Florida Firefighters Burned By AIG Fraud?

Massive Lawsuit Claims Deception By Insurance Giant Caused Fire And Police Pension Money To Go Up In Smoke

(CBS)  Police and firemen in Jacksonville, Florida, say their pension fund took a $3 million hit based on what they charge was securities fraud by high ranking executives at AIG, reports CBS News chief investigative correspondent Armen Keteyian.

"They’re corporate criminals and boardroom bandits," John Keane, executive director of the Jacksonville Fire and Pension Fund told CBS News, "It was a financial house of cards in a windstorm."

The Jacksonville Police and Fire Pension Fund is part of a massive class action lawsuit against the one-time insurance giant. The complaint accuses the company of losing tens of billions of dollars and involves more than 700,000 state and government employees and investors across the country.

The lawsuit claims that former AIG CEO Martin Sullivan, and ex-Chief Financial Officer Steven Bensinger, among others, conducted a "campaign to obscure the true risks facing the company” in part, by denying any problems with AIG securities tied to subprime loans.

Jacksonville District Fire Chief Randy Wyse says, "Our members surely want [AIG executives] to be held accountable if there was any wrongdoing."

CBS News has learned that officials at Pricewaterhouse Coopers-AIG’s independent auditor-are cooperating with Justice Department and S.E.C investigations into AIG.

Sources say auditors at PwC have told federal prosecutors that they were repeatedly denied access to key information and employees by senior AIG executives.

The auditors say it wasn’t until the first week of November 2007-after weeks of stonewalling-that AIG officials revealed that six investment banks were demanding at least $3 billion to cover potential losses tied to risky mortgages.

In a conference call with investors on December 5, 2007, then CEO Sullivan downplayed any problems with AIG’s portfolio, "The probability that it will sustain an economic loss is close to zero."

"No risk to the company? No risk to the investors? No risk in the underlying assets?" said Keane. "False. False. False."

During the same call with investors, Joseph Cassano, who headed up the financial products unit at the heart of the company’s collapse, was not quite as confident. "I know it’s going to be volatile," Cassano said in response to one question. "I know it's going to be dynamic and we’re going to be in this phase for quite a while, and at least through the end of the quarter."

Sullivan declined repeated requests for comment from CBS News.

Tracked down outside his summer home, former CFO Steven Bensinger, also declined comment, saying, "I’m sorry, I’m not talking about this."

Documents show that Bensinger earned more than $20 million as CFO and could receive $10 million more in severance money. Meanwhile, the men and women hired to protect Jacksonville have seen 70 years worth of their pension money go up in smoke.

[pensacola8-2009]

My employer doesn't offer pensions any more. I don't care of firefighters or police officers loose their pensions. It is a national trend. Say goodbye to pensions.

[tincup356]

AIG has turned out to be real scumbags,,,it was reported today that they were denying all claims for hospital costs and lost luggage for people that were on the plane that crash landed in the Hudson river.Just another case of too big to pay in America,,,has anyone noticed how congress, Washington and corporate America all of a sudden have all the money and they don't seem to care about the people anymore? More change we cannot believe in. Next thing you know they will be rewriting the preamble to the constitution to read "We of Corporate America" instead of "We the People". It is quite evident that the people of this country ARE NOT represented by ANYONE in Washington.

[quapawsix]

Now we are in the Summer of our discontent. With outrageous indignation we pose the question was the American People asleep at the wheel or is it because they don't want to think for themselves. This is nothing more than the money scheme that was cooked up by the the very people we put in charge Repukes and Demogogs, and their good buddies, the banker elite.
It's time to end the GOV/CORP agreement.

[tincup356]

Americans have gone brain dead. Why will no one admit.......That BOTH parties are to blame for ALL our problems,,,,they have BOTH contributed to our misery. Picking between the two parties is about the same thing as picking between the crypts or the bloods, the ONLY difference is Republicans and Democrats wear suits and ties.THAT is the ONLY difference,,,,other than that they are identical organized crime syndicates, their only purpose is to prey upon the people and STEAL MONEY. If we don't have a revolt to remove them BOTH, "We the People " will very soon become extinct.

[mainermike]

AS I SEE IT, by Mike "Mainer Mike" Brown.

It's bad enough to rip off someone. But firefighters-that's the ultimate low blow.

These men and women are true heroes who risk it all.

Don't expect these executives that apparently ripped these brave firefighters off to be rescued from a fire anytime soon.

Or at least, if I were a fireman, I wouldn't.

