AIG CEO Edward Liddy told the House Financial Services subcommittee this afternoon that he has asked the members of the Financial Products division to voluntarily return half of their bonuses.
“It was distasteful to make these payments,” said Liddy. “This morning, I’ve asked the employees of AIG Financial Products to step up and do the right thing. Specifically, I’ve asked those who received retention payments in excess of $100,000 or more to return at least half of those payments.”
When asked by Chairman Barney Frank if he would agree to provide the names of the bonus recipients to the committee, Liddy agreed on the condition that they would remain confidential.
Frank refused to promise confidentiality and informed Liddy that he will subpoena the information if it is not provided. Liddy responded by reading from a recent death threat that suggested AIG employees and their families should be executed “with piano wire,” claiming that releasing the names would endanger the lives of AIG employees.
Chairman Frank explained that the Congress would follow the advice of law enforcement and security advisers once the names were turned over, but that he was not persuaded by the death threat argument.