Grassley: AIG Execs Should Quit or Commit Suicide

The Associated Press

17 Mar 2009 | 10:51 AM ET

Iowa Sen. Charles Grassley suggested that AIG executives should accept responsibility for the collapse of the insurance giant by resigning or killing themselves.

The Republican lawmaker's harsh comments came during an interview Monday with Cedar Rapids, Iowa, radio station WMT. They echo remarks he has made in the past about corporate executives and public apologies, but went further in suggesting suicide.

"I suggest, you know, obviously, maybe they ought to be removed," Grassley said. "But I would suggest the first thing that would make me feel a little bit better toward them if they'd follow the Japanese example and come before the American people and take that deep bow and say, I'm sorry, and then either do one of two things: resign or go commit suicide.

"And in the case of the Japanese, they usually commit suicide before they make any apology."

Japanese executives often take responsibility for scandals within their companies by issuing public apologies on camera and stepping down. It is rare, however, that business executives have gone so far as to take their lives. In feudal Japan, ritual suicide was considered an honorable death under the samurai warrior ethic.

In response to the comment, AIG spokesman Nick Ashooh said, "The remark is very disappointing, but AIG's employees continue to work with poise and professionalism to take of policyholders and repay taxpayers."

Grassley spokesman Casey Mills said the senator isn't calling for AIG executives to kill themselves, but said those who accept tax dollars and spend them on travel and20bonuses do so irresponsibly.

"Senator Grassley has said for some time now that generally speaking, executives who make a mess of their companies should apologize, as Japanese executives do," Mills said. "He says the Japanese might even go so far as to commit suicide but he doesn't want U.S. executives to do that."

The senator's remarks added to a chorus of public outrage over the disclosure that AIG intends to pay its executives $165 million in bonuses after taking billions in federal bailout money. President Barack Obama on Monday lambasted the insurance giant for "recklessness and greed" and pledged to try to block payment of the bonuses.