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CNBC EXCLUSIVE: CNBC TRANSCRIPT: CNBC INTERVIEW WITH AIG CEO EDWARD LIDDY ON "SQUAWK BOX" TODAY AT 8:00 AM

WHEN: Today, Monday, Dec. 22nd at 8:00 AM ET

WHERE: CNBC's "SQUAWK BOX"

Following is the unofficial transcript of an exclusive CNBC interview with AIG CEO Edward Liddy on CNBC'S "Squawk Box" today.

All references must be sourced to CNBC.

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Live: CNBC's Joe Kernen: OUR FIRST GUEST IS AIG CEO EDWARD LIDDY. THE TERMS FOR THE RESCUE PLAN FOR THE INSURER IS A POINT OF CONTENTION FOR SOME OF THOSE IN WASHINGTON, INCLUDING REPRESENTATIVE ELIJAH CUMMINGS. ON FRIDAY, THE CONGRESSMAN USED 'SQUAWK'' AS A PULPIT TO SEND THIS MESSAGE TO MR. LIDDY.

On tape from Friday: Rep. Cummings: MR. LIDDY, WHY IS IT YOU SENT ME A LETTER SAYING 168 PEOPLE ARE GETTING RETENTION BONUSES AND THEN WE READ IN BLOOMBERG THERE ARE LITERALLY THOUSANDS OF PEOPLE ARE GETTING BONUSES FROM $160,000 TO $4 MILLION? AND WHY IS IT THAT YOU CANNOT SUSPEND THAT SITUATION, THAT IS THE REPRESENTATIVE OF THESE SO-CALLED RETENTION BONUSES SO THAT -- UNTIL THE ECONOMY IS BACK IN GOOD SHAPE? WE WANT TO KNOW THOSE ANSWERS.

Live: Joe Kernen: TODAY ED LIDDY IS TALKING BACK EXCLUSIVELY TO "SQUAWK BOX." I GUESS, IF YOU WANT, ED, WELCOME. THANK YOU FOR COMING ON. THERE ARE A COUPLE QUESTIONS THERE, BUT YOU HEARD THE GIST. HOW DO YOU ANSWER THAT?

AIG's Edward Liddy: I WOULD START WITH THE LAST QUESTION FIRST. WE ARE THE ONLY COMPANY HELPED BY THE FEDERAL GOVERNMENT TO PAY BACK EVERY SINGLE PENNY THAT HAS EITHER BEEN LOANED TO US OR INVESTED IN US. TO DO THAT, WE HAVE TO SELL 70% OF OUR COMPANY, ABOUT 75,000 EMPLOYEES WILL WIND UP WORKING WITH SOMEONE ELSE. YOU HAVE TO KEEP THE PEOPLE IN PLACE.YOU HAVE TO KEEP THE BUSINESSES RUNNING WELL. IF YOU DON'T USE RETENTION BONUSES, THOSE PEOPLE ARE SOME OF THE BEST IN THE INSURANCE INDUSTRY. THEY WILL GO ELSEWHERE AND WE WON'T HAVE ANYTHING TO SELL OR WE WON'T GET THE VALUE WE NEED.

Kernen: HE SAID, INITIALLY, HE SEEMS TO THINK THAT YOU HAVE BEEN DISASSEMBLING, OR HE SAYS LYING.I DON'T KNOW WHETHER THAT WAS THE REASON THAT YOU CANCELED ON A MEETING WITH THE CONGRESSMAN LAST WEEK. YOU MENTIONED TV APPEARANCES, WERE YOU TALKING ABOUT TV APPEARANCES ON THE SHOW WHERE HE USED SOME OF THAT LANGUAGE? OR ARE YOU TALKING ABOUT IN GENERAL?

Liddy: WELL, I'M NOT SURE WHAT THE LANGUAGE APPLIES TO. WE HAD A MEETING SET UP LAST THURSDAY WITH THE CONGRESSMAN. IT IS NOT OUR INTENT TO FRUSTRATE HIM. WE HAVE SO MANY REQUESTS FROM PEOPLE IN CONGRESS. WE ARE HAVING A HARD TIME KEEPING UP, BUT I GOT A LETTER ON TUESDAY ASKING FOR MORE INFORMATION, WHICH SIMPLY WE COULDN'T PROVIDE THE INFORMATION IN TIME FOR A MEETING ON THURSDAY. I DIDN'T WANT TO FRUSTRATE HIM BY BEING DOWN THERE AGAIN.WE THOUGHT THE BETTER PART OF VALOR WAS TO RESCHEDULE WHEN WE HAD ANSWERS. WE DISCLOSED EVERY BONUS WE HAVE PROVIDED. EVERY RETENTION RANGE WE HAVE PROVIDED IN A PRESS RELEASE OR IN A 10Q OR THE 8K LIKE WE ARE EXPECTED TO. WE ARE DOING EVERYTHING IN A VERY TRANSPARENT WAY.

