Andrew Cuomo: What a difference a political opportunity makes (update).
Walk with me if you will down memory lane. Back to a time before everyone had achieved selective amnesia that allowed them to blame everyone's problems on a small group of people working to fix them.
The date is October 16, 2008. From the office of the Attorney General of New York in a joint statement with AIG.
Now fast forward to today. Considering these retention agreements were in place when this statement was made, what can we infer about the honesty of Mr. Cuomo's recent posturing? Can he really credibly say he didn't know and didn't approve of these agreements? Shouldn't the AIG guys be angry at his new song? Are they wrong to be so?
And where are the "journalists" who are supposed to have memories of events that last longer than the passing hysteria? Like all politicians today, Cuomo is relying on the fact that "the media" can't remember what happened even last Tuesday and will accept whatever meme is handed to them on a silver platter. And sadly, TPM did not disappoint.
No time for accuracy or nuance ... there's outrage to harnass and strawmen to burn. New Media's finest moment, this is not.
UPDATE: Yesterday TPM told us about a letter written by an AIG insider. They chose to excerpt a single sentence highlighting a specific AIG official. The actual text of the letter is pretty interesting. It can easily be construed to fit any number of popular mems rolling about; entitlement, extortion, victimization, etc. Aside from that, there is one key assertion that pertains to Cuomo's amnesia that I found quite interesting:
So did the amount of these awards increase between October 2008 and March 2009? If not, what's the deal?
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The date is October 16, 2008. From the office of the Attorney General of New York in a joint statement with AIG.
The meeting in the Attorney General's New York City Offices occurred one day after Attorney General Cuomo informed AIG that it must recover improper bonuses and other payments and perks from its former executives or Cuomo would do so pursuant to New York law....
....Attorney General Cuomo added, "These actions are not intended to jeopardize the hard-earned compensation of the vast majority of AIG's employees, including retention and severance arrangements, who are essential to rebuilding AIG and the economy of New York."
Now fast forward to today. Considering these retention agreements were in place when this statement was made, what can we infer about the honesty of Mr. Cuomo's recent posturing? Can he really credibly say he didn't know and didn't approve of these agreements? Shouldn't the AIG guys be angry at his new song? Are they wrong to be so?
And where are the "journalists" who are supposed to have memories of events that last longer than the passing hysteria? Like all politicians today, Cuomo is relying on the fact that "the media" can't remember what happened even last Tuesday and will accept whatever meme is handed to them on a silver platter. And sadly, TPM did not disappoint.
No time for accuracy or nuance ... there's outrage to harnass and strawmen to burn. New Media's finest moment, this is not.
UPDATE: Yesterday TPM told us about a letter written by an AIG insider. They chose to excerpt a single sentence highlighting a specific AIG official. The actual text of the letter is pretty interesting. It can easily be construed to fit any number of popular mems rolling about; entitlement, extortion, victimization, etc. Aside from that, there is one key assertion that pertains to Cuomo's amnesia that I found quite interesting:
1) On October 22nd 2008 (one month after bailout) Andrew Cuomo reaffirmed our right to payments under the retention plan.Now one MAJOR caveat: this is an based on an anonymous letter (that TPM and other media outlets have chosen to accept as genuine). But if this is indeed genuine, it indicates that not only did Cuomo know about AIG retention awards generally, he addressed the awards for AIGFP employees specifically about 2 weeks after the official joint statement. Apparently at that point he had absolutely no problem with them.
2) On October 9th Bill Dooley, the head of financial services at AIG, restated that the treasury and AIG were committed to payments under the ERP.
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6) AIG prepaid 30% of the ERP amount in December with their hearty thanks for a job well done. The treasury knew of and had to approve this.
So did the amount of these awards increase between October 2008 and March 2009? If not, what's the deal?
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Interesting. I mean, it's painfully obvious that Cuomo is grandstanding to improve his image so he can run for higher office. The real question is whether he plans to challenge Patterson or Gillibrand in the primary. Any thoughts?
March 26, 2009 7:58 PM | Reply | Permalink
My biggest thought is that it's a tossup if Illinois or New York is more corrupt. If he wants it, Patterson's job seems to be his for the taking - it certainly seems the path of least resistance.
