AIG CEO answers to House
This morning, the CEO of insurance giant AIG will answer to a House Financial Services subcommittee about the bonuses paid to company executives. Tamara Keith breaks down why the firm has made so many angry.
The American International Building in Lower Manhattan, New York City. (Timothy A. Clary/AFP/Getty Images)
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Renita Jablonski: There's been no break in the uproar over the bonuses paid by AIG. This morning, the CEO of the bailed-out insurance giant will answer to a House Financial Services subcommittee. Tamara Keith has more.
Tamara Keith: Everyone may be fuming over the $165 million in bonuses. But Democratic congressman Brad Sherman says that's pocket change compared to the $170 billion AIG has gotten in government aid.
Brad Sherman: Million-dollar bonuses to the guys who built the AIG casino? People understand that. But what they aught to understand is that it's not just the portion of the iceberg that they can see that's wrong.
For instance, a lot of AIG's bailout money is going to pay off banks and institutions that made risky gambles on mortgage-backed securities.
Republican Congressman Jeb Hensarling suggests continuing to support AIG is just throwing good money after bad:
Jeb Hensarling: There comes a time when we need to be laying the foundation of the financial institutions for tomorrow and not trying to keep alive the financial institutions of the past.
And he won't be the only one at the hearing asking why taxpayers are keeping AIG on life support.
In Washington, I'm Tamara Keith for Marketplace.
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