Representative Heinrich Cosponsors Bill to Recover AIG Bonuses

Press Release

Representative Heinrich Cosponsors Bill to Recover AIG Bonuses

Representative Martin Heinrich today cosponsored legislation to recover hundreds of millions of dollars in bonuses scheduled to be paid to American International Group (AIG) executives this year. AIG claims that as the bonuses were included in binding contracts signed last year, they are required to pay them despite the fact that they are "distasteful," as described by AIG CEO Edward Liddy. The bill, H.R. 1527, would ensure that taxpayers would recover money paid to bonuses while still allowing AIG to meet its legal obligation to pay out the bonuses.

"It is beyond outrageous that the very people who brought AIG to its knees and helped create the current economic crisis are scheduled to receive hundreds of millions of dollars in bonuses while tax dollars keep their company afloat," said Representative Heinrich. "Particularly in times of crisis, all Americans must play by the same rules. While my constituents are making sacrifices and working as hard as ever to get past this financial crisis, I have absolutely no sympathy for corporate executives already making exorbitant salaries. This bill will make right what AIG refuses to do - enough is enough."

It was announced earlier this week that AIG, which has received more than $170 billion in taxpayer bailout money from the Treasury and Federal Reserve, will give out more than $165 million in bonuses to its executives. On Tuesday, Representative Heinrich also signed a letter to AIG CEO Liddy, with other freshman Representatives, urging the return of taxpayer funded bonuses and asking that AIG put a stop to any future bonuses.

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