Himes Says Government Should Go After All AIG Bonuses
AIGSIDEBAR
Norwalk Hour
Tait Militana
Boston University Washington News Service
03/18/09
WASHINGTON – American International Group’s request that employees voluntarily give back at least half of the $165 million in bonuses paid to them last week is not good enough, said U.S. Rep. Jim Himes, D-4, following testimony by the company’s chief executive at the Capitol Wednesday.
Edward Liddy, AIG’s embattled CEO, testified before the House Committee on Financial Services, of which Himes is a member. He said though the bonuses may have been “distasteful,” they were necessary to keep top employees onboard.
“I think he made a bad decision,” Himes said. “If AIG can’t figure out a way to get the money back, the government will.”
Himes said he recognized that the bonus contracts were developed by Liddy’s predecessors and applauded his willingness to testify. However, Himes said, government intervention, such as imposing a heavy tax on the bonus payments or deducting the amount from future bailout funds for AIG, should be a last resort. He said he would like to see the company hire lawyers to fight the contracts or persuade the employees that they have a moral obligation not to take the money.
“Given the severity of [the economic crisis], we just can’t tolerate these payments,” Himes said.
In a tense moment at the hearing, Rep. Barney Frank, D-Mass., the committee chairman, called on the panel to subpoena the names of the employees that received bonuses. Because of death threats to several AIG employees, Himes said, the request represents a security concern, though the public has a right to know.
Frank and Liddy pledged to continue negotiations.
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