Asks Tough Questions on Bonuses Paid Out with Tax Payer Money

Washington, DC – Today, Congressman Joe Baca (D-Rialto) questioned AIG Chief Executive Officer Edward Liddy on the $165 million in federal TARP funds that the insurance giant paid out in retention bonuses to some of its highest ranking executives.  In his role as a Member of the House Financial Services Committee and the Subcommittee on Capital Markets, Congressman Baca is in a position to make sure his constituents and the American people learn the truth behind this misuse of taxpayer dollars.

“The American people deserve to know what happens to their tax dollars,” said Rep. Baca.  “That AIG spent $165 million of federal bailout funds our government lent them on bonuses to many of the same people who caused this economic crisis is absolutely dumbfounding.  This is a gross violation of the public trust and a visible example of greed at its very worst.  AIG must do the right thing, and return this money immediately.”

Rep. Baca spoke earlier today at a hearing of the House Financial Services Subcommittee on Capital Markets, examining AIG’s use of the federal TARP funds they have received.  In addition to Edward Liddy, other witnesses at the hearing included Scott Polakoff, the Acting Director of the Office of Thrift Supervision, Joe Ario, the Insurance Commissioner for the State of Pennsylvania, and Ms. Orice Williams, the Director of Financial Markets with the Government Accountability Office. 
 
“In California, 26,000 teachers are expected to receive pink slips in March alone,” concluded Rep. Baca.  “These AIG executives are getting $165 million in retention bonuses, when we don’t even have enough money to retain our teachers, who have sacrificed so much to educate our children.  Our teachers in California have done great work – yet they don’t get any bonuses!  They get pink slips!  How many of these teachers’ jobs could have been saved with that same $165 million that went in bonuses to AIG executives?  If AIG has any remorse for their disgraceful behavior, they must act quickly to give this money back.”