AIG CEO Liddy Appears Before Congress

May 13, 2009 12:00:00 AM PDT
One of the biggest companies to fail during the recession has been A.I.G. As a result it has received billions in government bailout money. The head of the insurance giant A.I.G. told congress Wednesday his troubled company, for now, does not need another government bailout. "We will do everything we can to not require additional federal money" said A.I.G. CEO Edward Liddy.

A.I.G. has received more than $180-billion dollars in taxpayer funding, but Liddy thinks his company is stabilizing and it won't need any more government cash. "I want to assure you that the people at A.I.G. are working as hard as we can to continue to serve our policyholders, customers and taxpayers."

While Liddy was in Washington for the hearing, new information has come out about those infamous bonuses the company paid out employees. The Washington Post reported that officials at the New York Federal Reserve received details about the bonuses more than five months before the news became public, sparking outrage across the country.

Treasury Secretary Tim Geithner was the head of the New York fed at the time, but the paper reports his name is not among the officials who apparently knew about the bonuses.

Though Libby believes things are improving at the insurance company, he cautioned A.I.G. is not out of the woods yet. "How long the plan will ultimately take will very much depend on how quickly and how strongly the global economy recovers."

One other note on bailout money: The Obama administration said it will use the bailout money that has been repaid by large banks to support smaller ones. The administration defines small banks as those with total assets under $500-million dollars.

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