All had received some form of government rescue financing. All but Bank of America began to comply quickly, and provided reams of bonus and compensation data to the Attorney General, sources said. At the end of last week, Bank of America was served a subpoena and, as of today, it too was providing the demanded documents to the Attorney General.
"Goldman Sachs, a firm which has received far less in federal funds than AIG, has made a significant decision in announcing earlier this week that some of its top executives will not get bonuses this year," Cuomo's letter to AIG stated. "UBS and Barclays, neither of whom have been bailed out by taxpayers like AIG, have now followed a similar path. Please inform my Office as soon as possible what AIG plans to do with respect to executive bonuses and pay raises this year. As you know, I believe AIG's decision has significant legal ramifications."
The saga of AIG's extravagance has unfolded slowly, even as the firm began to spend the bailout money it was allotted.
The first letter to AIG was sent in mid October when, despite the bailout, the firm continued to treat its senior executives to posh retreats, maintained a sky box with a half million dollar view at Madison Square Garden, according to an exclusive report by ABCNews.com's The Blotter, and racked up hundreds of thousands of dollars in expenses that Cuomo said were "unwarranted and extravagant."
Following that letter in mid-October, the firm cancelled 160 corporate retreats, seminars and other events with prices as high as $750,000 per venue: one partridge hunt alone cost about $90,000.
AIG and the Attorney General issued a joint statement memorializing the agreement which also included the cancellation of a $10,000,000 compensation package to the firm's chief financial officer.
Subsequently, the Attorney General sent AIG a second letter on Oct. 22 acknowledging that the firm agreed that it would make no bonus or deferred compensation disbursements from a fund of $600 million set aside for the executives of a financial subsidiary whose actions had contributed to the firm's collapse.
"I find it hard to conceive of a situation where you could justify a performance bonus for management that virtually bankrupted the company," Cuomo said in a conference call with reporters at the time.
AIG at that time also agreed to cancel a compensation package worth $19 million to the firm's former CEO.