Rep. William Lacy Clay got off the big question when he asked CEO Liddy, “Is AIG in effect a giant sinkhole?”
AIG CEO Edward Liddy defended his enfeebled company on Capitol Hill Wednesday, yet claimed that even $180 billion in taxpayer money has only “reduced, but not eliminated the systemic risk [toxic assets] that AIG presents to the global financial system.”
American International Group Inc. Chief Executive Edward Liddy on Wednesday defended the embattled insurer by describing steps it has taken to reduce its size and risk to the global financial system.
“We have a plan to repay the American taxpayer. AIG will emerge as a much smaller, more nimble company,” said Liddy at a House Oversight and Government Reform Committee hearing on Wednesday. “The financial products unit will not exist. We have reduced, but not eliminated the systemic risk that AIG presents to the global financial system.”
The hearing focused on the collapse and federal bailout of the mega-insurance company.