[Congressional Record Volume 155, Number 49 (Monday, March 23, 2009)]
[Extensions of Remarks]
[Pages E735-E736]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     TAXPAYER FUNDED BONUSES AT AIG

                                 ______
                                 

                          HON. BETTY McCOLLUM

                              of minnesota

                    in the house of representatives

                         Monday, March 23, 2009

  Ms. McCOLLUM. Madam Speaker, I rise today to add my voice in 
opposition to plans by American International Group Inc. (AIG) to 
reward their executives with ``job performance'' bonuses worth over 
$165 million at a time when the American people, including my 
constituents in Minnesota, are making huge sacrifices to make ends 
meet.
  Yesterday, I joined my colleagues in co-signing a letter to Treasury 
Secretary Timothy Geithner to express my objection to AIG's payment of 
these ill-timed executive bonuses.
  I want to go further and call on the Administration to repeal AIG's 
latest federal stabilization infusion of $30 billion until they 
retrieve the $165 million in bonuses, provide assurances that bonuses 
will no longer be disbursed without Congressional oversight and agree 
to turn over regular disclosure forms to account for how taxpayer funds 
are being used.
  We must demand the highest level of transparency and accountability, 
especially since American taxpayers have provided over $170 billion in 
funding to AIG and control approximately 80 percent of the company.
  The purpose of the funds is to stabilize and prevent the devastating 
collapse of the financial markets, not to reward executives whose 
performance deserves an ``F'' grade for their failure to protect 
investors and consumers.
  For traders--whose recklessness and greed greatly contributed to the 
financial crisis--to think they can profit at the expense of the 
taxpayers is unconscionable.
  This latest irresponsible act by AIG has further compromised the 
public trust.
  I am pleased that President Obama has responded so quickly by 
pursuing every legal avenue to block these bonuses. Like the President, 
who yesterday expressed that he is ``choked up with anger,'' I am angry 
and so are the millions of families bearing the brunt of the economic 
meltdown.
  These monies must be recovered immediately and AIG must provide 
documentation as to which executives were to receive the bonuses so we 
can determine if these awards violate recently enacted federal 
restrictions.
  In January, I voted for House passage of H.R. 384, the TARP Reform 
and Accountability Act, to strengthen accountability and oversight of 
the Troubled Asset Relief Program and require tough, sensible 
restrictions on executive pay.
  And recently, Congress passed the American Reinvestment and Recovery 
Act, which President Obama signed into law, to curb

[[Page E736]]

multi-million dollar packages and limit bonuses.
  We must work closely with the Obama Administration to rigorously 
enforce these requirements and close potential loopholes so that 
taxpayers are protected.

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