Former New York Governor Spitzer Speaks Out On Aig

03.23.09 | FL News Team

Former New York Governor Eliot Spitzer is speaking out about American International Group and the economy. In his first interview since resigning as governor last year, Spitzer told CNN's "GPS" said the Securities and Exchange commission and other entities did not pursue the problems as aggressively as they should have. He said the SEC had the people, power and money but not the will.

Spitzer prosecuted the company while serving as New York's attorney general and said AIG had been essentially cooking the books for some time. He said the company's financial products division had been structured to create an illusion of financial strength that did not exist.

Spitzer said President Obama should call the CEOs of bailed out companies and tell them it is not possible to pay large retention and other bonuses because the money for that just does not exist.