LaTourette Bill Forces Treasury, AIG to Reveal Secret Dealings

LaTourette bill forces Treasury, AIG to reveal secret dealings

U.S. Rep. Steven C. LaTourette (R-Bainbridge Township) today introduced legislation that will force Treasury Secretary Tim Geithner to provide all information regarding AIG's use of federal bailout money to Congress, including payment of $165 million in bonuses.

H.Res. 251, known as a resolution of inquiry, would force Geithner to provide all documents, records and communications regarding American International Group (AIG) within 14 days of the bill's adoption. Specifically, it demands the following information:
(1) negotiation(s) concerning the controlled break-up of AIG into at least three government-controlled divisions;
(2) negotiation(s) concerning the need for an additional $30 billion from the Troubled Asset Relief Program (TARP) funds [PL 110-343, Section 2];
(3) government communications and authorizations for payment of pre-existing bonus contracts with AIG executives.

"I'm sick of the stonewalling about who is running AIG and how these bonuses can't be undone," LaTourette said. "I don't think we just accept that the Secretary of Treasury berated AIG officials and did his best. The Secretary gave his blessing to AIG to hand out $165 million in bonuses, and is now hiding behind the skirts of contract law. There's too much secrecy and the American public deserves to know all the facts when taxpayers control 80 percent of AIG."

LaTourette said there is too much secrecy about how AIG is using more than $170 billion of bailout money it has received, and is soon slated to receive an additional $30 billion.

"I think the days of no strings attached and no questions asked are over," LaTourette said. "We need to find out if AIG is a good steward of taxpayer money, if it's more crooked than a dog's hind leg or something in between."

LaTourette introduced the resolution of inquiry with U.S. Rep. Thaddeus McCotter (R-MI). LaTourette said a resolution of inquiry can only be introduced in the House of Representatives, and it must seek factual information from the executive branch. Such a bill can be considered as soon as it is reported or discharged from Committee, and LaTourette is seeking immediate action on his bill. The non-partisan Congressional Research Service has touted the effectiveness of such measures, saying "even when a resolution of inquiry is reported adversely from a committee and tabled on the floor, it has frequently led to the release of a substantial amount of information from the Administration." If passed, the Administration must comply with the measure.

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