Washington, DC - Congressman Wm. Lacy Clay took AIG Chairman and CEO Edward Liddy to task for $165 million in retention bonuses paid to over 400 executives in the company’s troubled Financial Products Unit. In questioning before a House Financial Services subcommittee hearing today, Mr. Clay commented, “Mr. Liddy, I opposed the bailout then, I oppose it now, and I wonder if the taxpayers are investing in a sinkhole at AIG.”

The Congressman completed his questioning of Mr. Liddy in interactive fashion by including a question submitted by a St. Louis Post-Dispatch Political Fix blogger who goes by the pen name of “Geno.” The Congressman had solicited questions from the public for use at the hearing. In his question for Mr. Liddy, Geno the blogger asked, “How can AIG defend bonuses given to people that have run the company into the ground? Every place I have worked, bonuses are given to people who make money for the company. As far as retaining good help, you have really missed the boat!”

Mr. Liddy defended the use of retention bonuses as the best way for AIG to wind down their Financial Products Unit at the lowest cost to the taxpayer.
Last fall, Congressman Clay was an outspoken opponent of the Wall Street bailout. Before questioning Mr. Liddy, Mr. Clay said, “I have rarely seen my constituents so utterly and totally disgusted as they are today. The taxpayers own this company. And one way or another, we are going to return that bonus money to the taxpayers….either voluntarily or by legislative action.”