AIG Execs Face Fury of Angry Public

VP's resignation letter rips cowardly CEO, grandstanding pols

(NEWSER) - Though he says he’s blameless for the mess that brought down AIG, and worked 14-hour days at $1 a year to help dismantle the insurer, executive Jake DeSantis feels “betrayed” by CEO Edward Liddy—and lets him know in a resignation letter published by the New York Times. He rips elected officials for “persecution,” and Liddy for not standing up to them, particularly over bonuses. More»

(NEWSER) - It’s time to put down the pitchforks, writes Steven Pearlstein in the Washington Post. Public outrage is getting so hot that it’s actually undermining government efforts to contain the financial crisis. Right now, the Treasury is desperately trying to lure private capital back into the so-called shadow banking system. But how eager will private equity be to invest if it thinks it will face “front page accusations, congressional inquiries and public outrage?” More»

Liddy says paying employees will help taxpayer in long run

(NEWSER) - AIG's $165 million bonus payout has produced "a palpable wave of anger," admits Edward Liddy, the insurance giant's government-appointed CEO. But in an op-ed for the Washington Post, Liddy says that paying employees now will prevent "undue risk" and help AIG wind down the most dangerous positions on its book. He adds that "had I been chief executive at the time, I would never have approved the retention contracts." More»

Keeping employees at AIG is paramount, says Sorkin

(NEWSER) - Everyone from President Obama down has been stung by the unfairness of AIG's planned $165 million in bonuses. But as Andrew Ross Sorkin writes in the New York Times, the best thing to do is shut up and pay. "As unpalatable as it seems," he writes, "taxpayers need to keep some of these brainiacs in their seats." More»

President instructs Geithner to use "every legal avenue" to reclaim funds

(NEWSER) - President Obama has asked Tim Geithner to use “every legal avenue” to prevent AIG from paying out $165 million in bonuses to top employees who had a hand in the company's near-collapse, the Wall Street Journal reports. "This isn't just a matter of dollars and cents. It's about our fundamental values," said Obama. More»