Ehlers, With 89 Members of Congress, Sends Letter Demanding Repayment of Misused Taxpayer Money by AIG

Press Release

Congressman Vernon J. Ehlers, supported by a bipartisan group of 89 of his colleagues in Congress, has sent a letter to Secretary of the Treasury Henry M. Paulson and Federal Reserve Board Chairman Ben S. Bernanke expressing concern over the misuse of taxpayer money by American International Group (AIG). The federal government provided AIG with an $85 billion loan just days before the insurance company hosted a lavish company retreat at an exclusive resort.

Here is the text from the letter:

Dear Secretary Paulson and Chairman Bernanke:

We write to express strong concerns about AIG's possible misuse of federal taxpayer funds.

It has come to our attention that, after the Federal Government provided a loan of $85 billion to AIG, the AIG executives hosted a lavish $440,000 retreat at St. Regis Resort in Monarch Beach, California. Even more troubling, the day after this was revealed to the House Oversight and Government Reform Committee, the New York branch of the Federal Reserve announced it will borrow $37.8 billion in investment-grade securities in exchange for cash.

At a time when many of our constituents have serious concerns about their own financial security, we demand that you ensure that no taxpayer funds were used by AIG to host this retreat. If taxpayer funds were used, we demand that AIG repay the American people in full. It is crucial that the American people be able to trust the actions of the Federal Reserve and the Treasury.

Sincerely,

Vernon J. Ehlers
Member of Congress

Source