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D.C. Dispatches by Cynthia Dizikes

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    Michele Bachmann questions AIG's Liddy

    By Cynthia Dizikes | Published Wed, Mar 18 2009 5:46 pm

    Rep. Michele Bachmann
    Rep. Michele Bachmann

    WASHINGTON, D.C. — Edward Liddy, AIG chairman and CEO, told a Congressional panel today that he has asked some employees to give back at least half of the bonus money recently handed out.

    Liddy testified before the House Financial Services subcommittee on capital markets, where he underwent intense questioning from both Democratic and Republican lawmakers.

    Rep. Michele Bachmann, R-Minn., who sits on the subcommittee, said that she was "just stupefied by the audacity of executives who even as they were able to retain their jobs by the grace of hard-working taxpayers are unwilling to deny their million-dollar bonuses."

    Meanwhile, a procedural motion that would have allowed Rep. Erik Paulsen's bill to recoup bonus payments made to executives by American International Group to be immediately considered by the House was defeated today in a 221 to 182 vote.

    Minnesota's delegation split along party lines.

    "It is simply incomprehensible that a company that has now received some $170 billion in taxpayer funding — the same company that recently posted the largest quarterly loss in U.S. corporate history — would pay their executives $165 million worth of bonuses," Paulsen, R-Minn., said in a statement.  "Today, we had a chance to take action to recover this funding and prevent it from happening again.  I'm disappointed this effort was defeated."

    Alternative plans have been suggested by House Democrats and the various senators, including waiting to see if A.I.G. can recover the money first.

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    Illustration by Hugh Bennewitz

    minnpost.com/cynthiadizikes


    Cynthia Dizikes is MinnPost's Washington, D.C., correspondent and covers Minnesota's congressional delegation and reports on developments out of Washington that are important to Minnesota readers. She received her master's degree in journalism from UC Berkeley and has worked as an intern in the Los Angeles Times' Washington bureau, reporting on a variety of topics, and as a reporter for the Anniston Star in Alabama. Her work has also appeared in the San Francisco Chronicle, the Oakland Tribune, Congress Daily and on National Public Radio. She can be reached at cdizikes [at] minnpost [dot] com.

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