AIG executives are a virtual legacy on Cramer’s Wall of Shame. Former Chairman Robert Willumstad was so honored, as was former CEO Martin Sullivan. Well, on Monday the present boss, CEO Ed Liddy, was inducted for similar underperformance.
Cramer didn’t want to have to do it. When Liddy joined the company, Cramer gave the CEO the benefit of the doubt. But you only have to look at the latest AIG headline – that the very division whose actions hurt the company the most somehow earned bonuses – to see how Liddy has performed.
That’s not Cramer’s biggest gripe, though. What really irks the Mad Money host is that AIG has never fully disclosed its exposure to credit default swaps. At one point management put the figure at just $50 million. But now we realize that figure’s much closer to $105 billion. Was the company lying? And if so, how come no one is being held accountable? Rooting out these problems should have been Liddy’s first concern. The taxpayers, AIG’s true owners at this point, have the right to know where the money went.
And to think the company got mad when Cramer called them out on it. Guess he was right.
The bottom line, though, is that while paying out bonuses at this point is shameful, we can’t ignore AIG’s lack of disclosure. That, Cramer said, is the real outrage.
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