Any thoughts on him pretending he knew nothing about retention agreements today despite seeming to explicitly acknowledge and approve of them last October?
March 26, 2009 8:57 PM | Reply | Permalink
Pretending would suggest he danced around questions specifically about it, or even lied directly. Niether of those happened. Not that I'm defending Cuomo here, hes doing the standard politician dance- ignore what you've said in the past when its convenient for it to never have happened. Seeing as they all do it, it must work all the time, just ask President McCain
Oh.... right ;)
March 26, 2009 9:21 PM | Reply | Permalink
So you are saying he's honest by virtue of the fact that reporters refuse to do their jobs?
March 26, 2009 10:09 PM | Reply | Permalink
A crooked man is honest until honest men call him crooked, at which point the only recourse for the crooked man is honesty.
So yes, if the media would do its job and call him on it, I would like to think he would show his true worth and admit it.
But I'd be wrong, I'm sure
We're 100% on the same page here, kgb
March 26, 2009 11:19 PM | Reply | Permalink
That's a very philosophical take on it. I appreciated the implication in the first post ... just wanted to see if I was taking the right message.
I think you've helped me put my finger on exactly why I'm so grumpy. I sort of got in the habit of looking to TPM to be my honest man.
March 27, 2009 12:19 AM | Reply | Permalink
Its a pleasure to serve kgb
March 27, 2009 10:06 AM | Reply | Permalink
Are you overstating his allegation of ignorance?
Do you have an exact quote in context which presents the contradiction?
March 27, 2009 3:31 PM | Reply | Permalink
sorry, hit submit too soon...
The point is that Cuomo's "posturing" can be understood as him being properly responsive to public outcry (whether the outrage is artificial or not, is a separate issue). And it's just possible that by shaking the tree something bigger might fall out.
March 27, 2009 3:34 PM | Reply | Permalink
It certainly appears Cuomo personally approved the retention agreements that now (in response to public outrage) he is demanding back. This doesn't seem like shaking a tree for bad apples to me. This seems like seizing an opportunity to score cheap political points at the expense of people with whom he negotiated agreements in the name of the American Citizen. I feel he's operating under the (correct) belief that he's politically protected from the press questioning his actions.
I agree, he hasn't come right out an lied about it ... because nobody has asked him. But from his public statements, he has given a clear impression that he didn't have anything to do with it. Which is not honest. Geithner, Dodd, and dozens of other politicians are just as dishonest. I just happened to come across documentation for Coumo ... so he's my target.
I got REALLY pissed at that Muckraker story the other day ... this is my attempt at a constructive response (vs. flaming all of Moe's posts with her not-so-distinguished journalistic history).
March 27, 2009 4:09 PM | Reply | Permalink
"he has given a clear impression that he didn't have anything to do with it"
I don't have that impression. Maybe I've missed something he actually said, I haven't been following him closely. I think the whole "bonus" issue the past two weeks has been 98% red herring.
March 27, 2009 4:22 PM | Reply | Permalink
Oh KGB I think it is political. But Cuomo is the only guy who has gotten results on this story that will not go away.
And Cable is kind of ignoring him.
At least I do not see him getting coverage.
Hell, he got a lot of money back.
March 26, 2009 8:01 PM | Reply | Permalink
Care to elaborate? How exactly did he get a lot of money back and from whom?
March 26, 2009 8:51 PM | Reply | Permalink
It was reported here at TPM and elsewhere that nine of the top ten bonuses and 15 of the top twenty bonuses were returned to AIG
March 26, 2009 9:09 PM | Reply | Permalink
Oh, you mean Cuomo's gentle hint to "voluntarily" return them...
March 26, 2009 10:02 PM | Reply | Permalink
Yeah, a gentle hint, a subpoenas, and investigations...
March 26, 2009 10:04 PM | Reply | Permalink
And telling the people who were issuing death threats where to find their kids?
March 26, 2009 10:10 PM | Reply | Permalink
That's what I thought you meant. I'm not ready to give him too much credit on that. There were an awful lot of events that happened awful quickly that involved an awful lot of players.