[mainermike]

AS I SEE IT, by Mike "Mainer Mike" Brown.

It's bad enough to rip someone off in the first place. But firefighters-that's the ultimate low blow. These brave men and women are true heroes.

These executives that apparently ripped of the firefighters shouldn't expect to be rescued from a fire anytime soon.

Or at least I wouldn't if I were a fireman.

[hungry1968-15]

You have posted links to a bunch of left-wing nut job websites trying to make EXCUSES...but you haven't produced any facts.

I don't need links to produce FACTS, Hungry, the facts are right out there big as life to anybody to see...all you need to do is the same research I did to find the FACTS.
Posted by IThoughtItWasFunnyAgin at 7:53 AM : Jun 13, 2009






HILARIOUS!!!!

You NOW consider the website:

http://www.federalreserve.gov/dcca/cra/

to be a "left-wing nut job website"?





ROFLMAO!!!!

[hungry1968-15]

No, what's hilarious is that you've tossed up a bunch of EXCUSES and absolutely NO FACTS!
Posted by IThoughtItWasFunnyAgin at 7:37 AM : Jun 13, 2009





I'm STILL waiting for a link, ANY LINK, from you proving your nonsense to be true.

I've posted several, you've posted NONE. So go ahead, post away.

[mainermike]

This is AS I SEE IT, by Mike "Mainer Mike" Brown.

That's all we need is for our brave firefighters to get ripped off.

Firefighters are true heroes, because they risk their lives to save others, the true defintion of a hero or heroine.

A hero isn't some baseball player that won the Cy Young Award, or an NBA player who led his team to a championship.

These firefighters have my respect, and I hate to see them get ripped off.

That's AS I SEE IT. I'm Mike "Mainer Mike" Brown.

[hungry1968-15]

You still don't have any FACTS, Hungry!

It was Clinton who went to congress and insisted on the de-regulation bill because he'd let Citibank and Traverls merge and it was against the law, it was Clinton who insisted the CRA be in it that was IN FACT giving loans to people whose qualification was breathing, it was Cllinton who signed the bill into law. It was Clinton employees who cooked their books trying to cover up all the bad loans they had guaranteed....

Those are FACTS, Hungry, no amount of EXCUSES you can toss up like like limp day old salad can dispute them.
Posted by IThoughtItWasFunnyAgin at 7:26 AM : Jun 13, 2009






So let me get this straight: You believe that Clinton went to the republican led congress and senate, and DEMANDED that Phil Gramm create the deregulation bill, all while they were trying to impeach him and witch hunting him at every turn?

And even though they opposed EVERY SINGLE thing that Clinton did, said, or stood for, they caved in and created the bill that Clinton allegedly DEMANDED that they write, AND they overwhelmingly voted for it, making it veto proof?

And even though I've provided you with several links to sources, INCLUDING the one to the federal reserve itself, you can't provide ANY links whatsoever to prove your nonsense?

Yeah, those are some brilliant debating skills you possess lady. (Sarcasm.)

[hungry1968-15]

And WHO debunked them? YOU? I'll swun....don't think it's been dubunked by anybody sir.

The facts are right there...CLINTON insisted on the de-regulation bill, and CLINTON signed it into law, and it was his appointees that faked their books to look like they were following regulations when they weren't....

You got any FACTS, Hungry?
Posted by IThoughtItWasFunnyAgin at 7:03 AM : Jun 13, 2009





One - the alleged "deregulation bill" was VETO PROOF. Whether Clinton wanted to sign it or not, it was LAW. The REPUBLICANS that drafted the law, sweetened it enough that the democrats all jumped on board.



Two - we've been through the whole CRA thing about 20 times, and the law itself DOES NOT force ANY banks to make loans, that it deems unacceptable. The government does not, nor did it ever have the power to force any bank to do anything it didn't want to do:

FROM THE CRA LAW ITSELF:

http://www.federalreserve.gov/dcca/cra/

"The law also does not require institutions to make high-risk loans that may bring losses to the institution; instead it emphasizes that an institution's CRA activities should be undertaken ******in a safe and sound manner*******."

"The Act requires the appropriate federal financial supervisory agencies to ******encourage****** regulated financial institutions to meet the credit needs of the local communities in which they are chartered, *****consistent with safe and sound operation*****."




(Asterisks added by me for emphasis.)

I see NOTHING that resembles a requirement in the law, to give loans to people that COULD NOT afford to pay them back. Do you?

Please search through it yourself, and post the section that does.





