More Questions for Pay Czar Over AIG Severance
Earlier in the month, Sen. Charles Grassley (R-Iowa) had some questions for the administration about just how it happened that a top AIG lawyer was given millions of dollars in severance after she quit the bailed-out company in lieu of accepting a pay cut.
Yesterday, Grassley was at it again, asking Kenneth Feinberg — executive pay czar for the Troubled Asset Relief Program — for details of yet another enormous AIG severance deal, this one to Suzanne Folsom, the company’s former chief compliance and regulatory officer. AIG announced last month that Folsom left “to pursue other opportunities.” She was reportedly given more than $1 million in the process.
Grassley wants the details surrounding Folsom’s windfall, including “copies of all severance plans or arrangements signed by Ms. Folsom.”
You can already hear the complaints from Wall Street: Who cares about $1 million in this universe of billion-dollar payouts and trillion-dollar leverage arrangements? But that, of course, is precisely the sentiment that led to the historic bank collapse.