But any way it goes ... why do you think it was appropriate for Cuomo to demand they return money he seemingly approved of in October? And doesn't that support DeSantis' claim that AIG workers were told by everyone the deal was kosher right up until the lynch mob was formed?
March 26, 2009 10:15 PM | Reply | Permalink
KGB, it appears I drank from the TPM well, without testing the water first. It looks like you are making points here that I had not considered.
There are death threats out there. Tens of thousands if you look at the entire spectrum of things. I mean people want to kill Keith O and bill orally.
Publications of names, let alone addresses, have to be considered in all cases.
And when I think about it, I do not know why employes were given bonuses on an individual basis.
You look at Madoff and how he made sure his wife had a hundred mill before he went down.
You look at execs getting tens of millions in compensation while their companies were sinking and they had access to all the information.
I was against the tens of millions in compensation anyway. But I have posted that sentiment in other blogs.
Cuomo is taking advantage of a situation, I am sure.
At any rate, you have forced me to take a more informed approach about all this.
March 27, 2009 5:38 AM | Reply | Permalink
I think your assertion that Cuomo's newly found certitude regarding AIG's bonuses is entirely politically motivated is completely correct. The situation as I (somewhat) understand it: Patterson is beyond vulnerable, NY is a fiscal hole and there is really not a whole lot he can get done prior to his running for reelection. Cuomo knows this and becomes the crusader that Spitzer actually was when he had the NY AG position.
He had without question approved of these bonuses prior to seeing an opening to translate populist anger into potential votes. Ballsy? Yep. Questionable? Absolutely. But if nobody calls him on it, what can you say?? This goes far beyond TPM, this should be on the news--but heaven forbid they take their eyes off of the oh-so-pertinent Obama telestrator story to actually report news...
March 27, 2009 9:26 AM | Reply | Permalink
Thanks for that.
One impression you have I really believe is off base. The CDS traders were based out of London and answered directly to Cassano. AIG's own internal auditor was frozen out.
Barring some evidence to the contrary ... why would we expect the commodities traders in Connecticut had access to the books (or any information) on the CDS portfolio? That doesn't make a lot of sense.
March 27, 2009 10:28 AM | Reply | Permalink
This is in response to DD's upthread comment.
March 27, 2009 10:29 AM | Reply | Permalink
I believe that young Cuomo has a bright political future. Don't bet against this fellow.
March 27, 2009 11:21 AM | Reply | Permalink
I have no pony in NY politics one way or the other. I'm not betting against him ... I'm saying he's being less than honest in his recent posturing. Sadly, those are generally the sort that do exceedingly well.
I just think the bigger scandal in this AIG retention award situation is that the record indicates many (most) of these politicians knew about the existence of retention agreements and approved of them but now "pretend" (see comments upthread) they never had a thing to do with it.
March 27, 2009 12:08 PM | Reply | Permalink
Cuomo is an opportunist, and he has seized the opportunity.
The fact that he was ok with the bonuses before he was outraged is important, but my prediction? It's not going to get much airplay until he makes it clear he's going to run for governor. And I'm quite certain that is what he's gunning for.
If he decides to run against Patterson, I'm sure Patterson will bring this aboutface up. But if Patterson decides to step down, who's going to bring this up? A Republican? Doubtful.
This whole bonusmania has been ridiculous. I don't know why someone needs to get a bazillion dollars for their job performance, but for everyone to be SHOCKED, SHOCKED!!! when this shit was out there already just seems inane.
And to threaten to publish names, addresses and phone numbers is downright irresponsible. Asshole, all of them.
March 27, 2009 1:58 PM | Reply | Permalink
Oh, I don't know ... maybe an HONEST JOURNALIST?
March 27, 2009 2:23 PM | Reply | Permalink
It's shameful, isn't it?
And with the disappearing newspapers, we'll be even less well-informed. I'm really concerned, actually.
March 27, 2009 3:14 PM | Reply | Permalink
This post sounds like a planted piece from AIG's PR firm. Cuomo is not going after the "vast majority" of the workers. He is also doing far more investigation than just the bonuses.
