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Former AIG head denies he started exec bonuses

(Agencies)
Updated: 2009-03-20 23:50

Greenberg said that AIG once was "the greatest company in history." It had been the world's largest insurer with clients all over the globe.

Related readings:  Obama envoy Holbrooke served on AIG's board  AIG unit sues Countrywide over loan losses  Some AIG staff to pay back bonuses  House passes bill taxing AIG and other bonuses

"Was there fraud? Was there whatever. I think it's stupidity. Well, do you punish stupidity," he said.

The bill was passed on a 328-93 margin despite sharp Republican attacks calling it a legally questionable ploy to cover up Obama administration missteps on this issue.

House Minority Leader John Boehner, R-Ohio, said the bill was "a political circus" diverting attention from why the administration hadn't done more to block the bonuses before they were paid.

Although a number of Republicans cast "no" votes against the measure at first, there was a heavy GOP migration to the "yes" side in the closing moments. The bill now goes to the Senate.

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