CNBC's Becky Quick: HAS IT CAUGHT YOU BY SURPRISE TO HEAR CONGRESSMAN CUMMINGS AND OTHERS WHO HAVE COME OUT AND RAILED ON WHAT'S GOING ON HERE. YOU HAVE HAD CONVERSATIONS WITH HIM BEFORE. WERE YOU SURPRISED?

Liddy: I WAS SURPRISED. WE ARE TRYING TO BE AS TRANSPARENT AS WE CAN. AIG, WE HAVE 116,000 EMPLOYEES, NONE OF THEM CAUSED THE DISTRESS AIG IS IN, BUT THEY ARE GOING TO SOLVE IT. KEEPING THOSE PEOPLE IN PLACE, BOTH THE UNITS THAT WILL BE SOLD AND THE UNITS THAT WE ARE GOING TO RETAIN, IF WE DON'T DO THAT, WE CAN'T PAY BACK THE FEDERAL GOVERNMENT. I THINK WE ARE THE ONLY COMPANY OUT THERE THAT CONSISTENTLY SAYS WE ARE GOING TO PAY BACK OUR BILLS. IF WE OWE THE FEDERAL GOVERNMENT MONEY, WE WANT TO PAY IT BACK.

Kernen: ALL RIGHT. HE SAID, AT FIRST I DIDN'T THINK HE KNEW ABOUT THE 168 PEOPLE, BUT IT IS 168 AND 400 MILLION IN BONUSES? YOU SAID, THAT'S NOT ALL. THAT'S THE FIRST BUNCH.

Liddy: YEAH.

Kernen: HOW MANY MORE?

Liddy: IN TOTAL IT WAS ABOUT 2,000 PEOPLE. THE NUMBERS GET MUCH LESS AS YOU GO DOWN AND ADD MORE PEOPLE TO IT.

Kernen: WHERE WAS THIS DISCLOSED? IN A 10-Q?

Liddy: THERE IS A PRESS RELEASE ON IT AND IN A 10-Q.

Kernen: DID CONGRESSMAN CUMMINGS HAVE A PIECE OF PAPER TO SEE THE NUMBERS AND THE FIGURES?

Liddy: I DON'T KNOW THE ANSWER TO THAT. THE POINT OF THAT A MOMENT AGO WE WANT TO MAKE SURE WE LAY EVERYTHING OUT FOR HIM AND EVERYBODY ELSE IS ASKING THIS QUESTION ON ANY PIECE OF THE AIG RECOVERY.

Kernen: WHAT'S THE AVERAGE -- $400 MILLION DIVIDED BY 168, WHAT IS THAT NUMBER? IT'S A PRETTY BIG NUMBER.

Liddy: I DON'T KNOW.

Kernen: HE KEEPS COMING BACK TO HIS CONSTITUENTS, A LOT OF PEOPLE MAKE $20,000, HE MENTIONED 51% OF THE COUNTRY MAKES $50,000 OR LESS. HE HAS A PROBLEM, AND IT IS HARD FOR A LOT OF PEOPLE, THE SMELL TEST OF HUNDREDS OF THOUSANDS OF DOLLARS IN BONUSES GOING TO ANYONE WHEN YOU HAVE BAILED OUT A COMPANY, WHEN IT IS GOVERNMENT MONEY THAT SEEMS TO BE GOING FROM TAXPAYERS RIGHT INTO A $4 MILLION BONUS FOR SOME FAT CATS.

