House committee puts AIG CEO in the hot seat

AIG CEO Edward Liddy testified in front of lawmakers Wednesday as news continued to spread about the $165 million in bonuses the bailed-out insurance company paid its employees. The company's chief executive

News 12 Staff

Mar 18, 2009, 10:55 PM

Updated 5,598 days ago

Share:

AIG CEO Edward Liddy testified in front of lawmakers Wednesday as news continued to spread about the $165 million in bonuses the bailed-out insurance company paid its employees.
The company's chief executive officer tried to explain why millions of dollars in bonuses were paid out last week to employees of the fallen insurance company.
?Nobody knows better than I that we received generous amounts of government aid and we are aware that we must be good stewards of the funds that we have received,? Liddy said.
In his defense, Liddy pointed out the bonuses were negotiated before he joined the company late last year. He agreed they were in bad taste given the current economic climate, but that the company was legally obligated to pay them out.
Rep. Gary Ackerman (D-Manhasset) demanded more culpability from Liddy. He attacked AIG?s credit default swap program as patently dishonest.
?This is insurance without being insurance, because if they called it insurance, they would have to have money to pay you off,? Ackerman said to Liddy. ?But they don't have the money to pay you off, and they're calling it credit default swaps, because if they called it ?I Can't Believe It's Not Insurance,? maybe nobody would buy it.?
Residents that spoke to News 12 Long Island shared Ackerman?s outrage and agreed the bonus money should be returned.
Liddy told Congress Wednesday he has asked employees who received at least $100,000 in bonuses to give at least half of that money back. However, many lawmakers said they want to craft legislation to make sure they get the money back.
To see Rep. Ackerman's opening statements at the hearing, go to Channel 612 on your iO digital cable box and select iO Extra.


More from News 12
2:19
Officials: Shark spotted at Lido Beach and Jones Beach

Officials: Shark spotted at Lido Beach and Jones Beach

2:26
HEAT ALERT: Hot and humid weather continues before some storms finally bring relief to Long Island

HEAT ALERT: Hot and humid weather continues before some storms finally bring relief to Long Island

7:10
Trump picks Sen. JD Vance of Ohio, a once-fierce critic turned loyal ally, as his GOP running mate

Trump picks Sen. JD Vance of Ohio, a once-fierce critic turned loyal ally, as his GOP running mate

1:18
Long Islanders seek to stay safe from sun amid intense heat

Long Islanders seek to stay safe from sun amid intense heat

0:47
NY AG, NYCLU sue Nassau County over controversial law on transgender athletes

NY AG, NYCLU sue Nassau County over controversial law on transgender athletes

0:26
Christopher Carini, Hempstead councilman and veteran law enforcement officer, has died

Christopher Carini, Hempstead councilman and veteran law enforcement officer, has died

1:58
Video of suspect in DWI crash that killed 2 Roslyn teens shown in court

Video of suspect in DWI crash that killed 2 Roslyn teens shown in court

1:49
Huntington woman says house fire may have damaged artifacts she planned to display

Huntington woman says house fire may have damaged artifacts she planned to display

0:26
Cooling centers open in Hempstead and Riverhead amid excessive heat

Cooling centers open in Hempstead and Riverhead amid excessive heat

2:07
Dr. Sanjey Gupta offers health tips amid dangerous heat conditions

Dr. Sanjey Gupta offers health tips amid dangerous heat conditions

3:40
Long Island officials reflect on Trump assassination attempt and security concerns for future public events

Long Island officials reflect on Trump assassination attempt and security concerns for future public events

3:30
Trump heads to convention as authorities investigate motive, security in assassination attempt

Trump heads to convention as authorities investigate motive, security in assassination attempt

0:17
Police: Suspect wanted for fleeing scene of crash in Shirley

Police: Suspect wanted for fleeing scene of crash in Shirley

0:28
Police: 3 people injured following wrong-way crash in West Islip

Police: 3 people injured following wrong-way crash in West Islip

1:37
Family rallies for harsher penalties for drivers under the influence of marijuana following fatal incident

Family rallies for harsher penalties for drivers under the influence of marijuana following fatal incident

1:54
Reps. Lawler, Torres to introduce bill enhancing Secret Service protection for presidential candidates

Reps. Lawler, Torres to introduce bill enhancing Secret Service protection for presidential candidates

2:04
Nassau County heightens safety precautions for public events following Trump rally shooting

Nassau County heightens safety precautions for public events following Trump rally shooting

2:37
Security increased at Trump Tower following rally shooting

Security increased at Trump Tower following rally shooting

2:07
A look back at US political violence that changed history

A look back at US political violence that changed history