AIG has every reason to try and shut Cuomo down and smear his credibility, especially as Cuomo appears to be trying to morph into Spitzer. I fully expect to shortly see TPM posts on Cuomo's messy divorce.
Good work, TPM and Cuomo. AIG is feeling the heat. Now let's bring Spitzer back.
March 27, 2009 3:37 PM | Reply | Permalink
Check my profile. What, I'm a sleeper agent planted back in primaries to do AIG's bidding?
It's a weak mind that attacks the messenger instead of answering the criticism.
March 27, 2009 3:48 PM | Reply | Permalink
Oh, one thing you should never be called is a sleeper. I read everything you draft. Or draft and publish. So I defend you here as if you need little ole me.
You bring up issues that we have to face. If I do not do the proper research, then it is my bad.
I am not throwing Cuomo under the bus. But who the participants are and what country they are from might be important factors to consider.
And you have made me do that.
March 27, 2009 4:08 PM | Reply | Permalink
kgb999, I am not attacking you nor am I calling you a sleeper. I just said it sounds like a planted piece. And you are doing AIG's bidding, conscious or not. I want AIG subpoenaed on many issues and, if Cuomo is doing that and bringing them more heat than the the Federal Government is, I am all for it.
My belief is that the Federal Government has long been captive to Wall Street and that the only enforcement that we have gotten for many years has been from the NY government. So I am on Cuomo's side in this, regardless of your pouncing on the "who knew what when?" tact on these bonuses.
Speaking of "attacking the messenger," I would note that you have been attacking TPM's credibility and credulity in this very post, so settle down. So, I know you are, but what am I?
March 27, 2009 4:29 PM | Reply | Permalink
To an extent, that is my intent. I have a specific issue over the accuracy and honesty with which the issue of retention agreements has been addressed at TPM. In particular, I feel that quotes have been selectively massaged - and facts selectively omitted - to give a completely dishonest impression. Moreover, when addressing concerns presented by myself and others Josh came up with a response about meta-narratives and the fabric of society that did not, in my opinion, answer the actual criticism.
In specific I feel that TPM has focused entirely on a handful of employees and in so doing has accepted the framing of the same politicians that you and I both agree are in the thrall of Wall Street (do you honestly think Cuomo isn't rolling in sweet Wall Street cash?). Where our opinions diverge is that I feel the story of which politicians are blaming others for their own actions is important; While you seem to think if they meet your ends than it is fine to overlook the questionable behavior and motivations of the politicians. I fear that someone with a lot more money than the guys winding down AIGFP is pushing to vilify this small group as a distraction.
I also feel that crushing the innocent for political gain is evil. The fact that Cuomo is using questionable means to attack AIG doesn't make me happy, even though like you I want to get to the root of what happened to our &^%&%#& money.
This is a strong response to a specific message - promoted by TPM - that the facts I am presenting would seem to counter. So I am answering the message and at the same time criticizing the messenger a bit because I feel really let down.
If you feel that DESPITE the fact that Cuomo helped to craft and approve the agreements he's now attacking, he's still in the right - fine. I disagree. But that's not what you said in the first post. If you feel the facts I am questioning are not accurate, please explain why and I will gladly correct myself. In this case I think AIG was in the right - sorry if it interferes with you getting your class warfare on.
March 27, 2009 5:29 PM | Reply | Permalink
Great piece kgb999 and I think Eds comment about these bonuses being a red herring holds validity as well.
It annoys me people are not placing more scrutiny on the people that wrote these retention bonus contracts in the first place.
If my boss came to me and said, if you bring down the risk on a portfolio you've been working on for months. A portfolio, you are uniquely familiar with more so than anyone else I could bring in to do the job. AND, If I did what was ask of me, why shouldn't I expect the money I was told I would receive.
Management came to them, not the other way around. So why are we not placing more emphasis on the people who, came up with this unprecedented idea but knew about it and didn't stop to think how it would play out in the future. Or, maybe they did...
