Of course, Mr. Liddy is no stranger to this harsh spotlight, having already been dragged in front of grandstanding lawmakersto explain himself, as if he were somehow to blame for the reckless credit default swapsthat left this onceseemingly invinsiblejuggernautto the not-so-tender mercies of Uncle Sam.

Through it all, supportershave remindedcritics acting so high and mighty up in the peanut gallery that the Mr. Liddy receives only $1 in salary for his services, and that the former head of Allstate came out of retirement because ofa noblesense of duty to save his country's top insurance organization.

That white knight image might be tarnished, however,by recent reports revealing that AIGspent some $460,000 on Mr. Liddy's behalf last year–quite a sum, especially since hecame on board in September.

I have to imagine Congress will want to know howMr. Liddy managed to rack up that much in expenses inless than four months? As reported by our own Dan Hays, AIG's 10K filing notedbills of $47,000 for air commutingbetween his Chicago home andAIG's New York headquarters, $38,000 for his New York apartment, and $31,000 for car services! That'sa pretty steep expense account!

Since AIG insists Mr. Liddy generally flew commercial rather than on a corporate jet, you would think the frequent flier miles alone would earnhim some freetrips! As for the car service, it might have been cheaper for AIG to have justbought him his own corporate wheels!

AIG also paid $162,000 to Mr. Liddy's attorney “to develop appropriate compensation structures,” as well as another $180,000 to offset any tax obligations for Mr. Liddy's travel, living and legal expense reimbursements. AIG saidsuch a dealwas necessary so Mr. Liddy could “avoid his effectively having to pay to work at AIG.”

As forreports that Mr. Liddy was in line to cash in big time down the road if he turns AIG around,AIG put that to rest, noting that while “an equity arrangement forMr. Liddy was substantially negotiated, Mr. Liddy has now stated that he does not think it would be appropriate to enter into the proposed arrangement and has declined to move forward with it, especially in light of changing business, regulatory and legislative considerations.”

Actually, I wish AIG would stop the pretense ofthe $1 salary, pay Mr. Liddy a fair wage for a top-notch CEO (complete with incentive compensation for getting the company back on its feet), and let him handle his own additional living expenses! Or at least hire a replacement who actually lives in New York–thus cutting out the air and ground travel costs!

At least AIG did note that while in the past, the company had provided club memberships and other “recreational opportunities,” Mr. Liddy “has not participated” in such perks, and the company has “largely eliminated” them. Thank goodness for small favors!

What do you folks think?