Thompson Supports Legislation to Recoup AIG Bonuses

Mar 17, 2009

Washington, DC – U.S. Representative Glenn ‘GT’ Thompson, R-Howard, joined his fellow freshman Republican colleagues in announcing legislation that directs the Secretary of the Treasury to recoup, within two weeks of passage, the $165 million in bonuses paid to American International Group (AIG) executives.

Thompson joined his colleagues at an afternoon press conference to express his outrage.

“As I stated yesterday, it is an utter disgrace that the leadership of AIG found it acceptable to pay their executives over $165 million in bonuses while the company is on taxpayer funded life-support. Not to mention, that eleven of these executives, who received over $1 million each, are no longer with the company,” said Thompson, a member of the House Small Business Committee.

“The Secretary of the Treasury, who served as the chief architect of the AIG bailout last year, needs to come forward and be forthright with the American people about how this transpired. The American people deserve an honest explanation – it’s called accountability and transparency.” 

The Thompson backed legislation will do three things:

1. Direct the Department of the Treasury to implement a plan to recoup within the next two weeks the payment of AIG bonuses;

2. Require any future bonus payments, of any kind, to Troubled Asset Relief Program (TARP) recipients, to be approved in advance by the Treasury Department;

3. Any future contractual obligations entered into by TARP fund recipients to make bonus payments of any kind must be approved in advance by the Treasury.

Thompson continued, “The simple fact that we had to introduce legislation in an attempt to halt this absurd policy distracts Congress from addressing the number one issue at hand, and that’s getting this economy back on track so the folks of the Fifth District and the country can get back to work.”

Note: American taxpayers are currently on the hook for over $173 billion dollars and have an 80% equity stake in AIG.  The current CEO of AIG was appointed by the United States Government late last year.