2nd UPDATE: AIG chief wants half of bonuses back

2nd UPDATE

Edward M. Liddy, the embattled chief of American International Group, is testifying before a House committee.  He says he’ll ask employees who received bonuses of more than $100,000 last week to “do the right thing” and give at least half the money back.

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UPDATE

The chairman and CEO of American International Group says the company made mistakes on a scale few could have imagined.

In prepared congressional testimony, Edward Liddy describes how AIG became overexposed to market risks.

The insurance giant AIG has been the largest recipient of federal rescue funds.

AIG has come under fire this week for $220 million in bonuses that just went out to executives.

That’s after the company has received $170 billion in bailout money.

The payout deals were cut early last year, long before Liddy was asked to take over the company.

Liddy himself describes the payments as “distasteful.“

He’s testifying this morning before a House Financial Services panel.

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Bailed-out insurance giant AIG and its million-dollar bonuses are under fire on Capitol Hill.

CEO Edward Liddy took over last year as it was being bailed out and works for only a dollar a year.

But that’s not sparing him from the anger of lawmakers who are looking for ways to get back the 165 million in bonuses already paid.
While AIG says the bonuses are written into contracts lawmakers are looking for ways to get the money back.

AIG should stand for arrogance, incompetence and greed,” said democratic Congressman Paul Hodes of New Hampshire.

Under fire on Capitol Hill bailed out insurance giant AIG and its million-dollar bonuses.

“It is morally reprehensible and fiscally irresponsible,” said Congresswoman Carolyn Maloney a democrat from New York.

Some lawmakers are angry about the contracts that guaranteed bonuses despite staggering losses.
While some want the bonuses back others demand to know whether AIG’s 170-billion dollar i-o-u will ever be repaid.
Edward Liddy the CEO of the embattled insurance giant says he’s not happy either.

In his prepared statement he told lawmakers he’s angry, too that AIG made mistakes before he took over last year and that AIG is on the road to recovery and paying back its debt to Uncle Sam.
Treasury Secretary Timothy Geithner is being called to Capitol Hill next week to explain why he didn’t fight harder to stop these bonuses.