G20 ministers say they'll do what it takes
HORSHAM, England, March 14 (UPI) -- The finance ministers of the Group of 20 promised after a meeting Saturday near London "to take whatever action is necessary" to repair the global economy.
The statement was lacking in specifics and seemed designed to present a united front despite key differences on strategy, The New York Times reported.
The meeting at a resort hotel in Horsham, 31 miles south of London, was in preparation for the summit meeting April 2 in London. The G20 includes the Group of Eight major economic powers plus growing economies like Brazil, China and India, and collectively includes 85 percent of the world economy.
European officials tend to advocate more regulation, while U.S. officials favor stimulus spending.
"We have taken decisive coordinated and comprehensive action to boost demand and jobs, and we are prepared to take whatever action is necessary until growth is restored," the statement said.
British Chancellor of the Exchequer Alistair Darling said failure to take coordinated global action will make the recession worse.
"The world is looking to see what the world as a whole can collectively sign up to, to take action that will make a difference to restoring confidence," Darling told the BBC.
Darling called on the major economies to commit to more stimulus spending if necessary, while German and French officials have said the focus should be on regulatory reform rather than "spending even more."
Geithner: Strong action needed
HORSHAM, England, March 14 (UPI) -- U.S. Treasury Secretary Timothy Geithner emphasized the need for strong action after meeting Saturday with Group of 20 finance ministers in Britain.
"You are seeing the world move together at a speed and on a scale without precedent in modern times," Geithner said. "All the major economies are putting in place substantial fiscal packages. The stronger the response, the quicker recovery will come. That is why the United States has passed the largest, most comprehensive recovery package in decades."
While there is a U.S.-European split on whether the emphasis should be on regulatory reform or on economic stimulus, Geithner said the two go together.
"We have a strong consensus on the need for both recovery and reform so that we never face a crisis like this again," he said.
AIG giving millions in bonuses
WASHINGTON, March 14 (UPI) -- American International Group Inc., which has received $170 billion in U.S. aid, is handing out millions in bonuses, The Washington Post reported Saturday.
After getting an angry telephone call Wednesday from Treasury Secretary Timothy Geithner, AIG Chairman and Chief Executive Edward Liddy wrote to Geithner that the insurance giant was distributing the bonuses because it risked lawsuits if it violated employee contracts. Liddy argued in the letter that bonuses might be needed to keep critical employees.
AIG did agree to make changes in $9.6 million in bonuses to the 50 most senior employees, including Liddy. The seven at the top of the totem pole have agreed to receive no bonuses.
For the next 43, half the bonus is to be deferred, with 25 percent paid July 15 and the remainder Sept. 15 if the company meets its restructuring goals. Other employees, down the line, are to get their full bonuses.
AIG almost collapsed in September because of the sale of credit default swaps by the company's London unit.
JAL plane makes safe emergency landing
SHANGHAI, March 14 (UPI) -- A Japan Airlines jetliner landed safely at a Shanghai airport Saturday shortly after hitting birds while taking off from another airport, JAL said.
Tokyo-bound Flight JL8878, carrying 208 passengers and 14 crew members, took off from Hongqiao airport about 2 p.m. and landed at Pudong airport at 3:14 p.m., Kyodo news agency reported. No injuries were reported.
The airline said the emergency landing took place after abnormal vibration was detected in one of the four engines about 10 minutes into the flight, China's state-run Xinhua news agency reported.
An initial investigation indicated the aircraft had hit birds after take-off. Airport sources said the plane was being repaired, Xinhua said.
About 70 passengers had been rerouted on other flights by 8 p.m. and the rest were expected to resume their travels Sunday.
