American International Group moved to pay its executives $165 million in bonuses the troubled insurance giant claimed it was contractually obligated to distribute by Sunday's deadline. During TV appearances, however, Larry Summers, the president's chief economic adviser, called the bonuses "outrageous," and Rep. Barney Frank, chairman of the House Financial Services Committee, said the government should find out if they are legally recoverable. AIG has received $170 billion in federal bailout funds.
Former Vice President Dick Cheney says he deeply disagreed with George W. Bush's decision to not pardon "Scooter" Libby, Cheney's ex-chief of staff, he told CNN Sunday. Bush commuted Libby's sentence, but did not erase his conviction on perjury and obstruction of justice charges in outing CIA operative Valerie Plame's identity.
US combat troops in Iraq will not "forsake" security operations even after a pullback to bases outside Baghdad and other cities, Brig. Gen. Frederick Rudesheim, a deputy commander for American forces in Baghdad, said Sunday. In carrying out the first step of a full withdrawal by 2011, he said troops would be positioned to stop militants in rural areas.