AIG CEO appeared in front of furious lawmakers on Capitol Hill yesterday to shed some light on over $165M bonus awarded to his employees - many of them in AIG's financial products unit. That's the very same department blamed for plunging AIG into the financial turmoil that eventually led the government to lend and invest about $170 billion in the company.
In defending his decision foregoing the bonus payments, CEO Liddy said that AIG needs these employees to continue working to unwind the company's exposure to about $1.6 trillion in derivatives.
"I know $165 million is a very large number," Liddy said. "In the context of $1.6 trillion and the money already invested in us, we thought that was a good trade."
I think we should invite CEO Liddy to explain such "a good trade" in a simple way that our children and grand children can understand. After all, we're counting on him to turn AIG around and hopefully pay the money back to them.
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Federal Reserve officials knew for months about bonuses at American International Group but failed to tell the Obama administration.
ReplyDeleteAIG's executives should follow the recommendations of a Rebulican Senator to either come out and apologize to the public, bow and say "I am sorry." or commit suicide.