Archive for executive compensation

Citigroup Three Card Monty Policy on Executive Compensation

One would think that under the Obama administration of “greater transparency and accountability” that the 36% government owned Citigroup would wise up to the fact taxpayers are no longer tolerating huge compensations for, well absolutely nothing in return for shareholders but massive risk taking and losses.
Today, the NY Times reported that many of the bailed out banks who have received and continue to possess taxpayers’ money are looking for ways to divert previous “bonus” money to their base salaries.  No matter how they funnel money into the pockets of Wall St fat cats, they are simply raping their shareholders and taxing people who struggle to keep their jobs, their homes and pay their taxes.
Then why wouldn’t President Obama, Treasury Secretary Geithner, Senator Dodd and Congressperson Barney Frank do something about?
Even at the behest of taxpayers not to bailout failed businesses, the previous and current administration also failed to elect directors to the board of Citigroup!  How can that be?  36% shareholder and no representation on the Board of Directors.
Say what?
Doing a little research, you can easily detect the international political underpinnings to Citigroup.  Citigroup is made up of large concentration of foreign investors, mainly Middle East and Far East money.  A royal Saudi prince is the single largest shareholder as well as other various investment groups in the Middle East and Singapore.
So it is this writer’s opinion that because of the money ties to the Middle East, the current administration have no issue in bailing these people out with taxpayers’ money and at the same time, let them decide what to do with that money, even if it means it never makes it back to the taxpayers with interest.

One would think that under the Obama administration of “greater transparency and accountability” that the 36% government owned Citigroup’s Board and senior executives would wise up to the fact taxpayers are no longer tolerating huge compensations for, well absolutely nothing in return for shareholders but massive risk taking and losses.  Wrong!

Today the NY Times reported Citigroup as well as other banks that received and continue to possess taxpayers’ money are looking for ways to divert previous “bonus” money to their base salaries.  No matter how they funnel money into the pockets of Wall St fat cats, they are simply raping their shareholders and taxing people who struggle to keep their jobs, their homes and pay their taxes.

Then why wouldn’t President Obama, Treasury Secretary Geithner, Congressional leaders such as Dodd and Frank do something about it given the tough rhetoric during campaigning?

Even at the behest of taxpayers not to bailout failed businesses, the previous and current administration also failed to elect directors to the board of Citigroup!  How can that be?  36% shareholder and no representation on the Board of Directors of Citigroup?

Say what?

Doing a little research, you can easily detect the international political underpinnings to Citigroup.  Citigroup is made up of large concentration of foreign investors, mainly Middle East and Far East money.  A royal Saudi prince is the single largest shareholder as well as other various investment groups in the Middle East and Singapore.

So it is this writer’s opinion that because of the money ties to the Middle East, the current Obama administration has no qualms in bailing these foreign investors out of failed Citigroup with taxpayers’ money but simultaneously let Citigroup decide what to do with that money, even if it means taxpayers’ money never making it back to the taxpayers with interest.

How’s that for fiduciary responsibility post Madoff and Stanford?

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AIG Millions in Bonus-What about the hundreds of TARP and TALF Billions Going Out the Door?

Basic defintion before explanation of accusation:

Yield Curve – difference between interest rate of borrowed money versus the interest rate earned on the same money lend out.

Essentially, AIG was allowed to hide a hedge fund in a solid insurance business.

  1. AIG was a hybrid company hiding from different government agencies and was allowed to create exotic financial products went unregulated and therefore selected by economic terrorist to be used as a weapon of mass destruction.
  2. Enormous risks were allowed to built up hidden from the American public within its four walls which once triggered will allow vast wealth to be transferred from the American people to these yet to be identified terrorists.

