PRESS RELEASE

Capuano Urges Administration to Stop TARP Recipients from Paying Out Big Bonuses

January 22, 2010

Today, Rep. Mike Capuano and fifteen of his House colleagues wrote to Kenneth Feinberg, Pay Czar of the Troubled Relief Asset Program (TARP), and Timothy Geithner, Secretary of the U.S. Treasury, to urge them to prohibit TARP recipients who still owe money to taxpayers from paying out big bonuses.

In the letter [PDF], Members asked the Administration to explain how the compensation rules they issued were “sufficient in stopping TARP recipients from paying out excessive bonuses.” Recent reports indicate that AIG, which received $185 billion in TARP assistance last year, is planning to pay out big bonuses again in March. Rep. Capuano urged the Administration to retract TARP funds from institutions that award bonuses while still owing taxpayers. “These institutions clearly no longer need taxpayer support,” wrote the Members in reference to companies that still hold TARP dollars.

"This is insulting to taxpayers who are struggling to make ends meet for their own families,” said Rep. Capuano. "And it shows what these firms think of Treasury’s so-called “enforcement” up to this date.”

The following members co-signed the letter: Rep. Tammy Baldwin, Rep. Bill Pascrell, Jr., Rep. Russ Carnahan, Rep. Mary Jo Kilroy, Rep. Paul E. Kanjorski, Rep. Gary C. Peters, Rep. Peter Welch, Rep. Luis V. Gutierrez, Rep. Paul W. Hodes, Rep. Sam Farr, Rep. Dennis Moore, Rep. Dana Rohrabacher, Rep. Stephen F. Lynch, Rep. Gwen Moore, and Rep. Steve Driehaus.

Contact: Alison M. Mills 617-621-6208