Kansas representatives criticize Liddy

Two Kansas members of Congress on the House Financial Services Committee are among the many Americans criticizing nearly $165 million in bonuses that American Insurance Group gave to executives.

“We need to focus on repaying the taxpayers, removing the federal government from the private financial system, and preventing the shady practices that got us into this mess in the first place,” said Rep. Lynn Jenkins. “The American taxpayer did not make the mistakes at AIG or any of the other ‘too big to fail’ institutions and they should not be forced to bail them out.”

Jenkins, a member of the House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises, called the AIG bonuses outrageous and said the government financial bailout lacked accountability.

Edward M. Liddy, chairman and chief executive officer of AIG, appeared at a hearing Wednesday before that subcommittee. Liddy said he understands the rage over executive bonuses and said some AIG executives already have stepped forward to give money back.

Liddy told the subcommittee that the bonuses could be defended as a legal obligation of the company. But he also said that given the national uproar, he asked those who got “retention payments” of more than $100,000 to return at least half of the money.

Democratic Rep. Dennis Moore, whose district includes eastern Lawrence, is also a member of the House Financial Services Committee. Moore said several corporations have made irresponsible and “outrageous financial choices.”

“The American people deserve better, which is why it’s important that we hold more hearings like the one today — to shine the light on companies that misuse taxpayer funds and hold them accountable for their actions.”

Jenkins, a Republican who represents western Lawrence, submitted an opening statement for the record in Wednesday’s hearing.