AIG’s CEO said Wednesday that it may take three to five years for the insurance company to pay back the $180 billion it has received in government bailout money but that the company is making “substantial” progress toward meeting that goal.
Testifying in front of the House Oversight Committee, Edward Liddy said that he does not plan to ask the government for any additional funds but that the companies plan depends significantly on how well global financial markets perform.
“The assurance I can give you is we will do everything I can not to request additional money,” Liddy said.
Liddy similarly said the company will do all it can to fully repay American taxpayers, who currently have a majority stake in the company thanks to the bailout funds.
AIG has come under severe scrutiny for $165 million in retention bonuses paid to employees after the company received billions in bailout funds.
While many of the panel members appeared pleased to hear of Liddy’s progress, the hearing had some testy moments and some expressed significant skepticism. In particular, several lawmakers took issue with Liddy’s refusal to turn over AIG’s recovery plan, or “Project Destiny,” as he repeatedly called it.
Committee Chairman Edolphus Towns (D-N.Y.) asked bluntly: “Why can’t we get it?”
Liddy said his lawyers have advised the he be “careful with the amount of detail we provide,” because full public disclosure might give the companies competitors and unfair advantage and hinder recovery plans.
In light of a detailed report in the Washington Post Tuesday morning, Liddy was also questioned about whether there was any conversations about the bonuses with Treasury Secretary Timothy Geithner when he was president of the New York Fed.
Liddy said he did not discuss the bonuses with Geithner in 2008, before Geithner joined the Obama administration.