Liddy: WELL, I WOULD ENCOURAGE YOU TO LOOK AT THE END GAME. IF WE DON'T HAVE THE PEOPLE IN PLACE, AND THE BUSINESSES AREN'T PERFORMING WELL, WE CAN'T SELL THEM AND WE CAN'T PAY BACK THE FEDERAL GOVERNMENT. WE WANT TO PAY BACK THE FEDERAL GOVERNMENT. NOW, WITH RESPECT TO A LARGE BONUS, THERE ARE NOT MANY OF THOSE, AND THAT WOULD GO TO A PERSON PROBABLY RUNNING A BUSINESS THAT GENERATES $25 OR $30 BILLION IN REVENUE AND MAKES BETWEEN $2 AND $4 BILLION A YEAR. WE WANT THAT PERSON LOCKED IN PLACE.IN THE INSURANCE TRIINDUSTRY, WE ARE THE LARGEST IN THE UNITED STATES AND ONE OF THE LARGEST IN THE WORLD. WE HAVE THE BEST PEOPLE IN THE INDUSTRY. ANYBODY WHO WANTS TO START AN INSURANCE COMPANY OR BEEF UP THEIR POSITION OF THE CURRENT INSURANCE COMPANY, THEY WILL COME TO OUR ORGANIZATION AND PICK OFF OUR PEOPLE. IF THAT HAPPENS, WE CAN'T MAINTAIN THE BUSINESSES WE WANT TO KEEP AND WE WON'T BE ABLE TO SELL FOR THE KIND OF VALUES THAT WE NEED AND THE BUSINESSES WE WANT TO SELL, AND WE WON'T BE ABLE TO PAY BACK THE FEDERAL GOVERNMENT.

Quick: LET'S TALK ABOUT THAT. WHERE ARE YOU IN TERMS OF BEING ON TRACK FOR THIS PLAN? THE BUSINESSES THAT YOU HAVE FOR SALE, DO YOU HAVE PEOPLE COMING UP TO YOU WITH STRONG BIDS FOR SOME OF THE BUSINESSES?

Liddy: WE DO. WE ARE ENCOURAGED BY THE LEVEL OF INTEREST. WE ANNOUNCED THIS MORNING THE SELL OF HARTFORD STEAM BOILER.

Kernen: FOR HOW MUCH?

Liddy: IN TOTAL IT IS ABOUT $825 MILLION IN VALUE. THE BUSINESSES THAT ARE SINGULR IN NATURE OR GENERALLY ONLY DEALING WITH ONE COUNTRY, THEY WILL GET SOLD FIRST. AS YOU MOVE UPSTREAM AND GET TO THE LARGEST BUSINESSES, AND THOSE WHO DO BUSINESS IN TEN OR 15 OR 20 COUNTRIES, THEY TAKE MORE FROM A DUE DILIGENCE STANDPOINT. VERY MUCH LIKE WE WERE, WE WISH THE CAPITAL MARKETS WERE MORE COOPERATIVE.

Kernen: THE JOURNAL SAYS IT WAS GOING TO BE SOLD BETWEEN $1.2 $1.5 AND YOU PAID $1.2.YOU WOULD BE LUCKY TO GET TO THAT. IS THAT AND APPLES TO APPLES COMPARISON ON THE $825? ARE YOU LOSING OVER $300 MILLION ON THE SALE?

Liddy: IT IS MORE COMPLICATED THAN YOU CAN IMAGINE.

Kernen: THE POINT IS THAT YOU ARE MAKING, A QUOTE FROM THE JOURNAL, TO SEEK THE DISPOSE OF THE ASSETS TO REPAY THE LOANS. THE COMPANY FACING THE DUAL WEAKNESS AND THE DEPRESSED ECONOMIC ENVIRONMENT. YOU ARE NOT GOING TO GET ANYWHERE CLOSE TO WHAT THEY ARE WORTH.

Liddy: I THINK THAT'S TOO STRONG OF A STATEMENT. IF WE SOLD THE ASSETS A YEAR OR TWO AGO, WOULD WE HAVE GOTTEN MORE? ABSOLUTELY. BUT SOME OF THE ASSETS, YOU CAN'T RECREATE TODAY.THEY ARE VALUABLE ASSETS. LIFE INSURANCE COMPANIES WELL POSITIONED AROUND THE GLOBE, OUR CHALLENGE RIGHT NOW, AS LIFE INSURANCE COMPANIES ARE SELLING AT .5% OR .6% FOR THEIR BOOK VALUE, WE WANT TO GET SUBSTANTIALLY MORE THAN THAT FOR THE BUSINESSES WE ARE SELLING. WE THINK WE CAN GET A GOOD DEMAND FOR THE ASSETS. WE'LL KNOW OVER TIME.

Kernen: ALSO THE JOURNAL SINCE THE RESCUE, DOZENS OF EXECUTIVES AND UNDERWRITERS HAVE JUMPED TO RIVALS AND THE SALES OF KEY PRODUCTS HAVE FALLEN SIGNIFICANTLY.

