AIG CEO Defends Bonuses In House Hearing

Law360, New York (March 18, 2009, 12:00 AM EDT) -- Edward Liddy, CEO of troubled insurance giant American International Group Inc., told the U.S. House of Representatives that the company's controversial $165 million retention payments were necessary to keep the company from collapsing further under the weight of a “liquidity crisis.”

Members of the House Subcommittee on Capital Markets, Insurance and Government-Sponsored Enterprises grilled Liddy for details about bonus recipients, credit default swaps, bailout payments to foreign counterparties and AIG's exit strategy, among other issues, in a heated hearing on Wednesday.

The hearing, which was intended...
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