WASHINGTON (AP) - He inherited the bonus plan when the government asked him to take over the company last fall and he's not getting any of it. But AIG chief Edward Libby will be the one taking the heat for it when he testifies on Capitol Hill later this morning.
Over the weekend, Liddy wrote to Treasury Secretary Timothy Geithner that he found the more than $200 million in bonus payments to be "distasteful." Nevertheless, the payments went out in an effort to keep employees from fleeing AIG's troubled financial products division. The bonuses range from $1,000 to nearly $6.5 million.
But with the insurance giant having received $170 billion in government aid to keep from going under, both Congress and the Obama administration are looking for ways to reclaim the money. Geithner says he's discussing the matter with the Justice Department, while the Senate Finance Committee's chairman and ranking Republican have proposed heavily taxing both companies and individuals for the bonuses.