Liddy: DOZENS IS TOO LARGE A NUMBER. WE HAVE LOST SOME FOLKS. THAT'S WHY YOU NEED THE RETENTION PROGRAMS TO NOT LOSE MORE PEOPLE. TYPICALLY, WHAT HAPPENS WHEN A FINANCE SERVICE COMPANY RUNS INTO TROUBLE, THE SALE OF NEW PRODUCTS WILL BE SESTEMIC FOR A WHILE. ONCE WE RENEGOTIATED WITH THE FEDERAL GOVERNMENT BACK IN NOVEMBER, A LOT OF THAT HAS OPENED UP AGAIN. MAKE NO MISTAKE ABOUT IT. THIS IS A DIFFICULT CHALLENGE FOR AIG TO KEEP THE BUSINESSES ALIVE AND AFLOAT AND TO SELL THE BUSINESSES WE WANT TO SELL. THAT'S WHY THINGS LIKE RETENTION PROGRAMS, TREATING PEOPLE WELL IS VITAL. IF WE DON'T DO THAT, WE WILL NOT BE ABLE TO PAY BACK THE FEDERAL GOVERNMENT.

Quick: YOU SAY THAT YOU BELIEVE YOU CAN PAY BACK THE FEDERAL GOVERNMENT FOR ALL THE TAXPAYER MONEY THAT YOU BORROWED. WHEN DO YOU THINK, WHEN IS YOUR BEST ESTIMATE TO DO THAT?

Liddy: WE WOULD LIKE TO DO THAT IN 2009.AGAIN, ONE THING WITH FINANCIAL SERVICE COMPANIES IS THEY CAN ATROPY IF YOU ARE NOT CAREFUL. WE THINK IT IS IMPORTANT THAT THE BUSINESS UNITS TO BE SOLD GET SOLD FOR AS MUCH VALUE AS WE CAN, AND WE PAY BACK THE FEDERAL GOVERMENT.THE SOONER WIL DO THAT, THE REMAINING BUSINESSES WILL BE BETTER OFF AND BUSINESSES SOLD WILL BE BETTER OFF IN THE HANDS OF NEW OWNERS.

Kernen: DOES IT FEEL LIKE A NEW BROKER ON WALL STREET WITH A BOOK OF CLIENTS WITH $150 MILLION OR WHATEVER, IS IT SIMILAR -- THESE GUYS THAT YOU WOULD PAY, LET'S SAY, A SIGNIFICANT BONUS TO, DO THEY HAVE A BOOK OF CLIENTS, AND IF THEY LEAVE, CAN THEY BRING THE BOOK WITH THEM? OR IS IT EXPERTISE IN THE BOOK OF RISK MANAGEMENT TO MAKE THEM MORE VALUABLE ?

Liddy: IT IS SOMEONE WHO UNDERSTANDS RISK AND CAN LOOK AT A BUILDING LIKE THIS ONE WE ARE IN AND DETERMINE, WELL, IF YOU ARE GOING TO INSURE THAT, WHAT WOULD YOU CHARGE? HOW GOOD IS THE CHARGE? WHAT'S THE RISK THAT SOMETHING COULD HAPPEN TO IT? IT'S THE INTELLECTUAL CAPITAL SO VITAL TO THIS COMPANY AND THE INDUSTRY THAT WE WANT TO CONTINUE.

Kernen: YOU CAN SEE, AT THIS POINT, THE KIND OF -- IN THIS ENVIRONMENT, AND YOU ARE DEALING WITH CONGRESS NOW, YOU CAN SEE WHAT YOU ARE GOING TO BE UP AGAINST IN TRYING TO PAY THE BONUSES AND RETAINING THE PEOPLE AND TRYING TO CONTINUE TO RUN AIG AS A PROFITABLE CONCERN. YOU HAVE CONGRESS ALL OVER YOU NOW THAT YOU TOOK THIS, YOU KNOW, THE BAILOUT. CAN YOU RUN IT EFFECTIVELY? I MEAN, YOU ARE GOING TO HAVE TO STAND UP FOR THIS. IT WILL BE RAINING DOWN ON YOU FOR A DOLLAR A YEAR. THAT'S ALL YOU ARE MAKING. WHY?

