Bill Holds AIG, Other Companies Accountable for Bonuses Paid to Employees

Washington, DC – Today, Congressman Joe Baca (D-Rialto) joined a bipartisan majority in the House of Representatives to pass legislation that will hold companies that received federal TARP dollars, like AIG, accountable for the bonuses that were paid to their executives.  H.R. 1586, the Bonus Recoupment Tax bill, passed the House of Representatives with a 328 – 93 vote.

“The $165 million in federal funds that AIG gave to its top executives is an extraordinary abuse of the public trust,” said Rep. Baca.  “It is unbelievable that at the same time AIG was receiving billions of dollars in federal funds just to stay solvent, they spent hundreds of millions on bonuses to the same individuals who mismanaged the company into near bankruptcy.  Any executive who received a bonus from federal TARP funds should voluntarily return it, but if they refuse to do so it is our job in Congress to make sure the American taxpayers are repaid.”

Yesterday, Rep. Baca spoke at a hearing of the House Financial Services Subcommittee on Capital Markets, examining AIG’s use of the federal TARP funds they have received.  At the Subcommittee hearing, Rep. Baca had an opportunity to question AIG Chief Executive Officer Edward Liddy, in regards to the $165 million in federal TARP funds that the insurance giant paid out in retention bonuses to some of its highest ranking executives.
 
“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.”