Liveblog: House Financial Services hearing on AIG bonuses

By Kayleigh Harvey - Talk Radio News Service

TRNS is liveblogging the House Financial Services Committee Hearing on AIG bonuses. Updates will be added at the bottom of this post.

The Subcommittee hearing will be divided into two panels. The Committee will hear firstly from, Mr. Scott Polakoff, Acting Director for the Office of Thrift Supervision; The Honorable Joel Ario, Insurance Commissioner, Pennsylvania Insurance Department, on behalf of the National Association of Insurance Commissioners; Ms. Orice M. Williams, Director Financial Markets and Community Investment, Government Accountability Office; and Mr. Rodney Clark, Managing Director, Insurance Ratings, Standard & Poor's.
On the second panel, the Committee will hear from Mr. Edward M. Liddy, Chairman and Chief Executive Officer, American International Group.

Prior to the start of the hearing some of the members of Code Pink came with protest signs on their t-shirts. One member stood on the chair until the Subcommittee chair asked for order. Medea Benjamin, founder of Code Pink wore a sign that said: AIG-JAIL" and "Give us our money back."

Chairman of the Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprise, Paul Kanjorski, said in his opening statement: "We need to ask what happened, why it happened, what is happening now, and what we can do going forward to prevent similar situations. To protect the taxpayers, we must also ensure that AIG acts prudently and pays back its borrowed funds promptly."

Ranking Member Spencer Bachus (R-Al), said: "The blame game needs to be secondary."

Congressman Michale Castle (D-DE) said: "The American people need answers and to be able to trust the government now more than ever."

Congressman Michael Capauno (D-Mass.) asked the members of the first panel "where you were when AIG made their decisions."

Congressman Paul Hodes (D-DH) said: "AIG now stand for arrogance, incomptence and greed."

The greater outrage should be 4 bailouts later, no end in sight, over a congress and a president who could have orevented all of this.

Congressman David Scott (D-GA) said: "We have got to put a pause button on these bailouts."

Mr. Scott Polakoff said in his opening statement: "The rapid decline of AIG stems from liquidity problems."

Ms. Williams said in her opening statement "AIG has had mixed success" from federal government assistance. Ms. Williams said that there are no final result on the extent to which federal government assistance has helped AIG at this time.

Sub-committee Chair Paul Kanjorski made a passing remark that he had not anticipated so much attention to this hearing.

Ms. Williams said in response to a question from Congressman Scott Garrett (R-NJ), on how to act on this situation: "This is an issue that we will do what you instruct us to do."

Ms. Williams responded to Ranking Member, Spencer Bachus's (R-AL), question on the current status of AIG: "We looked at where they are and we noted some challenges...results are ongoing."

Congressman Gary Ackerman (D-NY) said: "There's a company called 'I can't believe it's not butter,' at least they have the decency to tell you that it's not butter." He added that it would have been nice if the company had admitted that what people were getting really wasn't insurance, but if that had been the case then people may not have bought it. "We need to make sure that people who think they are buying insurance, are buying insurance," Ackerman added.

The House Financial Services Committee stopped as the House was called to vote. During the recess, protestors from Code Pink began shouting at the Representatives to stay and listen to them. They demanded more money to be spent on education and for AIG to be made to give taxpayers their money back. Two members stood on chairs inside the room. All Representative's left the room to vote.

The hearing resumed with continued questioning of the first panel.

Congressman Brad Sherman (D-CA) said "It is clear that the $170 billion has gone not just pay the bonuses but has gone to take care of the counterparts...it is time that they are put into receivership."

Congressman Michael Capauno (D-Mass.) said "It's everybody's fault...everybody here allowed it to happen...it's done, we are where we are. AIG to me is just one of the many problems."

Mr. Polakoff said: "The question of whether that money ca be paid back...from an insurance perspective the answer is yes."

Mr. Clark said: "We are not certain when AIG is going to become profitable."

