Congressional outrage at American International Group Inc. (NYSE:AIG)
hit a new height Monday when Sen. Charles Grassley, R-Iowa, angry over
the company's issuance of bonuses said the executives should resign or
kill themselves.
In
a comment aired on WMT, an Iowa radio station, Grassley said: "The
first thing that would make me feel a little bit better towards them if
they'd follow the Japanese model and come before the American people
and take that deep bow and say I'm sorry, and then either do one of two
things -- resign, or go commit suicide."
The radio clip was also aired on WTOP, a news radio station in Washington.
Politico,
a Washington-based news outlet, asked Grassley's spokeswoman Jill
Gerber about the comments, which she tried to clarify by saying, "Clearly
he was speaking rhetorically -- he meant there's no culture of shame and
acceptance of responsibility for driving a company into the dirt in
this country. If you asked him whether he really wants AIG executives
to commit suicide, he'd say of course not.
"Point being, U.S.
corporate executives are unapologetic about running their companies
adrift, accepting billions of tax dollars to help, and then spending
those tax dollars on travel, huge bonuses, etc.," Gerber told the blog.
Meanwhile there have been other suggestions of how to deal with the bonuses.
Sen. Chris Dodd, D-Conn., suggests taxing 98% of the taxable proceeds, just enough to not violate terms of the contract that
AIG says prevents it from taking the money back from the employees. Rep. Carolyn Maloney D-
N.Y.,
wants a 100% tax on bonuses not related to commissions. New York
Attorney General Andrew Cuomo, meanwhile, is conducting his own
investigation; he subpoenaed the insurance giant seeking more
information.
AIG told him the bonuses have already been delivered. -
Donna Block
Hear the radio clip on Politico See related story about AIG bonuses from Dealscape
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