March 16th, 2009
10:12 AM ET
6 years ago

Congress to grill AIG executive

Liddy will be in the  hot seat on Capitol Hill later this week.
Liddy will be in the hot seat on Capitol Hill later this week.

WASHINGTON (CNNMoney.com) – Lawmakers outraged about the bailout of American International Group will get another forum Wednesday, when the company's CEO is set to go before a House panel probing the government's involvement in the embattled insurer.

Edward Liddy, the AIG chief executive, is sure to be grilled about $160 million in bonuses paid to senior employees last week.

AIG has received three bailout packages, totaling more than $170 billion, in large part because it had issued risky credit default swaps - a kind of insurance for bad loans made by banks and investment companies.

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Filed under: AIG • Congress
soundoff (100 Responses)
  1. Ajay Jain, Garland, TX, USA

    Now would you lay it at the doorstep of Henry Paulson or Tim Gaiethner that we are stuck with a wayward corporation with BILLIONS in TARP money and still giving bonuses!

    March 16, 2009 10:53 am at 10:53 am |
  2. Cromwell

    What's with these bonuses anyway?
    Do factory workers, earning $10 per hr. get a bonus?
    Do construction workers get a bonus?

    Why do these Mega-Corporations dole out bonuses to their top executives. Isn't their base salary enough incentive to perform their jobs?

    Congress should require Liddy to list the name of every executive receiving a bonus and how much they get and what their job is.

    March 16, 2009 10:54 am at 10:54 am |
  3. Nola

    I think that the executives at AIG should entertain compromising – they will forgo the bonuses at this time and when the company is financially stonger (repaided the $180B to the government) they will be paid their outstanding bonuses. But, of course this idea is to simple and these (Birds) have no sense of how to avoid bad feelings for the everyday person.

    March 16, 2009 10:55 am at 10:55 am |
  4. RJN

    If AIG didn't have money to operate how would they have paid out the bonuses??

    March 16, 2009 10:56 am at 10:56 am |
  5. Virginia

    And grilling him will help how? They have already spent the money, so we can't get it back.

    March 16, 2009 11:00 am at 11:00 am |
  6. Deborah

    Too bad there isn't any LEADERSHIP in Washington.....

    Just say NO YOU CAN NOT USE TAXPAYER FUNDS TO AWARD FAILURE!

    March 16, 2009 11:00 am at 11:00 am |
  7. Larry from Apex, NC

    Yeah-grill him. OVER a hot grill. It is greedy pigs like this that have helped ruin our country. These types of porkers are ANTI-American. Cover him and his ilk with barbeque sauce and turn them on the spit!

    March 16, 2009 11:01 am at 11:01 am |
  8. Henry Miller, Cary, NC

    If AIG want to waste it's own money, and it's stockholders are dumb enough to put up with that, that's their business. But not with my money!

    March 16, 2009 11:05 am at 11:05 am |
  9. Joan

    It amazes me that Congress can insist that American auto makers and their unions renegotiate their union contracts as proof of their ability to restructure and become a viable going concern. So, blue collar workers were coerced into modifying their union contracts in order for the auto makers to continue to get loans from Congress.

    Yet, even though American taxpayers own about 80% of the stock in AIG, Congress is powerless to force a modification in AIG employee contracts.

    Hmmmm......

    NO MORE MONEY FOR AIG!!!!!!! And, fire every top executive at AIG. When they are unemployed, maybe they'll recognize that they now WORK FOR US!

    March 16, 2009 11:08 am at 11:08 am |
  10. jm for sc

    Rick,
    You and people who thinks like you should ask God to open your understanding. Then you will see that what President Obama has to do is fix an economy that was in ruins long before he took office. He can not attempt to fix the economy without spending money.

    There were bailouts after bailouts before Obama's time. The difference is, each bailout is "Headline news" now. This is only to make the current administration look bad.

    Bush had eight years to screw up the economy and it will take Obama at least a year or so to fix it. It amazes me how people are expecting him to fix the economy in less than six months.

    Ignorance has really taken over these days.

    March 16, 2009 11:08 am at 11:08 am |
  11. NotNowMooky

    AIG may be contractually obligated to offer a bonus to executives. But the executives DO NOT HAVE TO ACCEPT the money.

    I'd like to see the names of those who got bonus money and who, of them, refused the money or will give it back.

