[Congressional Record (Bound Edition), Volume 155 (2009), Part 6]
[House]
[Pages 7342-7343]
[From the U.S. Government Publishing Office, www.gpo.gov]




                              AIG BONUSES

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from North Carolina (Mr. Jones) is recognized for 5 minutes.
  Mr. JONES. Mr. Speaker, to date, the Federal Government has given 
American International Group, AIG, $173 billion in bailout funds.
  AIG, which is now 80 percent owned by the American taxpayer, posted a 
record $62 billion loss in the fourth quarter of 2008. And that's why 
this week the American people were outraged to hear that AIG would be 
paying out $165 million in bonuses, courtesy of the United States 
taxpayer.
  To add insult to injury, the bulk of the payments are going to 
employees of AIG Financial Products, the unit of the company that sold 
the risky contracts that caused massive losses for AIG. The American 
people are angry and frustrated. They want to know why are we giving 
taxpayer money to failing companies so they can hand out bonuses?
  Mr. Speaker, last fall I voted against this $700 billion government 
bailout because I do not believe American taxpayers should pick up the 
tab for the poor business decisions and greed of high-flying Wall 
Street firms. Because

[[Page 7343]]

the bailout was authorized, every American taxpayer has an interest in 
ensuring that the U.S. Treasury does not recklessly squander their 
hard-earned money.
  And the Secretary of the Treasury, Henry Paulson, as former CEO of 
Goldman Sachs, allowed Lehman Brothers to fail, but AIG got a bailout. 
AIG went on to pay out $13 billion of that Federal aid to trading 
partner Goldman Sachs.
  And now, thanks to the American taxpayer, AIG is still doling out 
hundreds of millions of dollars in employee benefits and retention pay. 
To the taxpayers who are footing the bill, the Federal Government's 
selection of winners and losers just does not meet the smell test.
  The lack of oversight in the process is outrageous. Employees in 
eastern North Carolina, which I have the privilege to represent, are 
not rewarded bonuses when their companies lose money.
  Constituents in my district want to know why should the employees of 
Wall Street be any different? I join the American taxpayers in their 
frustration. I pay taxes, and I'm frustrated too.
  Unfortunately, all we hear from AIG chairman Ed Liddy is that AIG's 
hands are tied because these bonuses are based on binding contracts 
that were made before the government bailout. Well, Mr. Speaker, this 
Congress and the current administration better make sure that no 
further corporate bonuses are paid for with taxpayers' money.
  I thank President Obama for speaking out so clearly and plainly about 
these retention bonuses because, like those of us in Congress, he has 
been hearing from frustrated taxpayers. I call on the Federal 
Government to explore every legal option available to block these 
excessive and undeserved bonuses on behalf of the taxpayers of America.
  And in closing, Mr. Speaker, I ask God to continue to bless our men 
and women in uniform and their families, and may God continue to bless 
America.

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