Posted on 03/17/2009 3:32:28 AM PDT by Born Conservative
The head of financially troubled American International Group, the insurance firm that most benefited from the federal bailout while still paying hefty bonuses to executives, will testify before U.S. Rep. Paul E. Kanjorski’s congressional panel Wednesday.
Chief Executive Officer Edward M. Liddy is sure to field questions from members of the Capital Markets, Insurance and Government-Sponsored Enterprises Subcommittee about millions of dollars in bonuses. Mr. Kanjorski, D-11, of Nanticoke, chairman of the subcommittee, said Monday he warned Mr. Liddy against paying the bonuses in a conversation in January.
Mr. Kanjorski said bonuses could anger members of Congress who might eventually be asked to provide more money to rescue AIG and other ailing financial firms. Mr. Liddy argued the company was contractually obligated to pay the bonuses.
“This is going to poison the well (in Congress),” Mr. Kanjorski said he told Mr. Liddy.
AIG has received $170 billion in bailout funding, which has given the government almost 80 percent ownership.
Mr. Kanjorski said the hearing also will focus on the company’s future.
“It’ll give everybody a little more certainty as to what the risks are, what the long-term prognostications are for the company and whether or not we have a need for further funding,” Mr. Kanjorski said.
AIG is a linchpin of the global economy because it insures loans and other investments held by major banks worldwide. When many of those loans and investments began to go bad last year, AIG didn’t have enough money to cover the losses, so the federal government intervened.
Mr. Kanjorski contends AIG couldn’t be allowed to fail because its failure would have meant major losses or bank failures. Then many Americans would lose large parts of their savings, and loans would be harder to come by, making it more difficult for businesses to borrow to finance operations or expand.
“If AIG went down, they were going to take down the whole world economy,” said John Sumansky, Ph.D., of Misericordia University.
Over the weekend, the company released a list of banks whose losses were covered with AIG’s bailout money and a separate list of states that received money. Pennsylvania received $150 million between Sept. 16 and Dec. 31, according to the company. State officials could not immediately explain what obligations the money covered. State Insurance Commissioner Joel Ario is among those set to testify at the hearing.
Government money is "free money"
Kanjorski sneaking through service entrance to fundraiser held by Rangel
I do know it's no where near what Congress steals in Earmarks without batting an eye and a lying President who said he is going line by line on the budget.
He needs to ask his Treasury Sec. what kind of deal he setup with AIG
Behind the scenes, Mr. Geithner was the point person for weeks of sleep-deprived Bailout Weekends. It was Mr. Geithner, not Mr. Paulson, for example, who put together the original rescue plan for the American International Group.
Kanjorski has the balls to do this?
are you kidding me?
Kanjorski has flat out admitted on air that the “Bailout” never had anything to do with freeing up credit......We have been lied to and scammed, and HE is part of it.
DC has turned into a propaganda MECCA.....
These people NEED to understand how close we are to Replacing everyone in DC....
Wonder why wonder boy Joe Cassano isn’t summoned to the Hill?
This won’t be resolved in my mind until he has his name tattooed on his back and is lover boy of cell block C at Folsom.
Why bother...he will just get up and lie like Pandit did...he told congress he made 1 million last year. He made 8 million. These guys are a bunch of crooks and should be forced to step down. You will never turn these companies around with the same guys in charge...they created a culture of rewarding those who do not deserve it and outright theft.
Ping
Incestuous socialists and their “for public consumption” investigations. Very clever...these con-men/criminals/co-conspirators.
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