March 27, 2009 5:52 PM | Reply | Permalink
The anonymous letter upon which this post was premised, states without proof that "Cuomo reaffirmed the rights of AIGFP employees to their payments under the retention plan." The letter also blames the New York and Federal Government for the collapse of the financial system of the US and calls out by name Frank, Dodd and Spitzer as the perps. It also states that, "[h]opefully Cuomo will meet the destiny of the last New York Attorney General to mess with AIG, Spitzer."
The anonymous letter itself reads like a place PR piece and a threat to any Democrats in a position regulate or enforce the law against AIG, especially Cuomo.
I note also that the sole apparent purpose of this post was to cast opprobrium on Cuomo and to pout that TPM and other media outlets are not concentrating on that slant of the anonymous letter. The poster believes, emphatically(!), that "AIG is in the right." The poster wants TPM and the media to ask "what did Cuomo know and when?"--thereby, turning Cuomo into the perp.
If the poster is not getting paid for shilling on behalf of AIG, he should be. Bring on the subpoenas, Cuomo.
March 27, 2009 6:52 PM | Reply | Permalink
From what I can gather it wasn't a letter but a joint statement that seems to have been released through AIG. Here is a PDF version with a contact name and phone number.
http://media.corporate-ir.net/media_files/irol/76/76115/releases/101608a.pdf
It was also reported in Bloomberg news.
http://www.bloomberg.com/apps/news?pid=20601103&refer=us&sid=amoF72Pxf4.Q
March 27, 2009 8:10 PM | Reply | Permalink
Here is another reference.
http://www.upi.com/Business_News/2008/10/16/AIG_Cuomo_meet_over_company_expenses/UPI-55921224181159/
The bottom line, Cuomo didn't have a problem with the retention bonuses back in October. The very same retention bonuses, he is all up in arms over now.
March 27, 2009 8:19 PM | Reply | Permalink
The anonymous letter upon which the poster relies is here.
http://www.businessinsider.com/aig-guy-the-entire-us-system-is-committing-suicide-2009-3
The joint NYAG/AIG statement did not "reaffirm" the AIGFP bonuses but rather stated that AIG would cooperate with the AG on compensation issues. Aside from their PR campaign to smear him, that is.
March 27, 2009 8:23 PM | Reply | Permalink
You're missing the point. Cuomo not only understood but didn't object to the compensation package he is now vigorously going after.
He seems to be playing on the public's misunderstanding of what this package actually was.
It was NOT a bonus in the sense, we make money you make money but a deal asking these people not to quit and do a specific job.
Once they had performed their particular job to managements satisfaction in their area of expertise, they were free to leave and receive what they were promised.
Together these people brought down a 2 plus trillion dollar liability down to 1 plus trillion dollars. I would say they did a hell of a job with more to be done. However, they fulfilled their end of the bargain and Cuomo knows this.
I've posted the links to the c-span hearings several times. I'm passed the point of trying to lead horses to water and make them drink but please feel free to check it out. It's three hours long and the grandstanding from Congress is annoying but Liddy's testimony is extremely revealing.
March 27, 2009 8:36 PM | Reply | Permalink
Listen, these employees had every legal right to that money. Was it the ethical thing to do to take it under the circumstances, that's on their conscious but I'm more concerned with the people that wrote these contracts in the first place. These contracts were written without precedent and any businessman in a sane form of mind would never have conceived this.
All that aside, the point this blog was making, Cuomo's actions come off more as political posturing. I agree.
March 27, 2009 8:46 PM | Reply | Permalink
Matt Taibbi researched the AIGFP bonuses specifically. He doesn't buy all of this whining and I tend to agree.
http://www.alternet.org/columnists/story/133627/aig_exec_whines_about_public_anger%2C_and_now_we%27re_supposed_to_pity_him_yeah%2C_right/
Politicians grandstanding...AIG and Wall Street conducting concerted PR and lobbying campaigns (including phony grass roots letters that end up in the media and are pushed by gullible bloggers!)...Whatever.
Bring on the AIG subpoenas, Cuomo. Not class warfare. Looking for evidence of fraud and criminal conduct. AIG has a long, sordid history of fraud and they will do anything to make a clean getaway.
