Congress had the president of AIG before a committee to grill him about the AIG bonuses. Liddy, the AIG president, is a new broom brought in to clean house after AIG started taking federal bailouts. He had retired from running AllState, and was brought in to run AIG. Liddy is working for $1 a year.
Liddy explained that the bonus's were a done deal before he got there. The bonuses were to retain some key individuals who were unwinding AIG's stupendous portfolio of credit default swaps and other dodgy paper. Liddy stated that they had reduced AIG's exposure by $1 trillion, and had another $1.6 trillion to go.
Liddy came off pretty well. He sounded sincere and serious and wasn't evasive.
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