Congressman Stephen Lynch (D-Mass.) said: "We have received 0 in information in terms of AIG....we had sx months of silence basically...you folks are supposed to be out there helping us...why did we have to wait for six months, until this week...what's the problem with getting the answer to where the tapayers money is going?"

Mr. Polakoff was not able to form a conclusive answer to this question.

Congressman David Scott (D-GA), said: "Seems to me that somebody was asleep at the switch. This is an issue that borders on fraud and criminality."

The committee concluded its questions from the first panel at 1.22pm. A number of television cameras and photographers entered the room in anticipation for Edward Liddy's entrance. Code Pink held up their protest signs.

Sub-committee Chairman Paul Kanjorski, was extremely stern in calling the Committee room to order. Asking the Code Pink ladies to sit down. In his opening statement Chairman Kanjorski, made it clear that Mr. Liddy does not earn a CEO salary. He wanted to make this clear as he feared that Mr. Liddy and his family had received some very hostile responses as a result of the unfolding AIG scandal.

Member's of the Committee wanted to allow Mr. Liddy 'unlimited' time to give his opening testimony.

Mr. Liddy said: "We way every decision we make with one priority in mind...will we make this money back to pay back to the government."

With regard to the large bonuses paid out by AIG, Liddy said: "It was distasteful to have to make these payments."

"We have heard the American people loudly and clearly these last few days...We have asked those who received bonuses in excess of $100,000 to return at least half of those payments...some have offered to pay back 100 per cent of those payments," Liddy added.

Mr. Liddy said: "Everything we do is done in partnership with the Federal Reserve."

Chairman Paul Kanjorski asked: "Do you realize that the actions you took at AIG...may jeopardize the ability of this Congress to pass legislation to send further large checks to assist the economic depression/recession?"

Mr. Liddy responded: "I am."

Congressman ScottvGarrett (R-NJ), asked Mr. Liddy about the AIG exit strategy.

Mr. Liddy said: "The exit strategy i think is a solid one. It has been in place for a while now."

Proceedings were stopped momentarily during Mr. Liddy's questioning for Police to remove signs from Code Pink protestors. The ladies peacefully surrendered their signs to the Police,

Congressman Barney Frank (D-Mass.) joked that he was glad the Chairman had not also asked them to remove their t-shirts, which were also covered in protest slogans.

Congressman Frank asked that Mr. Liddy submit the names of those who received bonuses without restriction, to the Committee.

Mr. Liddy responded that his request was "legitimate" but was hesitant as he feared for the safety for those who received the bonuses and for the safety of their families.

Congressman Frank said he understood the fear of threats, calling such threats "despicable", but would "keep the request for those names on the table."

Speaking about AIG's debt, Mr. Liddy said: "It's a range of $80 billion, that's what we actually owe...we owe $40 billion from TARP funding...plus $50 billion that the Federal Reserve has invested."

Congressman Gary Ackerman (D-NY), thanked Mr. Liddy for performing his role to the best of ability. He apologized on the majority of decent American's for the threats he had received. He said: "I want to try and help you...pay the $165 million back...it is not worth the aggravation and angst that you have suffered."

Congressman Michael Castle (R-DE), asked Mr. Liddy about his correspondence with Secretary of the Treasury Timothy Geithner.

Mr. Liddy said:"I had a meeting with Secretary Geithner and he informed me that he had only been made aware a week prior to that."

Congressman Gary Ackerman (D-NY), asked whether Mr. Liddy would submit the names of those who received the bonuses to the Attorney General. Mr. Liddy was very evasive in his response."

Mr. Liddy said: "I want to be sure that if I turn over the names, there will not be a list of names, addressees and photos attached to them." He added that he would "follow the advice fo his General Counsel and do the right thing."

Congressman Brad Sherman (D-CA), asked Mr Liddy to submit to the Committee a chart that would show the Committee in the future, bonuses, the cost of the bonuses and who would receive these bonuses.

