AIG Bonuses Need To Be Called Back

Press Release

Idaho Congressman Mike Simpson shares the widespread public outrage about the bonuses AIG issued to its employees and strongly believes that these bonuses need to be paid back to the taxpayer through effective, legal means. Simpson is a cosponsor of legislation that would remove the provision of the economic stimulus bill that exempted these bonuses from being subject to the executive pay caps that had been put into place.

"I think it is incredibly irresponsible for AIG to take $170 billion of taxpayer money and use it in such a manner," said Simpson. "They paid outrageous bonuses to the very individuals who helped create this difficult economic situation in which we find ourselves, and I strongly believe that we need to use every legal means available to recoup the taxpayers' money."

Simpson continued, "Unfortunately, the Democrats' knee-jerk reaction today is unconstitutional and will not hold up in court. This legislation will end up costing the American public millions of more dollars trying to defend it - only to be defeated. The American people want an effective, appropriate response, and we need to explore all possible ways to get the bonus money back by legal means. Let's allow this process to occur before enacting unconstitutional legislation."

Congressmen Simpson and Minnick are cosponsors of H.R. 1577, which requires the Secretary of the Treasury to pursue every legal means to stay or recoup certain incentive bonus payments and retention payments made by AIG to its executives and employees. The legislation also requires the Secretary's approval of such payments by any financial institution who receives funds under the Emergency Economic Stabilization Act of 2008.

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