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Benmosche Ready To Leave AIG After Only 3 Months As Job Not Proving To Be Expected Cash Cow

Tyler Durden's picture




 

And another one for the idiot anals of the Obama administration. After taking over the biggest nationalization in history (with the exception of the GSE's but those are a special case), and being paid to run a zombie bankrupt company instead of saving everyone a few dollars and packing it in, Robert Benmosche, who became CEO of AIG a mere three months ago, has threatened to quit in protest to stern governmental compensation oversight. At least Benmosche made some very powerful enemies during his short time in the hot seat, including the NY AG. Perhaps Ken Lewis will consider the corner office position once Mr. Benmosche returns to his palatial Croatian estate. Unless, of course, the lawsuit against the former BofA CEO does not go quite as well as expected. Ironically, running AIG out of a jail cell would be the crowning achievement of what the current version of capitalism is all about.

From the WSJ:

Last week, Mr. Benmosche and other AIG board members met with Mr.
Feinberg in New York. During the three-hour meeting, board members
discussed difficulties of complying with pay policies and retaining
talent at the company. Mr. Benmosche's frustrations "hit a crescendo,"
said a person familiar with the matter. "Bob feels he is in an
impossible situation," the person added. Mr. Benmosche didn't respond
to a request for comment.

The move is likely to make a variety of HFT algos very unhappy, as these have been churning AIG's stock with the reckless abandon of trading a viable blue chip instead of the toxic husk of a bankrupt entity, which not only should not be paying its CEO even one nickel in compensation, but should be immediately entombed before it gobbles up even more taxpayer capital.

Were Mr. Benmosche to depart, the move could be highly disruptive. AIG
is in a long-term battle to pay taxpayers back roughly $90 billion. It
is trying to keep its businesses stable and its employees motivated
while also laying plans to sell off big chunks of the company.

Who would have thought corporate communism could be so unrelenting.

 

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Wed, 11/11/2009 - 11:00 | 127008 Missing_Link
Missing_Link's picture

And another one for the idiot anals of the Obama administration.

I think you mean "annals."

Then again, maybe not.

Wed, 11/11/2009 - 11:42 | 127057 deadhead
deadhead's picture

you found an easter egg.  kudos.

Wed, 11/11/2009 - 11:04 | 127009 lsbumblebee
lsbumblebee's picture

My goodness what a difficult decision. Give the psycho what he wants or don't give the psycho what he wants. What to do...what to do...

Wed, 11/11/2009 - 11:16 | 127026 whydtinogo
whydtinogo's picture

What did he expect - he arrives on 7 million, three in cash and then has to get his senior management to do their job after taking a 95% reduction in cash earnings - it gonna happen. "Hey fellas we're all in this together - NOT". BTW anybody see the report from Moody's forecasting AIG pays the government back? Is it posted anywhere? Ironic that the GAO came over all pessimistic and the allegd free market Moody's gets the cheerleaders out.

Wed, 11/11/2009 - 12:45 | 127117 Countrygenius
Countrygenius's picture

Yeah I read the Moody's forecast yesterday.

Makes a person wonder just how dumb the suits on Wall Street think the average person is?

I guess pretty dumb, because we keep letting them shove this phony baloney stuff up our ass.

I truly have no idea how to stop the thieving SOB's, anything I do will get me thrown in jail while The Street Boys continue to steal us blind in broad daylight without recourse.

You know those f^ckers are laughing that came up with the idea of the Federal Reserve. When they got together and thought it up I wonder how many in attendance said , "No way, that can't work! Do you actually think we can get a whole country to hand over all their tax revenues to us?"

And folks thought Einstein had a brilliant mind.

And I'll be damned we did and still are. They are even charging us interest to loan us back our own tax dollars... it just don't get any better than that.

Wed, 11/11/2009 - 11:40 | 127056 Assetman
Assetman's picture

Let me get this straight... you come in as the new CEO of company-- that for all intents and purposes-- should be bankrupt.  You spend the first month of your job on vacation in the Baltics. 

You then decide that after your third month that you and your new buddies aren't being paid enough-- even though a lot of those buddies got egregiously overpaind in the recent past.  I get the sense that the exit strategy is already in the works, and it will be lined with golden thread.

Benmosche leaving or staying is likely not to make any difference, as he is likely to find a way to run this into the ground as someone making $10 per hour.  AIG just needs to go into receivership and have a trustee maximize the sale of the assets remaining.

Why are we dealing with this crap?

Wed, 11/11/2009 - 14:04 | 127207 ghostfaceinvestah
ghostfaceinvestah's picture

Amen.  I thought the plan was to liquidate the company after "the markets rebounded".  Well, the MSM keeps telling me the markets have rebounded, so start liquidating.

This is yet another of Bernanke's failures - he had no business bailing out this company in the first place.  The damage Bernanke has done to America is going to be felt for generations.

Wed, 11/11/2009 - 19:02 | 127677 Hephasteus
Hephasteus's picture

No it's not. It's going to get depressed. It's going to gobble xanex. It's going to die.

