AIG, the insurance company that was saved by an $85 billion federal bailout, will cooperate with Attorney General Andrew Cuomo's review of its finances. Additionally, the company will not make a $10 million severance payment to its outgoing CFO and it is canceling future junkets and perks, like its "Best Operator" conference in Las Vegas (cost: $750,000) and a Risk Management Conference at a Ritz Carlton (cost $500,000).
The NY Times reported that Cuomo explained, “The signal to corporate America is, it’s a different day... When you’re receiving taxpayer funds, the rules of the game change." Reuters asked Cuomo if other firms' executive compensation would be investigated, but he said, "Yes...[but] I can't say [which] at this time."
And federal investigators have issued subpoenas to many Lehman Brothers executive, including CEO Richard Fuld. CNBC reports, "It appears that federal prosecutors will focus on whether Lehman executives made false comments about the health of the firm ahead of the brokerage's recent bankruptcy."
