NBC Nightly News - 2009-03-18 - 1 of 2

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[0:01] On the broadcast tonight, center stage.

[0:03] President Obama at a California town

[0:05] hall meeting late today, aiming to put

[0:07] out the fire over those AIG bonuses.

[0:10] Tragic death. Tony Award-winning actress

[0:12] Natasha Richardson dies of a brain

[0:14] injury. We'll have the latest. Risk

[0:17] factor. A test for prostate cancer taken

[0:19] by millions of American men each year.

[0:21] But does it do more harm than good? And

[0:24] where the jobs are. Even in this bad

[0:26] economy, people are hiring. We'll tell

[0:29] you where. Nightly News begins now.

[0:34] [music]

[0:36] >> From NBC News World Headquarters in New

[0:38] York, this is NBC Nightly News with

[0:41] Brian Williams.

[0:43] >> Good evening. I'm David Gregory. And

[0:45] tonight for Brian Williams, welcome to a

[0:46] special West Coast edition of Nightly

[0:48] News. President Obama traveled to

[0:50] California tonight to stage a campaign

[0:52] style town hall meeting about the

[0:54] economy. He argued that Americans angry

[0:56] about the government's bailout of

[0:58] companies like AIG must understand the

[1:00] administration's need to save the

[1:02] economy from the collapse of major

[1:04] financial institutions. It kept a day of

[1:07] tense questioning about why AIG paid out

[1:10] $165 million worth of bonuses to some of

[1:13] the very people responsible for the

[1:15] company's collapse. Congress wants to

[1:17] know how it could happen and how long

[1:19] the administration has known about it.

[1:21] We begin our coverage tonight on Capitol

[1:23] Hill with NBC's Kelly Odon. Kelly,

[1:25] >> good evening. David, Congress wanted to

[1:27] know so many answers during hours of

[1:29] questioning. Couple of key points. AIG

[1:32] says it has a strategy to repay

[1:34] taxpayers. And while still defending

[1:37] bonuses, the top executive came with

[1:39] some unexpected news.

[1:44] Today, AIG, the taxpayer rescued,

[1:47] bonuspaying insurance giant, finally had

[1:50] a public face.

[1:51] >> Be the truth, the whole truth, and

[1:53] nothing but the truth. So, help you God.

[1:55] >> I do.

[1:56] >> Thank

[1:56] >> and a name.

[1:58] >> My name is Edward Litty.

[1:59] >> As chief executive officer, Edward Litty

[2:01] was both grilled and defended.

[2:03] >> Mr. Litty is in no way responsible for

[2:06] these bonuses having been agreed to.

[2:08] Congress stressed Litty was not in

[2:10] charge when AIG imploded and came out of

[2:13] retirement to oversee the breakup of the

[2:14] failing company in order to repay

[2:17] billions in bailout money.

[2:19] >> I'm trying desperately to prevent an

[2:21] uncontrolled collapse of that business

[2:23] >> amid the furer over bonuses paid out at

[2:25] AIG this week. Litty came here with an

[2:28] olive branch, saying he urged employees

[2:31] who received more than $100,000 to give

[2:34] half of the bonus back. Some have

[2:36] already stepped forward and offered to

[2:38] give up 100% of their payments.

[2:40] >> Litty insisted the contractually

[2:42] required payment of the 165 million in

[2:45] bonuses should not have been a surprise

[2:47] to official Washington.

[2:48] >> Chairman Bernki or his designated person

[2:52] at the Federal Reserve was informed that

[2:55] you were going to make these payments

[2:57] and and acquiesced in that decision.

[2:59] >> Yes. Everything we do we do in

[3:00] partnership with the Federal Reserve

[3:02] >> and they did not say nay as far as these

[3:03] bonuses were concerned. While the

[3:05] Federal Reserve knew, Treasury officials

[3:08] insisted tonight Secretary Gener did not

[3:10] know until last Tuesday, demanding new

[3:14] details and threatening subpoenas.

[3:16] Today, Congress wanted names. Who got

[3:18] the money?

[3:19] >> I am now asking you to send us the names

[3:21] of those who received bonuses who have

[3:24] not given them back. Can you do that?

[3:27] >> Uh, sir, I I will if I can be absolutely

[3:31] assured that they will remain

[3:33] confidential. Well, I I won't give you

[3:34] that assurance, sir. And

[3:35] >> clearly resistant to identify his

[3:37] employees, Litty cited safety, and some

[3:40] threatening words even made it inside

[3:42] the hearing room.

[3:43] >> Signs down.

[3:45] >> Litty read a sample of the threats

[3:47] pouring into AIG.

[3:49] >> All the executives in their family

[3:50] should be executed with piano wire

[3:52] around their necks. Under political

[3:54] pressure, Litty said he would not have

[3:57] authorized the so-called retention

[3:58] bonuses himself, but justified their

[4:01] value, keeping key employees there to

[4:04] finish dismantling the company.

[4:06] >> The judgment we made was the risk was

[4:08] too great, that we would lose all the

[4:11] progress we made if we didn't pay these

[4:13] bonuses.

[4:13] >> Litty did not escape harsh words and

[4:16] some accusations that he shares more of

[4:18] the blame.

[4:19] >> I take offense, sir, at at the use.

[4:21] >> Well, offense was intended. So you you

[4:23] take it rightfully, sir.

[4:25] >> And there was more of that, David. And

[4:27] tonight, Treasury officials offer a new

[4:29] explanation for why Secretary Gitener

[4:31] didn't know about these