NYAG Cuomo warns nine banks about bonus payments

[Snazzy]

Source: Reuters

NYAG Cuomo warns nine banks about bonus payments
Wed Oct 29, 2008 5:10pm EDT
By Grant McCool

NEW YORK (Reuters) - New York Attorney General Andrew Cuomo, who negotiated executive payment clawbacks by American International Group Inc (AIG.N: Quote, Profile, Research, Stock Buzz) as it received a taxpayer bailout, warned nine banks receiving government money on Wednesday that using the funds for bonus payments may be illegal under state law.

In a letter sent to Bank of America Corp, Bank of New York Mellon Corp, Citigroup Inc, Goldman Sachs Group Inc, JPMorgan Chase & Co, Merrill Lynch & Co Inc, Morgan Stanley, State Street Corp, and Wells Fargo & Co, he also asked their boards to explain what mechanisms they have put in place to protect taxpayer money.

"Specifically, corporate expenditures and payments, made in the absence of fair consideration of undercapitalized firms, may well violate NY Debtor and Creditor Law 274, which deems such payments illegal fraudulent conveyances," Cuomo's letter said.

...

The letter said that "obviously, we will have grave concerns if your expected bonus pool has increased in any way as a result of your receipt or expected receipt of taxpayer funds from the Troubled Asset Relief Program."


Read more: http://www.reuters.com/article/ousiv/idUSTRE49S85720081029

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At least someone gives a shit about the ongoing looting of our tax moola, unlike say the Tres. Dept.

[Myrina]

1. What is a 'clawback' ?

:shrug:

[Snazzy]

2. kind of colorful word for financial article

Grabbing stockholder's (and now taxpayer) money back from massive distribution to cronies in various swindles.

For example, AIG clawed-back the $ million a month that Joseph Cassano was getting paid for his no-show consulting gig. They did that only when Waxman held hearing and Coumo made a round of legal threats. Cassano in my view one of the lead architects of the general meltdown and certainly led AIG's efforts to become an insurance version of Enron.

http://www.propublica.org/article/ny-ag-threatens-aig-over-exec-payments-and-retreats-1015/

[bluesmail]

3. Is Ken Lay deceased? Is Enron really

'bankrupt'? Stay tuned.