Liddy: YOU KNOW, THERE ARE SOME DAYS WHEN I ASK MYSELF THAT QUESTION. LISTEN, I THINK LIFE IS PRETTY SIMPLE. IF YOU CAN HELP, YOU SHOULD HELP. YOU CAN STAND ON THE SIDE LINES AND BE AN OBSERVER OR GET IN THE GAME AND HELP. I WAS ASKED BY THE FEDERAL GOVERNMENT ABOUT 90 DAYS AGO TO SEE IF I COULD HELP STABILIZE AIG.WE HAVE DONE THAT. AIG DID NOT GO BANKRUPT, SO ALL THE COUNTERPARTIES WE HAVE AND ALL THE INTERMESHING WE HAVE OF DERIVATIVE PRODUCTS AND ALL THAT ELSE, ALL THAT HAS STABILIZED. AIG HAS STABILIZED. WE HAVE MADE GOOD PROGRESS. NOW WE ARE IN PHASE TWO, CAPITAL CHAPTER TWO. SELL THE ASSETS AND PAY BACK THE LOAN. WE HAVE A CADRE OF PEOPLE AT AIG WHO BELIEVE IN DOING THE RIGHT THING. IT IS NOT EASY. IT WOULD BE HELPFUL IF MORE PEOPLE UNDERSTOOD WHAT WE WERE TRYING TO DO AND ON OUR SIDE, BUT LIFE IS WHAT LIFE IS. YOU HAVE TO PLAY THE HAND THAT YOU ARE DEALT. WE ARE GOING TO BE ONE OF THE COMPANIES THAT DISTINGUISHES ITSELF. THE 116,000 AT AIG DIDN'T CAUSE THIS PROBLEM. THEY ARE GOING TO SOLVE THE PROBLEM. THEY ARE GOING TO SELL OUR ASSETS AND WE ARE GOING TO PAY BACK THE FEDERAL GOVERNMENT.

Kernen: YOU ARE NOT GOING TO BE ABLE TO RUN IT, IF YOU ARE GOING TO HAVE A SEMINAR LIKE YOU USED TO, YOU BETTER NOT HAVE IT AT RITZ-CARLTON. YOU BETTER HAVE IT AT A DAYS INN OR WORSE. I JUST THINK OF ALL THE CONSTRAINTS THAT ARE GOING TO BE PUT ON YOU. IT IS ALMOST A LESSON FOR IF YOU CAN ABSOLUTELY AVOID GOVERNMENT HELP, YOU SHOULD, BECAUSE THEY ARE GOING TO TRY TO RUN THE COMPANY AND THEY DON'T KNOW HOW TO RUN IT.

Liddy: IT IS REALLY WHY WE ARE WELL SERVED AND THE TAXPAYERS ARE WELL SERVED TO REPAY THE LOANS AS QUICKLY AS WE CAN AND TO REDEEM THE PREFERRED STOCK. YOU KNOW, A COUPLE EVENTS WE HAD WERE FOR INDEPENDENT CONTRACTORS, THEY WERE NOT FOR OUR EMPLOYEES.

Kernen: YOU ARE NOT DOING THAT ANY MORE, ARE YOU?

Liddy: NO. BUT OVER TIME THAT WILL HURT YOU, AN INDEPENDENT AGENT CAN SELL OUR PRODUCT OR SOMEBODY ELSE'S PRODUCT.

Kernen: YOU NEED TO STAND UP TO CONGRESS SAYING WE NEED TO KEEP DOING THESE? YOU ROLLED OVER AND SAID WE WON'T DO THESE.

Liddy: THERE MAY COME A POINT IN TIME WHEN WE NEED TO DO EXACTLY THAT. THE BETTER PART OF VALOR WOULD BE TO SELL OUR GOOD ASSETS AT GOOD VALUES AND PAY DOWN THE DEBT TO GET BACK TO RUNNING OUR BUSINESS THE WAY WE WANT TO. WHAT'S THE BIGGEST ISSUE,

Quick: WHAT"S YOUR BIGGEST CONCERN RIGHT NOW? WORRYING ABOUT THE CAPITAL MARKETS OR THE EXISTING BUSINESSES THAT YOU WANT TO KEEP? IS IT WORRYING ABOUT TALKING TO CONGRESS AND PEOPLE IN WASHINGTON?

Liddy: I WOULD SAY ALL THREE OF THOSE. IT IS HARD TO CHOOSE BETWEEN THEM. ALL THREE ARE A VITAL PART OF MY DAY. IF THE CAPITAL MARKETS LOOSENED UP A LITTLE, IT WOULD MAKE THE INCREDIBLE CHALLENGE AIG FACES EASIER. I WOULD PUT THAT NUMBER ONE ON THE LIST, BUT ONE B AND C WOULD BE THE OTHER THING.

