Special Report: Global Financial Crisis

    LOS ANGELES, March 18 (Xinhua) -- U.S. President Barack Obama said on Wednesday that the American International Group (AIG) "offends our values" by paying lavish bonuses to its executives.

    "It's hard to understand that a company that is relying on extraordinary assistance from taxpayers to keep its doors open would be paying anybody lavish bonuses," Obama said at a town hall-style gathering in Costa Mesa of Orange County near Los Angeles.

U.S. President Barack Obama participates in a town hall meeting at the Orange County Fair and Event Center in Costa Mesa, California March 18, 2009.(Xinhua/Reuters Photo) Photo Gallery>>>

    "It goes against our most basic sense of what's fair and what's right," Obama said. "It offends our values."

    The town hall meeting was the first stop on Obama's two-day visit to Southern California, during which he is expected to emphasize his economic stimulus plan, including the 787-billion- dollar package approved by Congress, his administration's efforts to help homeowners facing foreclosure and small-business owners needing loans.

    In his speech, Obama took full responsibility for the millions of dollars in retention bonuses paid to the insurance company's executives shortly after it received billions of dollars from the taxpayers via a federal bailout.

    "Listen, I'll take responsibility. I'm the president. We didn't draft these contracts. We've got a lot on our plate, but it is appropriate when you are in charge to make sure that stuff doesn't happen like this."

    Obama also tried to offer words of hope for a state facing high unemployment, teacher layoffs and other financial problems.

U.S. President Barack Obama speaks at a town hall meeting at the Orange County Fair and Event Center in Costa Mesa, California, March 18, 2009.(Xinhua/Reuters Photo) Photo Gallery>>>

    "One out of every 10 Californians is out of work right now," he noted. "You've got one of the highest foreclosure rates in the nation. Budget cuts are threatening the jobs of thousands of teachers across the state. But here is what I want you to know -- we are not only going to make it through this crisis, we are going to come out on the other side a stronger and more prosperous nation."

    After making brief remarks that were repeatedly interrupted by fans yelling "we love you" and chanting "O-bam-a," the president answered questions for nearly an hour.

    When asked how the federal government's stimulus package will help teachers who are in danger of losing their jobs, Obama said the funds are intended to retain teachers. However, he said keeping teachers in their jobs is just one part of the educational equation.

    "We've got to provide better teacher training. There are teachers who may not know their subject matter as well as they should. They've got to be given more time for professional development. We've got to have more flexibility, I believe, in terms of how we reward teachers," Obama said.

    The president also called for actions to ensure that employee wages keep pace with the cost of living, something that did not happen over the last decade.

Members of the audience listen as U.S. President Barack Obama participates in a town hall meeting at the Orange County Fair and Event Center in Costa Mesa, California March 18, 2009.(Xinhua/Reuters Photo) Photo Gallery>>>

    "All I'm trying to do is restore some balance to our economy so that middle class families who are working hard -- they're not on welfare, they're going to their jobs every day, they're doing the right things by their kids --they should be able to save, buy a home, go on a vacation once in a while," Obama said.

    "They should be able to save for retirement, send their kids to college. That's not too much to ask for, that's the American dream. "

    Referring to the sensitive issue of immigration, Obama said there needs to be a crackdown on employers who employ illegals to stop the "intolerable" entry of half-million illegal immigrants into the U.S. each year.

    But he also said there needs to be a pathway to citizenship for undocumented workers, and that the entire issue must be tackled at the same time or it won't work.

    Obama also brushed off criticism that he is attempting to solve too many problems at one time.

    "When you're president, you've got to walk and chew gum at the same time," he said.

    Obama arrived earlier in the day for the two-day swing which will also include a town hall meeting in Los Angeles, a tour of an electric vehicle plant in Pomona in the city and an appearance on " The Tonight Show with Jay Leno", according to the White House.

    Obama's "Tonight Show" visit will mark the first time a sitting president has appeared on a late-night talk show.

    "The president's decision to go west and do two town hall meetings -- obviously, part of that is to discuss with the American people and give the American people the opportunity to discuss with him their concerns about the economic challenges that we face," White House spokesman Robert Gibbs said this week.

Two U.S. mortgage giants plan to pay bonuses to executives

    WASHINGTON, March 18 (Xinhua) -- U.S. mortgage giants Fannie Mae and Freddie Mac plan to pay retention bonuses to their executives while the government and Congress are seeking ways to strip American International Group executives of hefty bonuses.