March 27, 2009 9:29 PM | Reply | Permalink
I think Cassano and his merry band of thieves are as low as one could get but this was written as opinion piece on the motives of Cuomo. You can agree or disagree, that is your right. I continue to believe the premise that he is positioning himself to run for governor. I think that is not only plausible but highly likely.
It's not a matter of being gullible but being able to read.
These are the same bonuses he is now going after!
March 27, 2009 10:14 PM | Reply | Permalink
There is nothing wrong with retention bonuses. There is something radically wrong with the obscene amounts of the bonuses the head honcho's took. It's sad that the onus can't be placed where it belongs..on the executives of industry and the U.S. government..not because of these bonuses, but because of years of legalized corporate theft. Is AIG the only corporation that did this, or are they the only ones who got caught?
March 27, 2009 11:25 PM | Reply | Permalink
Note that "the vast majority of AIG's employees" does not mean all of AIG's employees. Apparently, AIGFP had 300-some employees, while all of AIG had 100,000-some.
I am not surprised at the scrutiny of the bonuses from the toxic unit, AIGFP, I am not surprised at the subsequent outrage and I am not surprised that Cuomo may have intentions to run for higher office.
There is a long history of NY prosecutors enforcing our laws against financial scofflaws and using that as a springboard to higher office, to wit, Elliott Spitzer and Rudolph Giulliani. So what?
The post demonized Cuomo to defend AIG and used planted whines from AIGFP executives to do it, which I consider to be shilling for AIG and Wall Street. I'm on Cuomo's side and I want to know what happened at AIG. Bring on the subpoenas.
March 27, 2009 11:25 PM | Reply | Permalink
Maybe you and I comprehend things differently because I do not see this demonizing you speak of.
The poster brought up a specific question regarding the retention bonuses. In October of 2008 Cuomo didn't have a problem with them. In March 2009, he did. Was he accused of anything no, were his motives questioned, yes.
Was AIG legally in the right to give out these retention bonuses? Based on the contracts, yes. (Note the poster said, in this case I think AIG was right). That's not a blanket endorsement of AIG.
I think dissenting opinions are great but I do have a pet peeve about dissenting opinions as well as accusations based on inaccurate info. You are the one making the accusations, the poster was questioning the actions of the NY Attorney General. Questioning, not accusing.
March 27, 2009 11:54 PM | Reply | Permalink
I want to be clear. Cuomo's newly-issued subpoenas are casting a broad net and go far beyond any bonus issues. The bonus issues are a red herring at this point. In fact, it appears that AIG is using their wounded AIG executives to launch a PR campaign against Cuomo-"What did he know and when?" They tried to do the same thing to Obama and Geithner, if you recall.
They don't want any investigations so they need to smear and threaten Cuomo. They are smearing and threatening Frank and Dodd. Rahm Emmanuel too. It's obvious to me that it's a PR campaign orchestrated by AIG and the rest of Wall Street to forestall what's coming.
Let's look at another line in the letter on which this post is based. The anonymous AIG executive says that Elliott Spitzer was taken out for "messing with AIG" and hopes that the same happens to Cuomo. These are the type of statements a criminal thug would make.
I just don't understand why the poster and so many of the commenters do the bidding of AIG against the one man who can get to the bottom of the AIG mess. So what if
Andrew Cuomo wants to run for Senator or Governor?
March 28, 2009 12:26 AM | Reply | Permalink
MAH, you're still missing the point. The title of the thread:Andrew Cuomo: What a difference a political opportunity makes
(key words being, political opportunity)
This was about his motives, no one is upset if he goes after the bad guys. This was simply about his motives. Nothing more, nothing less.
Good Nite
March 28, 2009 1:16 AM | Reply | Permalink
Let me explain something, when I say no one cares, I'm not saying Cuomo shouldn't go after these guys, I'm saying THAT was not the issue. Cuomo's political motives were the focus.
If he gets to the bottom of all of this, and hangs AIG out to dry, more power to him but that doesn't mean people do no have the right to questions his motives.
You believe whatever you want to believe about Saint Cuomo, whatever floats your boat.
March 28, 2009 1:49 AM | Reply | Permalink