Senator Grassley says AIG executives should kill themselves.

[jimmy olsen]

I lolled

http://www.msnbc.msn.com/id/29733519/

AIG outrage in Washington: 'This is ridiculous'
One lawmaker suggests that firm execs should resign or kill themselves

WASHINGTON - From the White House to Capitol Hill, outrage continues to grow over insurance giant AIG's executives receiving $165 million in bonuses after taking billions in federal aid.

President Barack Obama called the company reckless and greedy, Congressional Democrats threatened to tax the bonuses into oblivion, and a Republican lawmaker from Iowa even suggested that AIG leaders should take a Japanese approach toward accepting responsibility for the collapse by resigning or killing themselves.

"Obviously, maybe they ought to be removed," said Sen. Charles Grassley during an Iowa City radio interview on Monday. "But I would suggest the first thing that would make me feel a little bit better toward them if they'd follow the Japanese example and come before the American people and take that deep bow and say, I'm sorry, and then either do one of two things: resign or go commit suicide."

An AIG spokesman responded to Grassley's comments, saying, "The remark is very disappointing, but AIG's employees continue to work with poise and professionalism to take care of policyholders and repay taxpayers."

Grassley later backtracked during a Tuesday morning conference with reporters, saying he would like executives of failed companies to make formal public apologies, as business leaders have done in Japan.

"What I'm expressing here obviously is not that I want people to commit suicide," said the senator.

Grassley, who's up for re-election next year, voted for last October's Troubled Asset Relief Program bill, which allocated some funds to AIG. He did, however, vote against the stimulus bill which imposed some limits on firms receiving TARP money — although bonuses arranged prior to Feb. 11, 2009 were exempted.

White House response
The White House said Tuesday it was considering a variety of ways to retrieve millions of dollars paid out in bonuses to employees of American International Group Inc.

"Obviously, the president is committed to working as quickly as possible with Congress to find ways to recoup this money," White House spokesman Robert Gibbs told reporters.

Gibbs said that would include a range of ideas, "whether it's changing the tax code or whatever ideas" are raised in Congress.

Taking a series of questions about AIG from reporters, Gibbs had no answers for many matters, including when Obama learned about the bonuses and why the president did not discuss them until a contractual deadline about the bonuses had passed last week.

Asked directly if Obama is satisfied that he found out about the bonuses in a timely fashion, Gibbs said: "Yes, the president is satisfied."

Earlier, the administration said it was trying to put stricter limits on the next $30 billion installment in taxpayers' money for AIG.

On Monday, Obama lambasted the insurance giant for "recklessness and greed" and pledged to try to block payment of the bonuses.

The president said he had directed Treasury Secretary Timothy Geithner to determine whether there was any way to retrieve or stop the bonus money.

Reid wants an AIG refund
Senate Democratic Leader Harry Reid says Congress is hoping to force AIG executives with millions in bonuses to give some of the money back to the U.S. Treasury.

"Recipients of these bonuses will not be able to keep all of their money," he declared in an unusually strong threat delivered on the Senate floor.

"If you don't return it on your own we will do it for you," said Sen. Chuck Schumer, D-N.Y.

House and Senate Democrats are currently crafting separate bills to tax up to 100 percent of generous bonuses awarded by companies rescued by taxpayer money.

AIG would not be the only firm named by either Democratic bill, but there was no question whose executives inspired the legislation.

"They're not going to get the financial benefit of those bonuses," said Senate Finance Committee Chairman Max Baucus, D-Mont.

In the House, Reps. Steve Israel, and Tim Ryan, both Democrats, introduced a bill that would that would tax at 100 percent bonuses above $100,000 paid by companies that have received federal bailout money.

"We will use any means necessary," said Ryan. "It boggles my mind how these executives can be so unaware of what the American people are going through."

The Internal Revenue Service currently withholds 25 percent from bonuses less than $1 million and 35 percent for bonuses more than $1 million.

More fire on Capitol Hill
Elsewhere on Capitol Hill, House Financial Services Chairman Barney Frank, D-Mass., told reporters that the U.S. should look into its "ownership" rights with AIG as a means of recouping some of the bonus money.

Frank argued that the nation owns about 80 percent of company.

"I think the time has come to exercise some of our ownership rights...And then say as owner, 'No I'm not paying you the bonus. You didn't perform.'"

AIG was also predictably raked over the coals at a Senate Banking Committee hearing Tuesday on regulating the insurance industry.

"One way or another, we're going to try to figure out how to get these resources back," said Christopher Dodd, a Democrat from Connecticut and the panel's chairman.

"This is ridiculous," exclaimed Sen. Jon Tester, a Democrat from Montana. He said AIG executives "need to understand that the only reason they even have a job is because of the taxpayers."

On Tuesday, Sen. Richard Shelby, ranking Republican on the Banking Committee, charged that Geithner had known about the AIG bonus payments before they were made and failed to stop them.

"I don't know what President Obama knew about it," Shelby said. "I'd say he probably didn't know about it."

Shelby said that Geithner "either knew or should have known what was going on. We need to know, what are the details of this? When were the bonuses signed up? Who's getting it?"

The Alabama senator stopped short of calling for Geithner's resignation, saying "he's under fire from all sides now."

AIG claims contractual obligations
In a letter to Geithner dated Saturday, the government-appointed chief executive of AIG, Edward Liddy, informed Treasury that outside lawyers had informed the company that AIG had contractual obligations to make the bonus payments and could face lawsuits if it did not do so.

Administration officials said over the weekend that Treasury determined the government had no legal authority to block the current payments by AIG — which are part of a larger total payout reportedly valued at $450 million.

Instead, Geithner asked that the company scale back future bonus payments where legally possible, the administration said.

73 execs got $1 million bonuses
In another development, New York Attorney General Andrew Cuomo said AIG paid bonuses of $1 million or more to each of 73 employees, including 11 who no longer work for the company.

Cuomo subpoenaed information from AIG on Monday to determine whether the payments made over the past weekend constitute fraud under state law.

He says contracts written in March 2008 guaranteed employees 100 percent of their 2007 pay for 2008, regardless of their performance. The checks were mailed Friday.

AIG reported this month that it lost $61.7 billion in the fourth quarter of last year, the largest corporate loss in history, and it has benefited from more than $170 billion in a federal rescue.

News that AIG still needs billions in taxpayer dollars to prevent a collapse did little to build public confidence, Obama aides acknowledged. Seeking to turn the public tide, White House spokesman Robert Gibbs aggressively criticized AIG and said administration officials were working to put strict limits on the next $30 billion installment bound for the company.

"Treasury has instruments that can address the excessive retention bonuses, and add provisions to ensure that taxpayers are made whole," Gibbs said.

The Associated Press contributed to this report.

[Martinus]

Only if Republicans kill themselves first for running the country into the ground and then losing elections.

[alfred russel]

I question why any senior executive would want to stay at AIG, except for the possibility that they can't find a good job elsewhere.

[Caliga]

"My name is Chuck Grassley, and I'll say anything, no matter how stupid it is, to ingratiate myself with my constituents!"