Edward Liddy, the CEO of AIG, spoke in front of a congressional committee that wanted to hear more about AIG’s present plans and what the future may hold. The committee didn’t hold back when it came to questioning and even slamming AIG.

In recent months, AIG has come under the microscope for giving millions of dollars in bonuses to employees. That angered people around the country because it appeared as if AIG rerouted bailout money to the pockets of the same people who guided AIG to ruin.

According to Lidd, AIG is hoping to not need to ask for any more federal bailout money.

AIG Umbrella (Image: Flickr)

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CEO: AIG Will Eventually Repay Bailout

Fannie Mae and Freddie Mac were earlier taken over by federal regulators but continue to struggle. In the first quarter of 2009, Fannie Mae posted a loss of more than $23 billion. Freddie Mac’s numbers are expected to be released next week and those numbers are expected to also be ugly.

Without the bailout, Fannie Mae warned that the company wouldn’t be able to survive. Even with this latest bailout, Fannie Mae said that they won’t stop losing money anytime soon.

With job losses mounting and the economy still a long ways away from being fully repaired, some experts believe that the foreclosure rate could remain high for years to come.

Fannie Mae Headquarters (Image: FutureAtlas.com)

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Fannie Mae Wants $19 Billion Bailout

JPMorgan Chase is Making Money Once Again (Image: Flickr)

Although the bank took more than $25 billion in United States federal government bailout money, JPMorgan Chase said that it is contemplating paying back the bailout money. The bank also said that they do not believe that they need further bailout aid.

Although the banking industry seemed to be in much danger a few months ago, JPMorgan Chase is the third major bank to surprise experts with a high profit showing. Many industry experts now think that the worst days of the financial crisis have passed.

JPMorgan Chase may be further pressured to payback the bailout money due to the fact that the federal government is cracking down on executive pay for company’s that have received a bailout.

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JPMorgan Chase Shows Healthy Profits

The bill, which was sponsored by Rep. Jim Himes of Connecticut and Rep. Alan Drayson of Florida, allows for industry regulators and the U.S. Treasury Secretary to decide whether or not bonuses are excessive or unreasonable. As advised by President Barack Obama, a delicate yet effective means was needed. A previous bill passed by the House has been deemed as too severe.

The companies that would be under scrutiny would be any company that receives federal bailout money. With so many companies being bailed out, this bill could have far reaching ramifications. Republicans in the House feared that this bill would scare away investors that would otherwise try to help the struggling financial industry.

In total, AIG has reportedly now taken more than $180 billion in bailout money from the United States federal government.

United States Capitol Building (Image: Flickr)

Post from: EveryJoe

Congress Goes After AIG Bonuses Again