew Cuomo has scored wins against rogue used car dealers, shady mortgage brokers and Wall Street firms selling derivatives, but when it comes to dealing with AIG, Cuomo’s bark may be worse than his bite.
According to a special inspector general’s report on Uncle Sam’s bailout program, Cuomo’s vow to “name and shame” executives at government-owned American International Group who don’t return $45 million in disputed bonuses has resulted in less than half being given back.
The report shows that just $19 million has been returned. The affected AIG executives have until year-end to make good on their promise to give back the bonuses.
New York state’s attorney general drew criticism in March when he said he would divulge the names of the executives. Some accused Cuomo of blackmail.
The attorney general’s office didn’t respond to questions about whether he would carry out his threat.
AIG drew public ire earlier this year when it was disclosed that the company, after receiving more than $180 billion in government aid, paid out $165 million in bonuses to employees.
The Wall Street Journal reported that AIG has conducted an investigation into recent actions by its general counsel, Anastasia Kelly, who had allgedly informed executives how they could continue to collect severance benefits. Kelly and four other executives told the insurer this month that they were prepared to resign over federal pay curbs, the report said.
The company has refused to disclose the results of its internal investigation into whether the bonuses were proper.