U.S. Rep. Brad Miller harshly criticized the head of troubled insurer AIG today.
During testimony by American International Group Chairman Edward Liddy this afternoon, the Raleigh Democrat went after the company for using $49.5 billion of federal bailout money to pay off credit insurance policies held by banks.
In an exchange that was broadcast live on CNN, Miller said that the research on banking crises in other countries shows it is crucial to maintain "market discipline" by ensuring that businesses that made bad decisions suffer.
"Are we maintaining market discipline by continuing to give money to AIG to pay unsecured creditors?" he asked, brusquely.
Liddy responded that the company was no longer paying off its insurance policies, then added that the company had to honor its contracts.
"To your basic point, we owe those people that money," he said. "It's just a fact of life. ... The result of not paying them is an event of default, and it forces the (other) company into bankruptcy."
Previously: Miller criticizes Treasury Department.
Correction: An earlier version of this post included an incorrect link.
Comments
Re: Miller attacks AIG head at hearing
March 19, 2009 - 10:12am — scharrison"including 25 in North Carolina."
Ryan, I may be wrong about this, but I believe the 25 North Carolina banks you're referring to are actually TARP recipients, and are not (necessarily) the ones that AIG is paying off for these insurance policies.
Re: Miller attacks AIG head at hearing
March 19, 2009 - 7:26am — FFC1304Hey Brad, why arent you pointing your finger in disgust at Barney Fwank, Chris Dodd, Maxine Waters, Franklin Raines, etc., who ought to be indicted and in JAIL!
Democrackkks make me PUKE!
Re: Miller attacks AIG head at hearing
March 18, 2009 - 10:53pm — tangozWow Brad Miller is giving into MOB mentality. String em up he says. Come on Brad, stop being a hypocritical left wing extremist and actually represent your constituents.
Re: Miller attacks AIG head at hearing
March 18, 2009 - 4:08pm — naturalcynicHey Brad, if you hadn't voted for that rotten bailout in the first place (against the wishes of your constituents!), maybe AIG wouldn't have that money to line their pockets with, ehh?
But then again, that would have taken away your opportunity to grandstand (along with Barney, and Chuck and Nancy and the rest of those who voted for the bailout).
With representation like this, does anybody wonder why this country is in such bad shape?