Just reported in the Washington Post, “As American International Group chief executive Edward M. Liddy returns to Washington to face Congress today, new details are emerging about how long federal officials were aware of the company’s recent bonus payments to its executives and how inflammatory the payments could be.”
The lead goes on to say that, “Documents show that senior officials at the Federal Reserve Bank of New York received details about the bonuses more than five months before the firestorm erupted and were deeply engaged with AIG as well as outside lawyers, auditors and public relations firms about the potential controversy. But the New York Fed did not raise the alarm with the Obama administration until the end of February.” Washington Post
- Can someone tell me please how it happens that no one put their foot on the brakes?
- Where were the written policies that put a check on the bonuses?
In case you missed the story, AIG did hire a crisis manager last month. CBS News, But the article said, “Insiders say even the most brilliantly choreographed public relations strategy won’t make a dent in public perceptions of a company like AIG unless it reforms itself – and maybe not even then.”
Getting back to bonuses — usually there are terms and conditions with so many “ifs” regarding corporate stability, that the bonuses get tied up for months. So what fell through the cracks?
Copyright 2009 Rita Watson