Supporting sources of information:

  1. In 1987 Joseph Cassano after failing at the collapse of junk bond firm, Drexel Burnham Lampert in the US joins AIG London Office.
  2. According to the Ray De Lorenzi, American Association for Justice at Justice.org:  “…The Starr Foundation is one of the largest foundations in the United States. It is chaired by Hank Greenberg, CEO of AIG until 2005. AIG gave $23 million to U.S. Chamber through the Starr Foundation to push anti-regulatory efforts. The majority of this money, $15 million, was pledged in 2003 immediately after the passage of Sarbanes-Oxley to initiate a “capital campaign for educational and research programs.” Effectively, this money was to begin setting the groundwork to roll back post-Enron reforms…”
    The money was given from Starr to U.S. Chamber’s own foundation, which freely moves money to the corporate arm. Of U.S. Chamber’s 17 foundation grants, seven came from a variety of corporations totaling $2.2 million. The remaining 10 grants to U.S. Chamber, equaling $24.25 million, all came from Greenberg and the Starr Foundation.15
  3. Bernanke executing Federal Reserve Bank powers attempting to manipulate the yield curve keeping interest rate low to keep AIG from further hemmorage between 2006 and present.
  4. Democratic House Representative Alan Grayson of 8th District Florida notice that AIG may need $500 billion more if yield curve moves by 1%.  See video # 1 below.
  5. AIG 2008 10K filing with SEC reveals this in plain sight but Bernanke and Geithner makes no mention of it to the American Taxpayer who owns AIG despite receiving the recent stress test results.
  6. Ben Bernanke in Sep ’08 gives AIG $85 billion and takes effective ownership of AIG.
  7. AIG borrows another $37.8 billion.
  8. Bernanke and Paulson go before Congress and asks Congress for $700 billion and creates TARP which AIG takes $40 billion.
  9. Geithner arranging additional lending facilities to AIG of $30 billion.

AIG has $1.6 trillion to “unwind” according to AIG CEO Liddy.  But these are really paper losses.  It’s not like AIG sold oranges and the oranges are rotten have to be thrown away.  So where are all these hundreds of billions going?  Watch video #2 of Democratic House Representative Carolyn Malony from New York’s 14th District.  She says it’s going to foreign countries.  Now how are foreign governments “systemic risks” to the United States?  Sounds fishy?  You betcha’!!!  So why was the US Congress and the American Taxpayer rushed into this bailout strategy using “fear and scare” propaganda since Sep 2008?  Hmmm…

Video #1

Video #2

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Mastermind Behind AIG Financial Products Unit

Once again House congressional leaders are off target (both Democrats & Republicans).  Meet the mastermind behind the AIG unit that current AIG Chairman & CEO Liddy is getting bashed for.  Personally, I don’t see how a guy who worked along Milken of Drexel Burhnam Lambert who was arrested for fraud, be allowed to sell products and services without strong oversight and regulation.

Joseph J. Cassano and a over a couple of dozen staff from his AIG business division brought down the United States financial system and possibly the World.

BEHIND INSURER’S CRISIS, A BLIND EYE TO A WEB OF RISK

By GRETCHEN MORGENSON

The London Office

The insurance giant’s London unit was known as A.I.G. Financial Products, or A.I.G.F.P. It was run with almost complete autonomy, and with an iron hand, by Joseph J. Cassano, according to current and former A.I.G. employees.

A onetime executive with Drexel Burnham Lambert — the investment bank made famous in the 1980s by the junk bond king Michael R. Milken, who later pleaded guilty to six felony charges — Mr. Cassano helped start the London unit in 1987.

The unit became profitable enough that analysts considered Mr. Cassano a dark horse candidate to succeed Maurice R. Greenberg, the longtime chief executive who shaped A.I.G. in his own image until he was ousted amid an accounting scandal three years ago.

But last February, Mr. Cassano resigned after the London unit began bleeding money and auditors raised questions about how the unit valued its holdings. By Sept. 15, the unit’s troubles forced a major downgrade in A.I.G.’s debt rating, requiring the company to post roughly $15 billion in additional collateral — which then prompted the federal rescue.

Mr. Cassano, 53, lives in a handsome, three-story town house in the Knightsbridge neighborhood of London, just around the corner from Harrods department store on a quiet square with a private garden.

He did not respond to interview requests left at his home and with his lawyer. An A.I.G. spokesman also declined to comment.

See additional articles:  NY Times –

Behind Insurer’s Crisis, Blind Eye to a Web of Risk

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