A.I.G., the backbone that runs one inch beneath the surface of the global economy, has gotten itself millions of dollars worth of free PR today by just considering joining a lawsuit against the U.S. government. To sue, or not to sue? To be ungrateful bastards, or to potentially miss a payday? It's not a complicated question, really.
Frank Wisner, our special envoy to Egypt and Barack Obama's point man for managing the ongoing crisis there, planted a big wet kiss on Hosni Mubarak over the weekend when he told attendees of a German security conference that Mubarak "must stay in office," which is not even remotely close to what Barack Obama has been saying.
Harvard grad Will Meyerhofer used to be a lawyer at Sullivan & Cromwell, the white shoe firm that represents the likes of AIG and Goldman Sachs. After doing his "part in destroying the nation's economy," he had a change of heart, went back to school, and became a psychotherapist. Now sees clients on a sliding scale, ranging from $10/hour for people who couldn't otherwise afford therapy to $200/hour for his former colleagues, who, we imagine, have a lot to get off their chests considering how much work they continue to do for both AIG and Goldman. [Above the Law]
Let's all take a moment to thank our friends at AIG. In the spirit of generosity, employees at the ruined insurance giant have agreed to a $20 million reduction in the $195 million in bonus payments they were previously promised. They didn't have to do it. But they did. To make you happy. Can't we all get along now? [WSJ]
Treasury Secretary Tim Geithner got the pounding he was most certainly expecting when he headed to Capitol Hill today to answer questions about the bailout of AIG. If you missed it because you spent the entire afternoon discussing that new unfortunately-named oversized iPhone that Apple introduced today, you can watch one of the more heated exchanges after the jump.
After everything that's happened over the past year and half, you'd think it would be obvious to AIG and its CEO Robert Benmosche that the company probably shouldn't be using its five (yes, five) corporate jets to ferry AIG execs off on vacation. You'd be wrong. Fortunately, Benmosche and government regulators have now settled on a "Luxury Expenditure Policy," so when Benmosche diverts one of AIG's planes to stop off at his vacation home in Croatia in the future, he'll have to reimburse the company for the flight. [WSJ, Reuters]
Remember those protests outside AIG last fall? Those angry hearings in Washington? The bus trips to visit the suburban homes of AIG executives. The populist anger has subsided a good deal since then (even if the bill to bail out the firm has gone up), which is probably why five AIG executives are now threatening to quit the company if their pay is cut by Washington. [WSJ]