Edward Liddy, chief executive of AIG, on Wednesday tried to soothe anger against the bailed-out insurance group by urging employees to give back the $165m in bonuses that have sparked a political firestorm.
He told legislators he had asked employees of AIG Financial Products – the arm that brought the group to the brink of collapse – to “step up and do the right thing”. The concession came as President Barack Obama defended Timothy Geithner, Treasury secretary, amid criticism of the administration’s handling of the controversy.