Congressman Michael Capauno (D-Mass.) asked: "When you were doing these bonuses, did you expect it to touch a nerve witht the american people?"

Mr. Liddy said: "Yes. I did...but not a the level it has."

Congressman Michael Capauno (D-Mass.) then asked Mr. Liddy whether ir not he felt that those who received the bonuses were the only people who were capable of doing their jobs.

Mr. Liddy responded: "No."

Congressman Michael Capauno (D-Mass.) suggested that Mr. Liddy could have fired those individuals and hired some of the capable unemployed people out there for less money.

Mr. Liddy disagreed with this point. He said that they had a special expertise that AIG could not afford to lose. In his response he repeated the phrase "risk assessment" several times when weighing up the pros and cons to paying out the bonuses.

Congresswoman Melissa Bean (D-Ill) asked Mr. Liddy about AIG's current financial situation and whether he felt they would be asking for more financial assistance. Mr. Liddy responded: "I believe we are adequately capitalized...very much a question of what happens with capital markets around the world."

Mr Liddy said: "It is not a failed company, it is a failing company unless we plan to do something about it."

Congressman Stephen Lynch (D-Mass.), said: "You have basically immunized yourself, protected yourself from one of the most stupid decisions from AIG," when referring to a document outlining AIG's bonus policy written in 2008.

Mr. Liddy replied: "I take offense at what you just said." To which Congressman Lynch responded: "Offense was intended." Congressman Lynch became increasingly frustrated with Mr. Liddy's responses to his questions, raising his voice as he spoke.

Mr. Liddy said: "Its a fact of life. AIG owes those counterparts that money".

The hearing went into recess for one hour as the House was called to vote.

President Obama celebrates St. Patrick's Day with the Irish Prime Minister

Irish Prime Minister (Taoiseach) Brian Cowen brought some St. Patrick's Day cheer today, as he met with President Barack Obama and Speaker of the House Nancy Pelosi (D-CA) on his visit to Washington D.C. The trio were greeted with the sound of bagpipes from the United States Air Force Reserve Pipe Band as they walked down the House of Representative steps. The Irish Prime Minister later discussed his visit with press outside the Cannon House Building.

Helping Prisoners Re-enter The Community Successfully

By Kayleigh Harvey - Talk Radio News Service

The House Appropriations Committee held a Commerce, Justice and Science Subcommittee hearing today on “What Works for Successful Prisoner Re-entry.”

Speaking before the committee were Representative Danny Davis (D-Ill), Professor James Byrne, Department of Criminal Justice and Criminology at University of Massachusetts, Lowell and Jeremy Travis, President of the John Jay College of Criminal Justice.

Chairman Alan Mollohan (D-WV) said: “It’s becoming more and more apparent that effective reentry programs are the key to reducing recidivism and the strains on our communities and prison resources associated with recidivism.”

Congressman Frank Wolf (R-VA) asked the witnesses whether there was “any other country that is doing something really great, that we’re not aware of?”

Professor Byrne suggested looking at the model used in the Republic of Ireland. “I went to a prison in Dublin last year...I was amazed by the work programs...there was 320 people in the prison and every one of them had work and a job, they had a job training program there. The first thing I noticed was the one to one ratio of inmates to guards, I was shocked at that.”

Mr. Travis expanded on this point stating: “America stand apart from the rest of the Western world, worse, in terms of our levels of incarceration, how we treat people while they are in prison and the approach to reintegration.” Mr. Travis suggested that America look at reintegration strategies used in the United Kingdom and Germany.

Congressman Davis said: “Half the people in prison are due to drug related crimes.”

Talking about what should be done now Mr. Travis said: “We don’t link drug treatment, we should make sure that people who have drug addiction and are coming back home, that they go to the head of the list rather than the back of the list for drug treatment. Why do we send someone home and tell them to wait five months for drug treatment, when we knew what date they were coming out and could have planned it so they’d have the continuity at this high risk period.”