    The government-controlled Fannie Mae plans to pay bonuses of at least one million dollars to four key executives in an effort to keep hundreds of employees from leaving the company, according to news reports on Wednesday. Full story

AIG employees asked to return bonuses amid national anger

Edward Liddy (L), chief executive officer of American International Insurance group (AIG), testifies before the House Financial Services Committee as they hold a hearing on "American International Group's Impact on the Global Economy: Before, During, and After Federal Intervention", on Capitol Hill in Washington,the United States, March 18, 2009. (Xinhua/Zhang Yan) Photo Gallery>>>

    WASHINGTON, March 18 (Xinhua) -- The head of financially troubled insurance giant American International Group (AIG) on Wednesday called on top-earning employees to voluntarily return at least half of the bonuses.

    Some employees have already stepped forward to give money back, said Edward Liddy, chairman and chief executive officer of AIG, while testifying under oath at a congressional hearing. Full story


AIG bonus causes uproar at time of bailout 

    NEW YORK, March 17 (Xinhua) -- American International Group (AIG), the largest U.S. insurer under water, has become a public spitting target after it revealed a 165-million-U.S. dollar bonus package to its executives.

    Meanwhile, as details of the scandal were uncovered, Barack Obama's administration scrambled to assign blame for the payouts. Full story


Geithner: AIG to pay back government for hefty bonuses 

     WASHINGTON, March 17 (Xinhua) -- U.S. Treasury Secretary Timothy Geithner said Tuesday that the troubled insurance giant American International Group (AIG) is to pay back the government for hefty bonuses it paid out to its executives.
     "We will impose on AIG a contractual commitment to pay the Treasury from the operations of the company in the amount of the retention awards just paid," Geithner said in a letter to lawmakers. Full story

U.S. lawmakers move to strip AIG executives of bonuses

    WASHINGTON, March 17 (Xinhua) -- Lawmakers at U.S. Congress vowed on Tuesday to all but strip executives of the troubled American International Group (AIG) of their 165 million dollars in bonuses.

    House and Senate Democrats were crafting separate bills to tax up to 100 percent of generous bonuses awarded by AIG and other companies rescued by taxpayer money, according to U.S. media reports. Full story

Obama slams AIG for paying bonuses to executives

U.S. President Barack Obama (L) and Treasury Secretary Timothy Geithner arrive in the East Room of the White House in Washington March 16, 2009 to make announcements on helping small business during the economic crisis. (Xinhua/Reuters Photo) Photo Gallery>>>

    WASHINGTON, March 16 (Xinhua) -- U.S. President Barack Obama on Monday blasted insurance giant American International Group and pledged to try and prevent it from giving its executives 165 million dollars in bonuses after taking billions in federal bailout funds.

    "It's hard to understand how derivative traders at AIG warranted any bonuses, much less 165 million dollars in extra pay," Obama said at the outset of an appearance to announce a plan to boost small businesses loans. Full story

Obama administration unveils plan to unlock credit for small businesses

    WASHINGTON, March 16 (Xinhua) -- The Obama administration on Monday unveiled a plan to help unlock credit for the nation's small businesses, which have generated about 70 percent of net new jobs annually over the past decade.

    "We are taking immediate action to help ensure that credit -- the lifeblood of America's small businesses and its economy -- gets flowing again to entrepreneurs and business owners," said U.S. Treasury Secretary Timothy Geithner, who with President Barack Obama unveiled the plan at the White House. Full story

Report: AIG to pay millions in bonuses despite gov't pressure

    WASHINGTON, March 14 (Xinhua) -- Insurance giant American International Group, which has received 173 billion U.S. dollars in federal bailout cash, will still give its senior employees tens of million of dollars in bonuses, The Washington Post reported. Full story

White House: Latest aid to AIG is critical

    WASHINGTON, March 2 (Xinhua) -- The U.S. government's latest aid to the troubled insurance giant American International Group (AIG) is critical, White House spokesman Robert Gibbs said Monday.

    While answering questions raised by reporters, Gibbs did not rule out future help for the ailing insurer. Full story

AIG to get additional $30 bln aid from U.S. gov't

    NEW YORK, Mar. 1 (Xinhua) -- American International Group Inc. (AIG) will receive up to an additional 30 billion U.S. dollars in federal assistance as part of the latest revamp of its government bailout, the Wall Street Journal reported Sunday.

    The new funding is intended to support AIG as it absorbs 60 billion dollars in quarterly losses and operational and competitive upheaval. Full story