On Wednesday President Obama said that he will take responsibility about controversial bonus for AIG executives when AIG took $ 173 billion in bailouts.
“We did not draft this contract. We have got a lot on our plate. But it is precisely when your power is not going to make sure things like this,” said Obama at town hall meeting in Costa Mesa, California. Obama’s comments come just more than an hour after Chairman of Senate Banking Committee [Senator Christopher Dodd] told that he was responsible for the language added to the federal stimulus bill to ensure that the existing contract to receive the bonus in the company’s federal bailout money that is respectable. Both Dodd and the official said that administration officials fear the government will face many lawsuits without the new language.
Obama said at the town hall meetings that he was outraged at AIG executive bonuses that have been received, while the company has been getting tremendous support from the taxpayer to keep the doors open. “To all the people in Washington who are busy scrambling trying to figure out how to blame other people, just forward and speak to me, because I work to ensure that we improve messes even if I do not make them,” Obama said.
“But what is equally important that we ensure we do not find themselves in this situation again, where the taxpayer is on the hook for losses on bad times, and the wealth generated in the time to go to the people who are in the very top of the income ladder . So … I really committed to ensuring we have the tools we need to prevent violations of various AIG sent spiraling.” Before Wednesday, Obama said no one in administration has been responsible for overseeing the ailing insurance giant AIG, but ultimately, the buck stops with him.
“People are right to be angry. I’m angry. … People should be outraged about the special bonus,” he said.
Obama said he held discussions with the team with the economic and Rep. Barney Frank, D-Massachusetts, chairman of House Financial Services Committee. Frank presided over hearings on the controversy Wednesday AIG bonuses. On Wednesday afternoon, the executive chairman of AIG Edward Liddy to Congress that he has requested bailed out insurance employees who bring home more than $ 100,000 in bonuses to return at least half. He said he knew that the patience was “wearing thin,” said some employees have decided to return alone their entire bonus to the company.