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Vincent Fumo’s Conviction and the AIG Bailout

How is the public to interpret the Fumo conviction? The jury said he sunk himself when he testified that all he was required to do as a state senator was show up and vote. Using taxpayer money to line his own pockets and heavy handing PECO for a shakedown for his own private charity. A politician for the people? Nope.  A politician for himself.

Compare  the mess at AIG. Edward Liddy, AIG’s CEO testified to a Congressional committee, and was questioned about why he thought AIG executives should get $165 million in bonus money funded by the taxpayer bailout. Liddy’s rationale for paying the bonuses is because of contractual arrangements with the executives that were in place before the bailout money was paid to AIG.

Liddy is the former CEO of Allstate (from 1995 to 1999, then Chairman of the Board until 2007) where he made over $350 million in salary and stock options, during which time he was behind a targeted plan to deny contractual payments to Allstate insureds.

Liddy’s goal at Allstate (which he succeeded in accomplishing) was to radically alter the approach  to the business of claims by not paying legitimate claims and making it too expensive for Allstate insureds to litigate their claims. The case that brought Allstate’s model to light has been litigated in New Mexico.

Liddy’s wealth includes a retirement package from Allstate worth over $70 million. Remember, he wants the AIG execs to get their taxpayer supplied bonuses.

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