For earlier liveblog posts:

(Video to the right of Rep. Frank and Ed Liddy discussing subpoenaing the names of bonus recipients and fear of piano wires is from the first part of Liddy’s testimony.)

Royce: Any discussion with members of the Senate to guarantee payment of bonuses?

Liddy: We have a strict prohibition against lobbying.

Royce: Could you check?

Royce: Discussions with members of the Administration?

Liddy: Geithner. First discussion would have been about a week ago. One on a Tuesday and one on a Friday. When I said administration, I did not include Federal Reserve.

Royce: Please send any talking points. The issue to us is that Senator Snowe was concerned about this provision. That measure applied these restrictions retroactively.

[Once again, Royce refuses to chase this down. Liddy has just said he was talking to the Fed, but Royce still wants to be able to claim that Dodd was the one responsible, so he backs off any questioning about the Fed.]

Scott: We are in effect at war. We need to hurry up and get this bonus issue off the table.

For earlier liveblog posts:

Royce: Any discussion with members of the Senate to guarantee payment of bonuses?

Liddy: We have a strict prohibition against lobbying.

Royce: Could you check?

Royce: Discussions with members of the Administration?

Liddy: Geithner. First discussion would have been about a week ago. One on a Tuesday and one on a Friday. When I said administration, I did not include Federal Reserve.

Royce: Please send any talking points. The issue to us is that Senator Snowe was concerned about this provision. That measure applied these restrictions retroactively.

[Once again, Royce refuses to chase this down. Liddy has just said he was talking to the Fed, but Royce still wants to be able to claim that Dodd was the one responsible, so he backs off any questioning about the Fed.]

Scott:  We are in effect at war. We need to hurry up and get this bonus issue off the table.

Posey: We wouldn’t care about the bonuses if it weren’t for the bailout money. A big bonus for these people is that they’re not in jail, and that they still have jobs. I can’t imagine that the demand is that great for someone who can screw up an entire company.  Have you seen any signs of what someone might normally consider criminal activity.

Liddy: Nothing has come to light that I am aware of. It really is easy to paint with one brush. There are people who worked on one piece called CDS. Another regulatory capital. Derivitives book. For the most part those are separate people. Those are the ones that brought our company to our knees. In the derivitives book those are the ones we’re asking to please wind this down. Those are the ones that got the bonuses.

Posey: Is there an obligation to report unethical behavior? To whom?

Liddy: Absolutely. 

Liddy: What we have at AIG is too much appetite for risk, too much appetite for business outside our core competence.

Posey: 73 people got bonuses that exceed 1 million, 11 are no longer with the company. 

Maloney: Submit questions in writing. On bonuses, you mentioned a number of people said they’d give back bonuses. On the floor tomorrow will be a bonus that will tax the bonuses. How many said they’d give back the money. I requested for many months now for a list of the counterparties. (more…)

emptywheel

emptywheel

Marcy Wheeler aka Emptywheel is an American journalist whose reporting specializes in security and civil liberties.