Cuomo Expands AIG Bonus Probe With Subpoena of Data on Swaps


Karen Freifeld
Bloomberg
March 27, 2009

New York Attorney General Andrew Cuomo, building on his investigation of American International Group Inc.’s bonuses, subpoenaed data on credit derivatives to determine whether Goldman Sachs Group Inc., Deutsche Bank AG and other banks improperly received taxpayer funds.

[efoods]“Our investigation into corporate bonuses has led us to an investigation of the credit-default swap contracts at AIG,” Cuomo said yesterday in a statement. “CDS contracts were at the heart of AIG’s meltdown. The question is whether the contracts are being wound down properly and efficiently or whether they have become a vehicle for funneling billions in taxpayer dollars to capitalize banks all over the world.”

AIG’s Financial Products, the unit that sold credit-default swaps blamed for crippling the company, has been under fire after paying out $165 million in retention bonuses this month while its parent company was taking taxpayer bailouts valued at $182.5 billion.

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