If you could ask AIG CEO Edward Libby a question, what would it be? Sound too good to be true? Think again.

Tomorrow, March 18^th, 10 am, EST, the House Financial Services Subcommittee, Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, is holding a hearing, American International Group’s Impact on the Global Economy: Before, During, and After Federal Intervention.

Congressman Paul E. Kanjorski (D-PA), Chairman of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, today announced that the Subcommittee will hold a hearing to fully examine the American International Group (AIG), how it got into its current situation, why it has received so much federal assistance, and how to move forward.

“The federal government has provided AIG with access to well over $150 billion in federal aid to protect the global economy,” said Chairman Kanjorski. “Unfortunately, taxpayers do not understand how AIG ended up in such a terrible situation, nor do they understand why the federal government continues to give it money. We must assess AIG’s progress, as well as how we move forward to ensure that any taxpayer money AIG receives is spent efficiently and effectively.”

Look who is testifying!

• Mr. Edward M. Liddy, Chairman and Chief Executive Officer, American International Group
• Mr. Rodney Clark, Managing Director, Insurance Ratings, Standard & Poor’s

So, please post in the comments what you would ask either of these people.

Here is what I would ask:

1. Are you winding down CDS, CDO, CLO issuances, new sales?
2. Have you fired anyone in the London financial instruments division?
3. Recently AIG released a memo claiming systemic risk. Yet, the recent payout disclosures imply CDS payouts to other parties is the real use of TARP funds and the traditional regulated insurance business of AIG is secure, stable and profitable.
• Isn't it true one can avoid systemic risk by breaking up AIG into the profitable, stable businesses and isolate the derivatives products division?
• Where is the proof that allowing these derivatives, CDSes, CDO, CLOs to not be paid out would cause massive systemic risk to the point of global economic collapse? Isn't this document just a little too close to a scare tactic?
4. Have you done an internal audit and review of your London financial instruments division? Will you make these results public?
5. What are you doing to remove collateral triggers?
6. Many of your payout counter parties are TARP recipients. Has their been any negotiation to a percentage of the original payout obligation in order to reduce the cost to taxpayers?
7. Who approved some of these structured financial investment vehicles, like CDSes, CDOs, CLOs in the first place? What have you done to clean up AIG from these fraudulent vehicles and bad practices?

Ask your questions in the comments. Seriously, you just don't know who will read your post and if you do not ask, you will not be heard.

Update: One can watch the hearing on CSPAN. One piece of information is Libby claims the entire risk of the fictional derivatives out of the London Financial Branch has been reduced from $2.7 trillion dollars to $1.6 trillion dollars.
That is a key element in this mess, beyond the fact payouts look like a circle jerk on these various financial instruments, but to wind down those beyond belief stupid, fictional derivative based structured finance vehicles.

More later.