US lawmaker questions AIG plan to sell assets

14 May, 2009

The government-installed head of AIG told Congress Wednesday the insurance giant is selling many of its foreign assets to repay US taxpayers, but lawmakers questioned whether the plan makes sense and demanded details. American International Group Inc Chief Executive Edward Liddy said the company has reduced, but not eliminated, the risk its failure could pose to the global economy despite getting more than $180 billion in federal bailout aid.
``The assurance I can give you is we will do everything we can to not require more federal money' but that will hinge on how long the world-wide recession drags on and the condition of the financial markets, Liddy said. Liddy agreed to provide portions of AIG's ``Project Destiny' restructuring plan to the House Oversight and Government Reform Committee, but said details are sensitive and could hurt the company's ability to sell assets. ``We will work with you to provide everything that we possibly can,' Liddy told committee chairman Representative Edolphus Towns. Americans were angered over AIG's secrecy and its payment of millions in bonuses to employees, Towns said.

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