WASHINGTON (CNNMoney.com) - Edward Liddy, chief executive of bailed out insurer American International Group, will tell Congress Wednesday that he found the company's controversial bonuses "distasteful," but necessary because of legal obligations and competition, according to a written copy of his testimony.
"We have to continue managing our business as a business - taking account of the cold realities of competition," Liddy will tell the House Financial Services subcommittee. The hearing is set to begin at 10 a.m.
"Because of this, and because of certain legal obligations, AIG has recently made a set of compensation payments, some of which I find distasteful," he added.
NEW YORK (CNNMoney.com) - A day after unveiling his new financial rescue plan, Treasury Secretary Tim Geithner again went before Congress to defend it.
Watch: Geithner grilled on bailout
Geithner's revised bailout was met with disappointment on Wall Street and with some lawmakers who thought Treasury's plan was lacking in details.
At a hearing held Wednesday by the Senate Budget Committee, senators pressed Geithner to give more specifics about Treasury's new bailout efforts.
"The market has made clear that certainty and stability are commodities of great demand; unfortunately, that is not what we received yesterday," said Sen. Jeff Sessions, R-Ala. "Secretary Geithner, you need to give a detailed plan in clear terms of how we are to proceed. You've had more than a month to work on the proposal, but what we've heard is an outline."
"I hope you can use the hearing today to put some meat on the bones," Sessions added.
NEW YORK (CNNMoney.com) - In a final push before the House votes on an economic stimulus package, President Obama said Wednesday that the country needs immediate action to solve rampant job loss.
Obama spoke after meeting with a dozen CEOs including Sam Palmisano of IBM and Dave Cote of Honeywell.
"The businesses that are shedding jobs to stay afloat ... and all those who live in fear that theirs will be the next job cut - they need help now," Obama said from the White House. "They are looking to Washington for action - bold and swift."
NEW YORK (CNNMoney.com) - After a call for "bold and swift" action on the economy in his first moments as president on Tuesday, President Barack Obama got right to work, maneuvering to reach a bipartisan agreement on his sweeping economic recovery plan.
On Friday, Obama and Vice President Joe Biden met with Democratic and Republican congressional leadership to discuss his stimulus proposal, trying to sell both sides on a plan that includes both tax cuts and massive spending efforts.
The president offered more detail on his plan to restore economic growth. He said he'd take a three-pronged approach to recovery: stabilize the financial system, fix market regulation and pass the stimulus plan.
NEW YORK (CNNMoney.com) - President Barack Obama offered more detail on his plan to restore economic growth Friday, saying the economic stimulus program being debated in Congress is just one of at least three parts to his recovery plan.
In a meeting to discuss the stimulus proposal with Vice President Joe Biden and Democratic and Republican congressional leadership, Obama said America also needs an improved financial system stability program as well as financial market regulation reform.
"The recovery package that we're passing is only going to be one leg in, at least, a three-legged stool," said Obama. "We are also starting to put in place the kinds of reform elements – oversight, transparency, accountability – that's going to be required in order for the American people to have confidence in what we're doing."
NEW YORK (CNNMoney.com) - As lawmakers head into the second week of debate over President-elect Barack Obama's proposed economic stimulus plan, new details continue to shed light on what promises to be a sprawling and complex piece of legislation in American history.
Though many details are still lacking, the aim of the American Recovery and Reinvestment Plan is clear: rejuvenate the economy and create jobs by spending hundreds of billions of dollars on infrastructure, state budget relief, safety nets for the needy and tax cuts.
A recent analysis by Obama economic advisers Christina Romer and Jared Bernstein suggested that the proposed plan could save or create 3 million to 4 million jobs by the end of 2010.
NEW YORK (CNNMoney.com) - Many Americans will watch fireworks at home instead of hitting the road this July 4, according to a new poll released Wednesday, as record gasoline prices force people to make major changes in their daily lives.
According to a CNN/Opinion Research poll, 31% of Americans have canceled or shortened their planned holiday weekend vacation because of the recent increase in the price of gas.
"When consumers talk about their thinning wallets, high fuel expenses is the reason they would point to first," said Wachovia economist Tim Quinlan.
The average price of a gallon of gas rose to an all-time high above $4.09 a gallon Wednesday, according to a survey from motorist group AAA. Gas prices are now about 3% higher than last month and 38.5% higher than year-ago levels.