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Saturday, November 21, 
4:40 am

Grassley to AIG: Drop dead

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capitol_building_facade125.jpgCongressional 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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