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. Liddy is expected to testify later in the day.
"Because of this, and because of certain legal obligations, AIG has recently made a set of compensation payments, some of which I find distasteful," Liddy added.
The committee is set to hear testimony from Liddy and a number of government officials and insurance experts. Liddy, who took his job in September after the government stepped in, will face tough questions about the company's controversial bonuses and bailout.
In light of this developing story, here's my question to you:-
What do you think about the AIG bonuses?
Please leave your comments and answers.
Cara Mengobati Kanker Payudara Dengan Buah
4 years ago
Posts
If I may use an analogy, the banks are like a kid with a $20 Mom gave him to go to the store for one thing and to bring back the change...in this case the kid pocketed the money. Unfornately the "ME" decade of the '70's doesn't seem to have a limit. Obama put earmarks on the money and said what it was for, and it was for lending to the public not lining their own pockets. Its so easy, lend the money, make it back and then some with a fair interest rate...guess greed is only good for the greedy. I'd demand they give back any govt funds and disqualify AIG from any further bailout money.
Hi Clubmerc,
Thanks for that comment. Yes, I totally agree with you. The government should make AIG pay back the bailout money with interest and there should not be any bail-outs in the future. They should also tax the bonuses they offered to their employees.