Question of the Week: AIG
These questions are culled from phone calls, letters, faxes and e-mails sent to my Thousand Oaks, Solvang, and Washington offices. Each week I will add another question and answer.
Week of March 20, 2009
• Question: I am outraged about the recent revelation that the American International Group (AIG) paid executives $165 million in bonuses after receiving over $170 billion in aid from the Federal Government. What is your position?
→ Answer: First of all, let me assure you that I share your outrage over AIG using taxpayer money to award executive bonuses during this economic crisis. These actions by AIG merely reinforce my reasoning for voting against all the bailouts of companies like AIG.
On March 19, 2009, in an attempt to recoup this bonus money from AIG executives, the House of Representatives, with my support, passed legislation that would impose a new 90 percent tax on bonuses received by employees of certain companies, including AIG, that have received funds from the government’s Toxic Assets Relief Program (TARP).
It is crucial that the American people trust the actions of the U.S. Treasury. Our focus must be on helping “Main Street,” not Wall Street. These AIG bonuses provide a clear example of the problems with the $750 billion TARP bailout, which I voted against three times. This program did not include sufficient reforms. It merely gave out taxpayer money without any strings attached. Please be assured that I will continue to monitor this situation and fight for the proper use of America’s taxpayer dollars.
For more information about my positions on the economic crisis, see my Economy: Newsroom page.
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