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Regulation and Compliance > Federal Regulation

Towns Gets His Witnesses

By Arthur D. Postal

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WASHINGTON — A congressional panel has pressed American International Group Inc. Chairman Edward Liddy and the trustees who oversee the government’s investments in AIG to appear at a May 13 hearing.

The House Oversight and Government Reform Committee is organizing the hearing.

If the AIG Trust trustees make good on their agreement to testify, they will be testifying for the first time since they were appointed to their posts in January.

The trustees are Jill Considine, the former chairman of the Depository Trust & Clearing Corp., New York, and a former New York bank superintendent; Chester Feldberg, former chairman of Barclays Americas, a unit of Barclays P.L.C., London; and Douglas Foshee, president of El Paso Corp., El Paso, Texas.

Rep. Edolphus Towns, D-N.Y., chairman of the Oversight Committee, sent a letter April 22 asking Liddy to testify May 6.

Liddy did not want to testify on that date, because AIG is scheduled to report its earnings for the first quarter the following day, according to sources who requested anonymity.

Liddy agreed to testify a week later only reluctantly, the sources say.

The trustees apparently did not think they would be required to make public appearances when the Federal Reserve Bank of New York asked them to monitor AIG, the sources say.

Towns has asked Liddy to discuss the causes of the downfall of AIG; whether federal financial assistance was the only “thing that could save the company”; and AIG’s use of the federal financial assistance.

Towns also has asked Liddy to be prepared to talk about whether AIG will need additional federal financial assistance, and about the steps being taken to stabilize AIG.

In the letters to Considine, Feldberg and Foshee, Towns asked them to answer questions about the roles and responsibilities of the AIG Trust; the efforts the trustees have undertaken to date in performance of their duties; and their views on whether the U.S. taxpayer’s investment in AIG is being adequately protected.

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