Wed, 11/11/2009 - 11:45 | 127062 the.spear
the.spear's picture

Just kill the AIG already. Sheesh, it's like sitting around watching a wounded animal. Put it out of its misery.

Wed, 11/11/2009 - 11:57 | 127073 Anonymous
Anonymous's picture

Hmmm. Can we line up as he leaves the building and give him one kick in the ass for every dollar AIG owes the taxpayer?

Wed, 11/11/2009 - 12:01 | 127077 A Man without Q...
A Man without Qualities's picture

I think we had the measure of the guy when he spent the first month of the job on holiday.  

"AIG is in a long-term battle to pay taxpayers back roughly $90 billion."

I think gold will be $5,000 an ounce before the taxpayers get this money back...


Wed, 11/11/2009 - 12:15 | 127086 bugs_
bugs_'s picture

Fradulent conveyance done.

Wed, 11/11/2009 - 12:22 | 127089 mule65
mule65's picture

If the employees aren't motivated then release them.  There are plenty of good people looking for jobs. WTF?!

Wed, 11/11/2009 - 12:29 | 127099 reading
reading's picture

Agreed.  This idiot has an ego bigger than his Croatian palace and seems to be having trouble with the concept that he is not building an organization he is winding one down.  Nobody gives a shit how much they all think they should get paid -- it's not a going concern, it's bankrupt.  And if the govt or Moody's modeled the repayment of tax payer money based on retention of "valuable" employees at a bankrupt company than that once again indicates they have their head so far up their ass they are actually looking in the other direction.

Wed, 11/11/2009 - 12:38 | 127107 Anonymous
Anonymous's picture

Well you must be kidding me!!! Moody's has its head up its knickers. The government has authorized 182.3 billion for AIG. So far total assistance is 120.7 billion, Aig this week alone took down 4.7 billion more from the government. So perhaps AIG would have to stop borrowing, before Moodys judges if in fact they may be able to pay US back!!! NOT!! AIG is not making money in their core business lines. Only the Maiden Lane project(read more free taxpayer money) and a mark-up on the senior tranch portfolio made the firm a paper profit. AIG has net-tang. book value of 43 billion, how can they pay-back 120.7 billion???? please...Tell this fat dope to remove his diaper, roll up his sleeves and liquidate AIG--that is his job...of a shut your mouth.

Wed, 11/11/2009 - 12:40 | 127109 SteveNYC
SteveNYC's picture

This is the attitude that pervades the highest levels of American business, through all industries.

Is it really any surprise the country has past the event horizon and is being sucked into a black hole? Really, the country has decayed morally, is in denial, and doesn't know how to deal. It's over.

Wed, 11/11/2009 - 12:50 | 127121 The Axe
The Axe's picture

Well you must be kidding me!!! Moody's has its head up its knickers. The government has authorized 182.3 billion for AIG. So far total assistance is 120.7 billion, Aig this week alone took down 4.7 billion more from the government. So perhaps AIG would have to stop borrowing, before Moodys judges if in fact they may be able to pay US back!!! NOT!! AIG is not making money in their core business lines. Only the Maiden Lane project(read more free taxpayer money) and a mark-up on the senior tranch portfolio made the firm a paper profit. AIG has net-tang. book value of 43 billion, how can they pay-back 120.7 billion???? please... Would this guy just shut up, remove his diaper and roll up his sleeves and liquidate AIG, that is his job.

Wed, 11/11/2009 - 12:50 | 127122 The Axe
The Axe's picture

Well you must be kidding me!!! Moody's has its head up its knickers. The government has authorized 182.3 billion for AIG. So far total assistance is 120.7 billion, Aig this week alone took down 4.7 billion more from the government. So perhaps AIG would have to stop borrowing, before Moodys judges if in fact they may be able to pay US back!!! NOT!! AIG is not making money in their core business lines. Only the Maiden Lane project(read more free taxpayer money) and a mark-up on the senior tranch portfolio made the firm a paper profit. AIG has net-tang. book value of 43 billion, how can they pay-back 120.7 billion???? please... Would this guy just shut up, remove his diaper and roll up his sleeves and liquidate AIG, that is his job.

Wed, 11/11/2009 - 13:15 | 127151 E pluribus unum
E pluribus unum's picture

Just how fucking long does it take this guy to turn off the lights, lock the door and paste the "Closed" sign on the window?

Wed, 11/11/2009 - 13:55 | 127198 Rainman
Rainman's picture

Good question !!

Methinx you can't just take this " toxic husk of a bankrupt entity " ( I love it, TD ) and discard it into the shitcan. Like asbestos, it must be carefully disposed of under strict gubmint oversight.

Wed, 11/11/2009 - 13:17 | 127154 Sweetness
Sweetness's picture

It's weird that AIG is still around;  I thought they settled their debt to Goldman...

Wed, 11/11/2009 - 13:18 | 127155 Careless Whisper
Careless Whisper's picture

Give me the money or I crash AIG. More blackmail.

