Edward Liddy, CEO of American Insurance Group, warned a congressional panel Wednesday of 'dire consequences' if the bailed-out insurer is allowed to fail. Liddy's warning came in response to questioning by Rep. Paul Kanjorski (D-Penn.), chairman of the Financial Services subcommittee, who asked Liddy if he fully understood the consequences of the decision to pay $165 million in bonuses to AIG executives. Comments from Registered Members | (Register or log in to make your comment.) | Mark Davis 2009-03-20
Karl Marx was clueless. Ron Paul gets it. But politics is just a show to keep the sheeple distracted. The Democratic-Corporate-State used to rule us (what many uneducated drones call capitalism) is in its last days. The US Imperial Federal Government is insolvent, will default on its debts and go the way of the Soviet Union. Don't fear this real change, we will be better off as markets are freed up to allow sustainable growth while punishing poorly run companies. Let the Wall Street Banksters go broke like they deserve to for exploiting the masses since at least 1913. Free-market money and banking will save us, not the violence of central planning. | lewb 2009-03-20
The mess we're in won't be fixed by propping up bad banks and firms. The FED can't do anything but control the money
supply. Capitalism is a scam foisted on us by those who control money.Money as a value system corrupts everything.It enslaves us all. Karl Marx was right to rail against capitalism.Until we rid the world of money as a value system we will continue on the road to unsustainability and eventual extinction.
| dmiller0120 2009-03-19
(continuation of my previous comment) ...and send the world into a World Wide Mass Depression, cause massive civil unrest riots, rebellion against governments, and possibly World War 3. So i ask you, stimulus supporters: Do you really want to "stimulate" everything i just mentioned? It's not that far off... This whole Economic Downturn is the result of American greed, ignorance, and arrogance. We caused this, and we need to clean up our mess. Its a shame to see the country (The United States) the entire world went to for economic, military, and foreign aid support, lead the world crusade into this Economic Crisis. I struggle to See America emerging from this with the hegemony it ounce had. | dmiller0120 2009-03-19
The AIG CEO has warned our Congress that "Dire Consequences" will persist if AIG fails. Since AIG owns a massive amount of debt, and are running out of money the government has already given them, they will soon be running to the government for more money, like a suckling to the mothers teat. Sure, the effects of AIG failure will be profound. However, when you compare those consequences to the consequences of continued government funding, they are miniscule. If America continues to fun this insurance giant, they will relly on the government to always fund it. We are reaching hyperinflation, and soon the dollar will crumble. In order to protect our nation, our people, our economy, and our currency, it is necessary to cut all funding to companies requesting more stimulus support. Either we let the major conglomerate companies run their course, or we risk hyperinflation, collapse of the dollar, collapse of the American economy (and the world economy will follow), and send the world into | maskimball 2009-03-19
I didn't think it was a good idea for us to bail out the banks in the first place. They claim they are so smart ... I'm sure the big boys would have figured out a way to survive. I agree with Jim Roger ... let the banks, AIG, GM, etc. fail, file bankruptcy and start over. Too big to fail, indeed ... we should never let anything get that big in the first place. | CharlieL 2009-03-19
Liddy just "outed" the Federal Reserve. IF the Congress has the balls, this could be a moment when they can put "The Fed" on trial and show THEM to not be "the smartest people in the room" like they think they are. Ron Paul should be ALL OVER this one. | Swansen 2009-03-19
STOP GIVING OUT MONEY, look what they do with it. Seriously, not bonuses to its employees, no, lets give it to the people who don't actually need it. |
TranscriptHouse Financial Services Subcommittee
March 18, 2009
OFF CAMERA: Do you solemnly swear or affirm that the testimony you will give before this subcommittee in the matters now under consideration will be the truth, the whole truth, and nothing but the truth, so help you God?
EDWARD LIDDY, CEO, AIG: I do.
REP. PAUL KANJORSKI (D-PA): Are you aware of the fact that probably the funds available, the TARP funds, were run out shortly in the likelihood that additional funds will have to be secured by action and authority of Congress?
LIDDY: I am.
KANJORSKI: And do you realize that the actions that you take at AIG and took in this precise case not only impacts AIG and the potentials of that reality occurring that you described, but it may have jeopardized our ability to get a majority in this Congress to support further largesse, to provide funds to prevent a recession, depression, or meltdown? Are you aware that that's the process of your decision now and how important it was?
LIDDY: I am, sir, although I think there's also a question of another element, and that is: if something happens to AIG, and AIG goes bankrupt or goes belly up and puts that risk, all the money that has already been put into it, that also can have dire consequences. I know $165 million is a very large number. It's a very large number. In the context of $1.6 trillion and the money that's already been invested in us, we thought that was a good trade.
KANJORSKI: Am I to understand you're saying that Chairman Bernanke or his designated person at the Federal Reserve was informed that you were going to make these payments and acquiesced in that decision?
LIDDY: Yes. Everything we do we do in partnership with the Federal Reserve. The Federal Reserve is at our board meetings, at our compensation committee meetings, at our various meetings on strategy, and they have the ability to weigh in either yay or nay on anything that we decide. And we've done that. We've been talking about this within the board and with our representatives at the Federal Reserve literally for three months.
DISCLAIMER:
Please note that TRNN transcripts are typed from a recording of the program; The Real News Network cannot guarantee their complete accuracy. | |
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