Murphy Announces Legislation to Crack Down on Bonuses to Companies Receiving Government Rescue Funds

Press Release

Murphy Announces Legislation to Crack Down on Bonuses to Companies Receiving Government Rescue Funds

On the heels of the news that government rescued American International Group (AIG) is giving out more than $165 million in bonuses to its executives, Congressman Chris Murphy (CT-5) is introducing legislation to crack down on taxpayer funded bonuses for the very people that got us in this economic mess.

"AIG's actions are unconscionable. My bill aims to ensure that what AIG did can't happen again. We can't reward those that took unreasonable risks that have toppled our financial system by crippling credit markets for small businesses and threatening the retirement savings and livelihoods of Connecticut families," said Murphy.

Murphy's bill will force any entity that receives Troubled Assets Relief Program (TARP) funds or funds from the Federal Reserve to submit to the Secretary of the Treasury any plans to provide employee bonuses. The Secretary would then have to approve these bonuses before they could be paid.

In addition to Murphy's bill, Congress is looking at options to recoup taxpayer dollars, including recovering a substantial portion of the bonuses through special taxation legislation.

"Turning around this economic crisis is going to take the trust of the American people. AIG broke that trust, and we in Congress are exploring every avenue possible to recapture taxpayers' money. My focus has been and will continue to be keeping and creating jobs in Connecticut, helping to unlock credit for local businesses, and providing support to communities to get through this crisis without cutting services," said Murphy.

Source