The Westport man who headed the money-losing financial unit of American International Group—the insurance company which paid millions in bonuses after a $170 billion government bailout that brought outrage this week from President Obama—donated $4,800 to Obama’s presidential campaign, according to federal campaign records.
Joseph J. Cassano, 54, who has been a registered voter in Westport since 1995, donated $2,300 to Obama for America on Jan. 10, 2008, and $2,500 to the Obama Victory Fund on July 24, 2008, Federal Election Commission records show.
He listed his home in Westport’s Compo Beach area as his residence in making both donations. Cassano is one of at least four present or former AIG executives from the financial group who listed Westport as their residence in making 2008 campaign donations. It is not known if any of them are bonus recipients.
President Obama said Monday he would “pursue every single legal avenue to block” $165 million in bonuses to AIG employees who were in part responsible for the insurance giant’s near collapse.
The company paid the bonuses, including more than $1 million each to 73 people, to almost all of the employees in the financial products unit, The New York Times reported today.
For eight years, Cassano headed the London office of AIG’s Financial Products Group which AIG has acknowledged was ground zero for $440 billion in losses. Its only other office is in Wilton.
The unit’s small group of traders risked nearly half a trillion dollars to insure U.S. mortgages and other debt using complex financial products called credit default swaps, according to recent congressional testimony.
News reports have said that Cassano earned $280 million during his tenure with AIG and $34 million in bonuses. He left the company in March 2008 with a $1 million a month consulting contract which has since ended.
The New York Daily News said Tuesday that Cassano was “a Brooklyn cop’s kid made good who went oh so bad.” It said he jetted between his house in Westport and an $8 million townhouse in London that AIG provided while he headed the unit there.
The President’s “outrage” should be substantiated by his returning this money to Mr Cassano, The President’s outrage denies the fact that he knew that these bonuses were being paid – at least 24 hours before they were paid
What is the point of this article, is it intended to ostracize a local resident? The current Administration can’t account for a great deal of the TARP money…getting to the root cause of the issue is what will solve the problem, not lashing out at the citizens that the Government should be serving.
Mr. Cassano wasn’t just your ordinary “local resident”, he was at ground zero of the AIG collapse. Mine and your tax dollars, to the tune of $180,000,000,000., were given to AIG because of it.
If Bernie Madoff lived in Westport, should Westportnow or any other local news outlet not be allowed to mention it?
Here’s a good link from the NYT: http://www.nytimes.com/2008/09/28/business/28melt.html
Before one questions the point of this article and concern over ostracizing a local resident, it might be wise to click on the Daily News link above and read a few more of the details surrounding Mr. Cassano’s escapades. Perhaps just “lashing out” is not enough. We will see where the lawsuits end up.
It certainly appears that some in the current administration knew that the bonus were going to be paid. I realize that there are many who will always come to the defense of this President regardless of what takes place, but I think it’s time to rethink the Treasury Secretary selection. I guess when you knowingly nominate a tax cheat, you don’t get the sharpest knife in the drawer.
Bernie Madoff is a criminal. Mr. Cassano perhaps simply used poor business judgements, there is a difference.
The root cause is not AIG or Mr. Cassano failing at/or making poor business decisions. The real issue remains as a poor structure of these payments to these companies. This was added to the legislation:
iii) The prohibition required under clause (i) shall not be construed to prohibit any bonus payment required to be paid pursuant to a written employment contract executed on or before February 11, 2009, as such valid employment contracts are determined by the Secretary or the designee of the Secretary.
Then they want to cry foul?
Come on.
You are right, that clause was added to the legislation by Chris Dodd who is now one of those crying foul. Poor Chris, hopefully his days are numbered.
This story is about a man who was running the financial group which was “ground zero” for $440 billion in losses while he continued assuring investors that his unit could not lose. If you want to look at that as just poor business judgement, that’s fine. After all, that’s what Barney Frank was telling the public while Fanny and Freddie were collapsing. I’m a free market individual, but I like to feel I’m dealing with honest folk, which in this case is questionable.
Speaking of Senator Dodd; it seems he was for it before he was against it before he denied it then finally admitting it. My 5 year old son has more integrity when I ask him if he did something.
This is why we and so-called journalist should be skeptical and question our politicians who use our tax money for their benefit and personal gain, regardless of Democrat or Republican, and not act as cheerleaders and publicists for them.
From CNN:
Senate Banking committee Chairman Christopher Dodd told CNN
Another reason NOT to vote for this man Dodd who lacks any integrity, sense of remorse for any of the despicable actions he has been guilty of with this financial mess
Don’t forget he, as the head of the Senate Banking Committe, did not realize he was being given favorable treatrment by Countrywide Financial when he was given a 3% mortgage rate when the “ordInary people” were being charged 6%
Remember this when this arrogant man is up for re-election!!!