Politics

Action to Recoup Taxpayers Dollars from AIG and Other Companies

By Karina

Following a House Democratic leadership meeting this afternoon, Speaker Pelosi announced that House leaders have directed the Committees on Ways and Means, Financial Services, and Judiciary to present legislation this week enabling taxpayers to recoup misspent public dollars from companies, such as American International Group, that have received billions in dollars in assistance from the U.S. Treasury.

Speaker Pelosi:

We have repeatedly called on executives at corporations that have taken our financial system to the brink of collapse with irresponsible business practices to return their bonuses and other financial rewards. Most appallingly, while millions of Americans struggle through this economy, those who have received the largest measure of taxpayer assistance from the Treasury Department have shown no restraint.

Congress has already passed legislation signed into law by President Obama last month that protects taxpayers from excessive executive compensation and we will continue to pursue all effective means to curb such abuses of the public trust.

The House committees are considering several actions to recoup taxpayer dollars, such as:

Authorizing the U.S. Attorney General to recover prior and future excessive compensation payments made by companies, such as AIG, that received federal financial assistance;

Prohibiting abuse of retention bonuses by companies receiving capital infusions from Treasury; and

Recouping a substantial portion of the bonuses through special taxation legislation.

The House could consider legislation as early as this week. Tomorrow, the CEO of AIG will appear before a subcommittee of the House Financial Services Committee.

Read Speaker Pelosi’s earlier statements on AIG>>

Read previous oversight of AIG on the Gavel>>

Full post as published by The Gavel on March 17, 2009 (boomark / email).