Kernen: WHERE WAS THE LOSS? HOW MUCH WAS IT IN DERIVATIVES THAT THE COMPANY WAS ON THE WRONG SIDE OF -- WHO PUT THE TRADE ON? WAS IT BEFORE YOU GOT THERE?

Liddy: I HAVE BEEN THERE FOR 90 DAYS. THE TRADES GO BACK TO 2002, 2003, 2005, AND THEY ARE MULTIPLE TRADES. IT IS NOT JUST ONE THING. THE COMPANY OVERINVESTED IN A NUMBER OF AREAS, PRIMARILY THE AAA RATED SECURITIES THAT WERE NOT AAA-RATED SECURITIES.

Quick: I THINK PEOPLE WERE SURPRISED BY THE AMOUNT OF MONEY AIG HAS CONTINUED TO NEED AFTER THE FIRST BUNCH WAS GRANTED. CAN YOU GUARANTEE AIG WON'T NEED MORE MONEY FROM THE GOVERNMENT AT THIS POINT?

Liddy: THE ONLY GUARANTEES YOU CAN GIVE IS DEPENDENT ON THE CAPITAL MARKETS.IF THEY STAY WHERE THEY ARE, WE'LL BE FINE. IF THE CAPITAL MARKETS AND THE CREDIT MARKETS WERE TO CONTINUE TO DETERIORATE, IT IS ANYBODY'S GUESS AS TO WHAT WILL HAPPEN. I LIKE WHERE WE ARE AND THINK WE CAN GET BY ON WHAT WE SET UP.

Kernen: HOW MUCH MORE WOULD YOU TAKE BEFORE WE SAY, YOU SAY, I'M OUT OF HERE.YOU WON'T BE ABLE TO RUN THIS, AS YOU CAN SEE, IF YOU SAID, 'I'VE ONLY BEEN HERE 90 DAYS. I'M NOT TRYING TO ENRICH MY FRIENDS WITH THESE BONUSES. I'M HERE TO TRY TO SAVE THE COMPANY MAKING $1 A YEAR. YOU NEED TO GIVE ME THE FREEDOM AS THE CEO, IF YOU ARE GOING TO GET TAXPAYER MONEY BACK, I NEED TO SEE THEM TO BE ABLE TO RUN THIS COMPANY AS I SEE FIT.'

Liddy: THAT'S CHAPTER ONE OF MY OWN STORY. SOME PEOPLE UNDERSTAND THAT AND EMBRACE IT OTHERS DON'T. I NEED TO GET BACK DOWN TO WASHINGTON AND TALK TO REPRESENTATIVE CUMMINGS.

Kernen: WHEN IS THAT GOING TO HAPPEN?

Liddy: RIGHT AFTER THE FIRST OF THE YEAR. I DON'T KNOW WHETHER WE'VE PICKED AN EXACT DATE. BUT AS SOON AS POSSIBLE AFTER THE FIRST OF THE YEAR.

Kernen: I GUESS THE BEST LESSON HERE IS TO NOT BE NATIONALIZED OR ANYTHING CLOSE TO IT BY THE FEDERAL GOVERNMENT BECAUSE YOU ARE NOT GOING TO BE ABLE TO RUN THE BUSINESSES THAT NEED TO BE RUN.

Liddy: TWO LESSONS. ONE, SOMETIMES NO GOOD DEED GOES UNPUNISHED. REAL TRUTH IS IN THAT, BUT THE AMERICAN TAXPAYER, WHEN THEY GET NERVOUS, ANYBODY WHO TAKES MONEY, I THINK THEY GET UPSET ABOUT IT. WE NEED TO GET BACK TO BEING A PUBLIC COMPANY, NOT BEYOND THE DOLE, IF YOU WILL, FROM THE FEDERAL GOVERNMENT AND WE NEED TO DO THAT AS QUICKLY AS POSSIBLE. IT IS GOOD FOR THE TAXPAYER AND THE COMPANY.

Kernen: EVERY AD YOU RUN NOW THAT COSTS MONEY, EVERY DECISION YOU MAKE COULD BE SECOND GUESSED NOW BY CONGRESS.

Liddy: YES, YOU STILL HAVE TO RUN THE BUSINESS. WE HAVE VERY TALENTED PEOPLE AT AIG. YOU HAVE TO RUN THE BUSINESS IF YOU WANT TO KEEP THE BUSINESSES ALIVE AND HAVE SOMETHING GOING FORWARD.

Quick: ALL RIGHT.MR. LIDDY, THANK YOU VERY MUCH FOR COMING IN TODAY. WE APPRECIATE IT.



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