Wed, 11/11/2009 - 13:56 | 127200 laughing_swordfish
laughing_swordfish's picture

Why isn't this pig dead and buried?

Didn't their history book end at Chapter 7?

Wed, 11/11/2009 - 14:06 | 127211 deadhead
deadhead's picture

This will be a perfect job for that lying piece of fecal matter Tim Geithner.

He can lie all day long as ceo of aig while continuing to run this pass through for fed funny money to the rest of the wall st, banking complex thieves and pigs.

it will be great theatre to listen to every aig conference call to hear that lying phuck Geithner proclaim that aig is on track to pay back all of the government money.

by the way, in case i did not make myself clear, the current Treasury Secretary of the United States of America, is a lying phuck.

Wed, 11/11/2009 - 14:20 | 127232 Anonymous
Anonymous's picture

I was in favor of TARP last fall as a way to prevent a total collapse of confidence leading to a total collapse of the system.

But if you are taking taxpayer's money, you have to follow taxpayer's rules...no matter how "socialistic" you think they are. You dont like the rules, fuck you. Pay the money back.

Goldman may be a giant squid paying with outragious compensation, but at least they arent doing it on the the taxpayer's dime. (at least not directly)

If these brains at AIG are so smart that they deserve to be paid 200 times the average human, let them figure out a way to pay back the money they owe first.

Wed, 11/11/2009 - 14:22 | 127235 Anonymous
Anonymous's picture

Don't let the door hit ya in the butt on the way out... Bye bye.

Wed, 11/11/2009 - 15:22 | 127323 Anonymous
Anonymous's picture

Benmosche is the North Korea of the Corporate CEO world. Kick and scream to get what they want with vague threats that the world is somehow dependent on them.

Wed, 11/11/2009 - 15:49 | 127373 reading
reading's picture

Could someone explain to me why this " toxic husk of a bankrupt entity "is still in the S&P 500?

Wed, 11/11/2009 - 15:51 | 127378 reading
reading's picture

However, I guarantee we'll get a new closing high as they pump this piece of shit to the stratosphere on the "news" that Benmosche is "committed to leading the company."  Uh, do they have anyone over there "committed to liquidating the company." Cause that's what their not to exceed $500,000 SALARY is supposed to be paying for.

Wed, 11/11/2009 - 16:01 | 127392 vreporter
vreporter's picture

November 11, 2009

Dear Colleagues:

I'm sure many of you were concerned to see this morning's news accounts speculating about my frustration with the time and effort it is taking to ensure that our top 100 executives are compensated fairly. To be certain, I and the Board are indeed frustrated and we are in ongoing discussions with Treasury and the Special Master to resolve the uncertainty surrounding this issue. However, as I have said before, the vast majority of AIG employees are unaffected by this issue.

Let me be clear: I and the Board remain totally committed to leading AIG through its challenges and to continuing to fight on your behalf. We are all working aggressively to overcome this compensation barrier that stands in the way of restoring AIG's value and allowing us to live up to our obligations to all stakeholders: our customers, who have remained loyal; our nearly 100,000 employees, including 46,000 here in the U.S.; our shareholders and creditors.

You are all doing a great job under difficult circumstances. You have suffered terrible losses - many of you have seen life savings vanish. But you have persevered and we're now seeing progress. Our results for the last two quarters have demonstrated greater stability and our businesses are recovering.

Once again I ask you not to be distracted by speculative media stories and to maintain your focus on the important work you are doing. People - you - make AIG strong and successful. I am impressed every day at all that you are accomplishing and I thank you all. I'm proud to have this opportunity to work with you to restore our company.

Sincerely,

Robert H. Benmosche

Wed, 11/11/2009 - 17:34 | 127542 Anonymous
Anonymous's picture

It is trying to keep its businesses stable and its employees motivated while also laying plans to sell off big chunks of the company.

Trying to keep its employees motivated? Where are they going to go, GMAC?

Wed, 11/11/2009 - 18:05 | 127594 Zippyin Annapolis
Zippyin Annapolis's picture

Why is the NY Fed debt secured at the lowest down the chain AIG asset level and the Treasury debt is in behind all other AIG HoldCo debt? This means that the NY Fed gets paid first and the Uncle Stupid Treasury gets paid (if at all ) last. Why was this changed in  March 2009 with the latest AIG bailout?

 

Dig Tyler dig. Clue: who backstops the NY Fed? And backstops Uncle Stupid?

The odds of any payback is zero.

Wed, 11/11/2009 - 19:37 | 127726 reading
reading's picture

I've decided it'd be worth getting a job there -- just some lowly clerk would do -- to really see what the hell they are doing inside that piece o' crap.  Perhaps one of the motivational challenges they are having is that these employees are intelligent enough to see their company is bankrupt and realize it would be in there personal best interest to move along to any pasture that looks greener before the music stops.  This whole thing has become an absolute joke which I think has very little to do with capping any one of these Zombie bank salaries.

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