Congressman Asks Budget Committee For Drinking Water

By Kayleigh Harvey - Talk Radio News Service

Congressman Gregorio Kilili Camacho Sablan (I-Northern Mariana Islands) was one of 33 House Representatives to testify before the House Committee on the Budget to discuss the FY2010 budget.

“This is the first time is history that a member of the Northern Mariana Islands, since entering the United States Commonwealth in 1978, have a representative in Congress to speak on their behalf before this committee and for this I am grateful, humbled and very privileged,” Congressman Sablan said.

Congressman Sablan said he views himself as the “single voice” appointed to raise awareness about a “great gulf in the standard of living” between his constituents in the Northern Mariana Islands and the continental United States.

Congressman Sablan asked the committee to help support the Northern Mariana Islands financially in securing safe drinking water. At present, a large majority of Northern Mariana residents have to buy their drinking water as the water that is stored in the water containers is not safe to drink.

“For such a simple thing as turning on the kitchen faucet and having water flow out, anytime of the day or night; water you can put in a glass and drink now, without having a second thought. This is the type of experience that the people I represent mostly do not have,” he said.

“What is today an infrastructure problem for us, could very soon, in the very near future become a health epidemic for the entire island...My solution is simple. I am asking the committee to accept the list of water and sewer projects that EPA has compiled...and provide the budgetary authority sufficient to permit Department of Interior to meet this need,” Congressman Sablam concluded.


Other requests to the Committee included, a request for more money to be spent on science and technology by Congressman Rush Holt (D-NJ), and Vernon Ehlers (R-Mich). Congresswoman Betsy Markey (D-Colo), asked for the budget to include assistance to Farmers in Colorado and for money to be spent on education. Whilst, Congressman Philip Hare (D-Ill) wants to see money spent on public transportation in Illinois.

Marine Corps - “Victims of sexual assault are entitled to our support”

By Suzia Van Swol - University of New Mexico/Talk Radio News Service and Kayleigh Harvey - Talk Radio News

The House Armed Forces Subcommittee held a Military Personnel hearing, today, on “Sexual Assault in the Military: Prevention.”

The subcommittee heard testimony from Carolyn Collins, program manger of the Army’s Sexual Harassment and Assault Response and Prevention (SHARP) Program, Raymond Bruneau, manager of the Marine Corps’ Sexual Assault Prevention and Response Program; Katherine Robertson, deputy manager of the Navy Installation Command’s Counseling, Advocacy and Prevention Program and Charlene Bradley, assistant deputy for the force management integration in the Office of the Assistant Secretary of the Air Force for Manpower and Reserve Prevention and Response Office.

This was one in a series of hearings that this subcommittee will conduct on the subject of sexual assault in the military, this year. The hearing today focused on Prevention Programs that are currently in place.

Chairwoman Susan Davis (D-CA) said: “Just as we have the responsibility to ensure that victims of a sexual assault receive all the support that can be provided following an attack, we also have an obligation to do all we can to prevent such attacks from ever taking place. The Department of Defense has made significant improvements in recent years, but the question we need to ask is, has enough been done?”

Congresswoman Loretta Sanchez (D-CA) asked the witnesses whether and why the question “do women belong in the military” was still an issue and stated that this needed to be addressed. She said there needs to be a “change in cultural attitudes” towards woman in the military, and more “effective laws.”

The prevention and after-care systems that were identified by the panel seemed focused on the woman; offering counseling for victims. There was no evidence of rehabilitation programs in place for the men who commit this offense.

Mr. Bruneau said: “People are our most important resource. Marines have a long history of taking care of their own. Which means that we do not intentionally harm one another. Nor, do we leave a comrade behind. Victims of sexual assault are entitled to our support and care and deserve to be returned to the fight as fully functioning marines. The marines as always, are committed to caring for their own, as it’s the right thing to do.”

The subcommittee showed three videos by the witnesses that have been created by and for the military in an attempt to highlight the serious nature of sexually criminal behavior.