American International Group, even as its financial situation became risky, doled out millions in bonus money and ignored concerns voiced by regulators and auditors, according to material revealed at a congressional hearing last week.
One executive at the hearing–Robert Willumstad, replaced as chairman and CEO by former Allstate executive Edward Liddy after last month's government bailout–testified that AIG was a victim of circumstances in the broader financial markets. "I don't believe AIG could have done anything differently," he said.
That assertion was disputed by Rep. Henry Waxman, D-Calif., chair of the House Oversight and Government Reform Committee, which is examining regulatory mistakes and company mismanagement that led to the need for an $85 billion federal loan to AIG.
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