Three: the banks were so happy to get as many mortgages on their books, they paid their brokers on how many mortgages were written, rather than a flat salary. This caused the brokers to make loans to EVERYONE - including dogs and cats - and many of the loan applications were altered and doctored to make it look like the applicants made a LOT MORE money than they really did.



Really, it's all very well documented. There's NO REASON for your continued ignorance.

http://www.cbsnews.com/stories/2008/01/25/60minutes/main3752515.shtml

http://www.cnbc.com/id/28892719

[WayAround]

Well, CBS didn't post the story about the first swine flu vacinne announced ONE DAY AFTER the World Health Organization declared a swine flu pandemic [gee, what a coincidence], and of course, they haven't published anything related to the following story (from Fox News):

Six Flags Amusement Park Company Declares Bankruptcy

[Would you like to bet that the toxic assets go to the shareholders and the good assets go to a foreign knight in white armor?]

[hungry1968-15]

Well, considering it was Clinton that went to Congress and INSISTED on the de-regulation bill to cover his arse for letting CitiBank and Travelers merge when it was against the law.....your facts don't quite match up to reality...especially considering that it was CLINTON that signed the bill into law and left the little skrewbie piece in it called the CRA that let people qualify for home loans on the qualification that they were breathing!

What happened was that the republicans trusted the democrats to install people in their appointed offices to make sure that they weren't cratering the market...but instead Clinton appointed Frank Raines and the rest is history...
Posted by IThoughtItWasFunnyAgin at 6:52 AM : Jun 13, 2009






All of your alleged myths, have been debunked time and time and time again.

Your refusal to accept the facts, and your reliance on right wing propaganda, is YOUR problem, and no one else's.

[zonkzilla]

Maybe they can get their money back from AIG's 20 million dollar a year sponsorship of the foreign soccer team that contracted to pay a player the highest amount in history and the soccer team is owned by a US Texas billionaire?
AIG-Texas-BIllionaire-Highest paid athelete-Bailout money, if you connect the dots it is too much of a coincidence I would think.

[antoniof123]

For all you idiots and morons out there. Warren Buffet has been saying this about the CDS's from when we the American people were tricked into beliveing that Senator (America is a nation of whinners) Graham wrote a law that we Americans though was great.

Just goes to show you how we Americans were tricked. Don't try to put the blame on someone like Clinton or any one else the blame is ours we though it was the best thing scense slice bread.

Looks like we were wrong for trusting big business because like it or not they were the ones that helped to write thes laws. Remember this when you hold all things constant it will fall to the lowest common denominator that means the crookedest one will win.

[hungry1968-15]

Tanberet, you give whole new perspective and meaning to the term ignorant.

The problems of the general economy stem from the CLINTON administration's forcing the banks to make substandard loans to low income homebuyers who couldn't afford it. These inferior loans were then repackaged and moved throughout the financial community in order to make quick profits.

Posted by daveevad1 at 5:53 AM : Jun 13, 2009





You're pretty quick to call someone else ignorant, while putting your own on display for all to see.

NO ONE forced any banks to give loans to anyone - poor, rich, or somewhere in between.

Maybe you should turn off the Fox News and try posting again, with actual facts the next time around.

[daveevad1]

Tanberet, you give whole new perspective and meaning to the term ignorant.

The problems of the general economy stem from the CLINTON administration's forcing the banks to make substandard loans to low income homebuyers who couldn't afford it. These inferior loans were then repackaged and moved throughout the financial community in order to make quick profits. The collapse of this house of cards was not the primary cause of GM's problem.

GM is on the ropes because of a long history of producing substandard product, and forcing the American public to accept the "bigger is better" philosophy by refusing to build reliable and practical passenger car product for too many years, and encouraging customers to buy Suburbans for single passenger commuting. The Europeans and Japanese have a more realistic approach and offer high quality small car product (who ever looks down their nose at a BMW 325?)

[formrusmcsgt]

Sources say auditors at PwC have told federal prosecutors that they were repeatedly denied access to key information and employees by senior AIG executives.
----
Then whoever made the decision to leave the funds with AIG was an idiot.

[hungry1968-15]

They're trying to burn the people that were on the plane that landed in the Hudson River too.

http://www.nytimes.com/2009/06/12/business/12aig.html




Obama doesn't need to overhaul "health" insurance companies. ALL forms of insurance need to be overhauled - health, homeowners, auto, etc, etc - so that they are FORCED to pay on the claims, that they accepted the premiums for, and promised to cover.

[johninpennsyl]

When you let thieves hold your money-its only a matter of time till its gone.
Look at Social Security.