"The American people have had enough of this kind of recklessness.  Enough is enough."

March 17, 2009 - Congressman Trent Franks (AZ-02) gave the following remarks today in response to reports that AIG executives will be receiving "performance-based," taxpayer-funded bonuses, to the tune of $165 million: 

“The American people are rightfully outraged that many of the executives who got AIG into the mess it is in are being rewarded for bad decisions, and handing taxpayers the bill." Franks stated.  "Again and again, we are seeing a stampede of government bailouts to prop up institutions that have made extremely poor and often deliberately risky investment decisions,  leaving those who have lived within their means and played by the rules on the hook."

"While it is an absolute outrage that executives had these bonus awards written into their contracts, it is even more astonishing that the Obama Administration knew about this before promising another $30 billion to AIG at taxpayers' expense, and that Senator Dodd, whose amendment to the stimulus bill to protect executive bonuses, is now one of the leading Democrats fighting to tax those same benefits.

"But as outrageous as all of this is, $165 million is only a drop in the bucket compared to the nearly $200 billion AIG will have received in what will be four different government bailout installments.

"The American people have long had enough of this kind of recklessness by federal policy makers.  They have had enough of Washington bureaucrats writing checks to prop up failing institutions and then handing their children the bill.  They have had enough nationalization of our financial markets in the name of rescuing them.  This next $30 billion AIG bailout is not the first and certainly won't be the last in this big-government bailout stampede.

"If there was ever a time for the Administration and Congressional Democrats to work with Republicans on a plan that would protect taxpayers, respect the principles of our free market, incentivize the investment of private capital and instill confidence in our financial markets again, it is now.  Enough is enough."

Background on Senator Dodd's amendment:
 
Inserted By Democrats And Signed Into Law By President Obama, The Executive Compensation Rules In The Stimulus Bill Specifically Exempt Bonuses In Contracts Signed Before February 11 From The New Rules. "The new rules, introduced by Sen. Chris Dodd (D-Conn.) mark one of the major concessions Obama made in the last days of wrangling over the stimulus package he is expected to sign into law on Tuesday in Denver. … Additionally, the rules in the stimulus bill apply not only to companies that receive bailout funds in the future, but also to those that have received TARP money in the past - although executive bonuses doled out in contracts signed before February 11 would not be impacted." (Carol E. Lee, "Dodd Banker Pay Cap One-Ups Obama," Politico, 2/14/09)
 
Fox Business: "Dodd Unexpectedly Added An Executive-Compensation Restriction To The Bill" That "Exempts The Very AIG Bonuses Dodd And Others Are Seeking To Tax." "Senator Chris Dodd (D-Conn.) on Monday night floated the idea of taxing American International Group bonus recipients so the government could recoup the $450 million the company is paying to employees in its financial products unit. Within hours, the idea spread to both houses of Congress, with lawmakers proposing an AIG bonus tax. While the Senate constructed the $787 billion stimulus last month, Dodd unexpectedly added an executive-compensation restriction to the bill. That amendment provides an 'exception for contractually obligated bonuses agreed on before Feb. 11, 2009,' which exempts the very AIG bonuses Dodd and others are seeking to tax. The amendment is in the final version and is law. Also, Sen. Dodd was AIG’s largest single recipient of campaign donations during the 2008 election cycle with $103,100, according to opensecrets.org." (Rich Edson, "Amid AIG Furor, Dodd Tries to Undo Bonus Protections He Put In," Fox Business, 3/17/09)
 
Stimulus Bill Text: "The prohibition required under clause (i) shall not be construed to prohibit any bonus payment required to be paid pursuant to a written employment contract executed on or before February 11, 2009, as such valid employment contracts are determined by the Secretary or the designee of the Secretary." (H.R. 1 – The American Recovery And Reinvestment Act of 2009)