Damaged insurance company AIG is in more of jam than first understood. The insurer has run through its $85-billion loan from the Federal Reserve; now it needs $37.8 billion more, and the Fed has granted the request. Does mean the Fed owns more than the 80 percent of company it took with the first loan? Apparently not, though no one’s talking to that point.
AIG officials did defend a recent hunting trip they threw in merry old England for clients, however: it was planned, long, long ago. This explanation did not satisfy Andrew M. Cuomo, attorney general of New York State. After meeting with Cuomo, AIG chairman and CEO Edward M. Liddy agreed to provide the attorney general’s office with documentation of senior executive compensation; will help Cuomo recover “any illegal expenditures;” and will “immediately cancel all junkets or perks which are not strictly justified by legitimate business needs,” according to AIG. That adds up to more than 160 events, including a $750,000 meeting in Vegas and $500,000 risk management conference in Half Moon Bay.
