U.S. Rep. Charlie Dent (PA-15) today expressed outrage that American Insurance Group (AIG), which received an $85 billion line of credit from the Federal Reserve last fall and now has received more $170 billion in taxpayer assistance, has issued more than $165 million in executive bonuses.
“I find it outrageous and unacceptable that AIG, or any company receiving government funding to help right its business, would be so cavalier with the people’s money,” Congressman Dent said. “The action to bail out AIG – which is now 80 percent owned by the government – was an extraordinary measure, and AIG needs to expend those funds in an accountable manner. Issuing bonuses to executives of a company that is in serious financial straits is not acceptable.
“Part of the reason I have been leery of government bailouts of distressed companies, and voted to block the second tranche of Troubled Asset Relief Program funding, was the lack of accountability and failure to mandate significant operational changes that assure the solvency and stability of the institutions that are being subsidized by taxpayer dollars.”