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AIG Execs' Bonus Hold-Out, The Pitch for Expanded Powers, DOJ Invokes 'State Secrets

POSTED: 10:04 AM ET, 03/25/2009 by Amanda Zamora

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Quotable

quotable

I think your initial decision to honor the contracts was both ethical and financially astute, but it seems to have been politically unwise. It's now apparent that you either misunderstood the agreements that you had made -- tacit or otherwise -- with the Federal Reserve, the Treasury, various members of Congress and Attorney General Andrew Cuomo of New York, or were not strong enough to withstand the shifting political winds."
Resignation letter of AIG executive Jake DeSantis, addressed to CEO Edward Liddy

AIG's London Execs Hold Out » Aides for New York Attorney General Andrew Cuomo have confirmed that many, if not all, of those who have held on to their bonuses are based in London, where AIG's financial products division has been held responsible for a large portion of the insurer's spectacular losses. — The Times

The Pitch for Expanded Powers » While Treasury Secretary Timothy F. Geithner and Federal Reserve Chairman Ben S. Bernanke are unified in calling for new authority to wind down non-bank financial firms, the men have yet to agree on who should get this new power. — Washington Post

DOJ Invokes 'State Secrets' » Civil liberties advocates are accusing the Obama administration of forsaking campaign rhetoric and adopting the same expansive arguments that his predecessor used to cloak some of the most sensitive intelligence-gathering programs of the Bush White House. — Washington Post

GAO Faults Labor Agency » Government investigators find the Labor Department's Wage and Hour Division — charged with enforcing minimum wage, overtime and many other labor laws — is failing in that role, leaving millions of workers vulnerable. — New York Times

CIA Sounds E-Voting Alarm » In a presentation that could provide disturbing lessons for the United States, CIA cybersecurity expert Steve Stigall summarized what he described as attempts to use computers to undermine democratic elections in developing nations. — McClatchy

After the jump...

BEST OF THE REST
» Shady AIDS Charity With a Big Web Campaign (ProPublica)
» GAO Cites Fraud in Small Business Program (USAT)
» Stanford reportedly may hire DeLay attorney (BusinessWeek)
» Gov. Palin dismisses 'bogus' ethics complaints (ADN)
» Daley on hiring fraud: 'I am sorry' (Sun-Times)
» Judge may release more Kilpatrick text messages (DetroitNews)
» Md. Medicaid crackdown can't beat industry opposition (BaltimoreSun)
» Kan. weighs tying drug testing to state aid (CJOnline)
» EPA to Review Mountaintop Mining Permits (WaPo)
» $4 Million Severance Elicits Outrage in France (WaPo)

By Amanda Zamora |  March 25, 2009; 10:04 AM ET The Daily Read
Previous: Bernanke Sought Lawsuit Over AIG Bonuses | Next: 'Black Box' Casts Doubt on Buffalo Crash Theory

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Posted by: ldsw | March 26, 2009 2:39 PM

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