Wednesday, March 18, 2009
AIG Chairman and CEO Edward Liddy testifies before the House Financial Services Committee this morning, during which time one topic of discussion is likely to be the $165 million in bonuses awarded to executives in the division that helped bring global financial markets to their knees and, in the process, made the world's largest insurance company one giant government money pit.
The Wall Street Journal filed this report on the proceedings:
House Financial Services Chairman Barney Frank (D., Mass.) said he would ask AIG Chairman and CEO Edward Liddy for the names of bonus recipients. If the company doesn't provide those names, he said, Congress will formally subpoena them from the company.The hearings (now in progress) are not likely to be a friendly affair.
"We also will be asking Mr. Liddy to give us the names of the recipients," Rep. Frank said at a hearing. "If [he] declines to give us the names, then I will convene the committee and have a vote to subpoena the names."
An earlier story in the Journal carried the graphic below that has been enhanced for your viewing pleasure.
And a short excerpt:
The Obama administration said Tuesday it would seek to recoup from American International Group Inc. the $165 million in bonuses paid to employees of the bailed-out insurance titan as it tried to contain a national furor over the payments.I wonder what the $6.4 million man's lawyer has advised him to do?
White House officials are looking to use an executive-pay provision inserted into the recently passed stimulus law. The administration has seized on language that would allow the Treasury secretary to claw back payments if they were "inconsistent with the purpose" of the Troubled Asset Relief Program or "otherwise contrary to public interest."