March 17, 2009: 03:31 PM ET
(Updates with comments from senators and Liddy meeting lawmakers Tuesday.)
WASHINGTON -(Dow Jones)- Senate Democrats Tuesday were preparing legislation that would levy up to a 91% excise tax on the bonuses paid to executives at American International Group Inc. (AIG) that have stirred outrage.
In a letter sent to Edward Liddy, AIG’s chairman and chief executive, 10 Democratic senators urged him to renegotiate the $165 million paid out in bonuses to executives at the company’s troubled financial products division.
If not, the letter said, lawmakers wouldn’t hesitate to recoup the bonuses through legislation.