    DON'T TAKE THE BONUS

    March 16, 2009 11:09 am at 11:09 am |
  12. Linda iowa

    More evidence of why the 350 billion TARP funds should be divided among the American people. No watchdogs needed. We would do what the crooks can not do. Fix our economy. Do the math, 350 billion divided by how many households? Stand back and watch us fix it ourselves. We would pay our mortgages, buy new cars, pay off other debt. What a retail boost that would trickle up. That is how you fix things from the bottom up as promised. Top down does not work. Put the power back in the hands of the people. Of course we have always had the power. Apathy got us here. Knowing issues and voting with the brain and not emotion. Do our own research not letting the media do it for us. Media are the best spinners of all. Putting in our own term limits. They sure are not going to vote for them. We have the government that the squeaky wheel gave us. Time for all the people to care about our government. We are the watchdog for our elected representation.

    March 16, 2009 11:10 am at 11:10 am |
  13. Don in Albuquerque

    This guy and all his little buddies need to be given cardboard boxes this morning to gather their belongings, and escorted by security to the curb, with a never come back order!

    March 16, 2009 11:12 am at 11:12 am |
  14. Peter E

    This guy needs to open his eyes and see what's going on around him. With the economy being hard on the average taxpayer already, can he really tell us with a straight face that our taxpayer money should go to multi-millionaires' bonuses?

    March 16, 2009 11:13 am at 11:13 am |
  15. Mary

    I'm sorry, when I or my company performs below expectations from a financial perspecitive, bonuses are NOT issued, contract or no contract!

    March 16, 2009 11:13 am at 11:13 am |
  16. WYO

    Do they not already have a bonus? Like a job?

    March 16, 2009 11:14 am at 11:14 am |
  17. Beverly, NYC

    A tongue lashing and phony outrage by congress won't get the $ back. Instead of wasting time on C-SPAN. Let see a swarm of IRS and FBI agents entering their buildings on Wall street and perp walk the bonus babies who cost 61 million in losses out the front door, no raincoats over their heads. If we can kidnap foreigners who threaten the US, we should be able to do the same to the domestic, economic terrorist at companies like AIG because they are no better. It will send a quick message to the other fat cats to get their house in order. From here on in if you have to be paid a bonus for failure let it be in that companies stock, what better incentive to make the company profitable.

    March 16, 2009 11:14 am at 11:14 am |
  18. Mike- Kansas City MO

    I as a partial owner (a taxpayer) of AIG would like to see these contracts.
    I understand the obligation, but when these same individual's are responsible for the fiasco that AIG created they should not be entitled to one penny let alone millions of dollars.
    They should refuse to take the money or at least defer it until AIG has paid back all the TARP money it has received.

    The American taxpayers know BS when it smells it, and this stinks to high-heaven!

    March 16, 2009 11:14 am at 11:14 am |
  19. al in memphis

    How do you get a bonus when the company is broke? The everyday taxpayer gets an unemployment check that they pre-paid for when they were working.
    Bonuses for bad peformance must be the "hand off business" government policy some have been advocating for the past few years.

    March 16, 2009 11:15 am at 11:15 am |
  20. Kurt C.

    Physician, heal thyself. Congress shows its hypocrisy by grilling these guys about misusing millions while Congress misuses billions.

    March 16, 2009 11:16 am at 11:16 am |
  21. william . Oregon

    AIG your all a bunch of thieves. Not only should you be without a job you should be in JAIL

    Fedup in Oregon

    March 16, 2009 11:17 am at 11:17 am |
  22. Peter E

    Let the invisible hand of the market work. Take all government out of business. Let them go under so that new, competitive, inovative, competent companies can take their place! That will create more and more stable jobs than what these people are losing for us.

    March 16, 2009 11:20 am at 11:20 am |
  23. Bill

    LET AIG FAIL

    AND

    SINK INTO DEEP OCEAN.

    AIG IS A COLLECTION OF MONEY SWINDLERS, EMBEZZLERS AND MONEY GUZZLERS.

    March 16, 2009 11:20 am at 11:20 am |
  24. GeorgiaE

    People are struggling and catching hell. AIG is awarding bonuses.

    No company doing business in the USA should be so strong and powerful that it could bring down the entire financial and economic systems of the USA. I am not a taxpayer of AIG but a taxpayer of the USA. My tax dollars are going to AIG and I am furious that this is happening.......Why should my tax dollars go to rich men in suits??

    FIX THIS NOW !!

    March 16, 2009 11:21 am at 11:21 am |
  25. Glen

    Will they be investigating Airline Pelosi or the other Fat Cats who sponge off the American Tax Payer in Congress like the House Financial Services Committee Chairman Barney Franks and his committee of no doers who protected Freddie Mac and Fannie Mae. Do they qualify for treason? Deliberately undermining the American economy?

    March 16, 2009 11:22 am at 11:22 am |
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