AIG Employee Tells Liddy: You Betrayed Us

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»

(AP) - Outraged lawmakers threatened today to impose new taxes to recoup at least some of the $165 million in bonuses that insurance giant AIG awarded executives and traders after getting billions in federal bailout money. "What is the highest excise tax we can impose that will stand up in court?" Senate Finance Committee Chairman Max Baucus asked. "Let's find out what it is." 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»

NY takes tough action to limit payouts to curNewser Newsroom 1.15.0rent, former bigwigs

(NEWSER) - AIG will suspend bonus payments to its executives after getting pressure from New York Attorney General Andrew Cuomo. The ailing insurance firm, which recently got billions of dollars in loans from the Federal Reserve, also will stop $19 million in payments to a former CEO fired in June. Cuomo said it made no sense to reward management under the circumstances. More»

Matt Taibbi says bankers are still overpaid

(NEWSER) - Matt Taibbi was incredulous when he read a recent New York piece in which Wall Street denizens whined that Dodd-Frank was limiting their bonuses. "I watch what I spend," one banker lamented, "but my girlfriend likes to eat good food," which adds up fast. "Quelle horreur!" Taibbi quips in Rolling Stone , before shredding the argument. Actually, bank compensation is falling because of the European debt crisis. Bankers he knows are saying things like, "If the ECB doesn't come up with a Greek bailout package, I'm going to have to sell my children for dog food." And at some banks (like Goldman Sachs), bonuses are actually up relative to earnings. More»