Key House Democrat: AIG "Trying to Play the American People for Fools"

[IDemo]

March 15, 2009 11:24 AM

ABC News' Matt Jaffe reports:

Rep. Elijah Cummings, D-Maryland, a member of the Joint Economic Committee, today renewed his calls for AIG CEO Edward Liddy to resign after the company said it will move forward with paying out $121 million in bonuses for senior executives.

"For months, I have been calling on Edward Liddy to step down from his position leading AIG, and I loudly and clearly renew that call today," Cummings said Sunday in a paper statement. "Mr. Liddy has repeatedly taken billions of hard-earned tax dollars from the American people—many of whom have lost their homes, their savings, and their jobs—and then slapped those people in the face with that very money. Mr. Liddy continues to display reckless and irresponsible behavior at the helm of this company, and we simply cannot afford to accept it any longer."

Cummings first called for Liddy to resign in November. Today the Maryland Democrat accused AIG of "trying to play the American people for fools."

"AIG has been trying to play the American people for fools by giving nearly $1 billion in bonuses by the name of ‘retention payments,’—including to employees at the FP unit whose reckless behavior drove the company into the ground," Cummings stated. "Any credibility that could have been given to Mr. Liddy’s argument that these payments are necessary to retain top talent was completely destroyed in last month’s 10-K filing when AIG itself disclosed that nearly $60 million of those retention payments are going to employees who will be terminated."

http://blogs.abcnews.com/politicalpunch/2009/03/key-house-democ.html

[GoesTo11]

1. Trying? n/t

[spartan61]

2. I'm still trying to figure out why AIG wants so badly to

"retain" those fools who brought this company to it's knees. I am so friggen disgusted with these large banks who have their hands out for our taxpayer money while we do everything in our power to just hold on.

[napi21]

3. I HATE that these greedy bt's are taking the money, but I also understand

our gov't doesn't want to get into the bysiness of breaking contracts.

That's also part of the probem they're having with the foreclosures. Many of those mtgs are held by private investors, and most of them don't want to talk about restructuring or modifications. I watched several hearings on cspan where bankers were beinbg questioned. Some of the SMART congress critters were asjing about the liability of breaking contracts.

Believe me, if these guys are willing to demand the money guaranteed in their contracts, they're sure willing to sue whoever would block their fulfill them!

[marketcrazy1]

5. RE: breaking contracts

what about mortgage modifications for borrowers who have NOT defaulted?, principle will be written down, rates lowered and terms extended. these are contracts that are currently performing but will soon be broken. I know.... THATS different!! I have a feeling investors in the bonds who`s underlying mortgages will be affected and who`s value will be reduced will argue that contract law is being violated...

[napi21]

8. It's really the same thing. Any mortgages held by invesstors have to agree to a write down or redo

of the loan. These greedy guys refused to agree to accept any changes to their contract. I suspect, since I heard they are all gone now, they viewed this as their last piece of candy.

[aquart]

4. Yuh think?

I want the company gutted. I want the top executives flayed.

[GiveMeFreedom]

9. Here, you can borrow this one

and hitting them in the groin area with this tool scores extra points, so I am told! Let the games begin!!!

[biopowertoday]

6. So, was the WH played for fools also? And will they continue

to pass out tax payer $$ to them?
We shall see.

[neverforget]

7. I'd say they succeeded beyond their wildest expectations! Where else

could you fail so utterly and yet get rewarded for it? If I fail, I get my ass reamed or I get fired. AIG gets a fucking bonus. :argh: :nuke: :grr: