Pete Visclosky mad about AIG bailout. Yeah RIGHT!

[jedi]

Today I got a lovely email from my rep.

I am furious that AIG is lavishing over $165 million in “job performance” bonuses on the very executives who ran that company into the ground. The fact that AIG is using public funds to reward these individuals for contributing to the ruin of the American economy is despicable. The very fact that these executives would accept bonuses taken out of the billions of dollars AIG has received from taxpayers, who are themselves struggling to survive in our current economic crisis, is reflective of Wall Street’s callous disregard for the suffering of others and obscene narcissistic greed.

Since news of AIG’s bonus payments broke, I have been working to block them by any means that the law will allow. To that end, I joined over 90 like-minded colleagues in sending a letter to the Secretary of the Treasury, demanding that AIG be held accountable for its use of taxpayer funds and that the Administration take immediate action to prevent AIG from paying these bonuses.

I am also a strong supporter and cosponsor of H.R. 1527, a measure that would allow taxpayers to recapture the AIG bonuses. Introduced by Rep. Peters, this measure would establish a 60 percent tax surcharge on bonuses over $10,000 for all companies, including AIG, in which the U.S. government has a 79 percent or greater equity stake. H.R. 1527 would add this surtax to the normal 35 percent income tax rate paid by executives in this tax bracket so that the bonuses they receive would be taxed at 95 percent this year. Because the remaining five percent of such bonuses would likely be paid in state and local taxes, American taxpayers would fully recover any AIG bonuses paid in 2009.

H.R. 1527 was referred to the House Committee on Financial Services, where it is currently pending consideration. It is my sincere hope that this measure moves expeditiously through Committee to consideration by the full House. Additionally, I would emphasize that I opposed the use of taxpayer funds to AIG and other financial institutions in the first place. I have voted three times against the Emergency Economic Stabilization Act of 2008, more familiarly known as the Wall Street bailout, because I do not believe that it is the responsibility of the American people to bail out financial firms experiencing loss because of a lack of regulation, a lack of oversight, the cynical greed of financial executives, and bad judgment.

Further, while these funds were released over my strong objections, I have attempted to ensure that government assistance to these companies at least be made as effective and accountable as possible, so that situations like the AIG bonus debacle would be avoided. That is why on January 14, 2009, I supported and the House approved H.R. 384, the Troubled Asset Relief Program (TARP) Reform and Accountability Act of 2009, by a vote of 260 to 166. Introduced by Rep. Frank, H.R. 384 would establish new conditions and restrictions on the use of the remaining $350 billion of TARP funds. I deeply regret that despite the urgency of this issue, the Senate has not seen fit to consider this measure.

Specifically, H.R. 384 would require financial institutions that have received TARP funds to report quarterly on how these funds have affected their lending activities, and would increase restrictions on executive compensation for these companies. The measure would recover bonuses paid to executives who promise gains that later turn out to be false or inaccurate, and prohibit the practice of providing multi-million dollar golden parachutes to departing executives.

H.R. 384 would require the Department of Treasury to reach an agreement with recipients of future TARP funds on exactly how the funds will be used, including benchmarks for progress toward strengthening the soundness of the financial system and increasing the availability of credit to the economy. Additionally, the measure would expand the Financial Stability Oversight Board that monitors TARP fund use, and would allow the Board to overturn Treasury TARP policy.

Be assured that I will continue to work with President Obama and my colleagues in Congress to stop AIG’s cynical use of public funds, and to ensure that taxpayer monies are not used to line the pockets of the very Wall Street executives who precipitated our economic crisis.

Sincerely,

Pete Visclosky
Member of Congress

and this is what I wrote to him in return.

Thank you for informing me via your weekly e-newsletter of how you feel about the current AIG bonuses. You stated "I am furious that AIG is lavishing over $165 million in “job performance” bonuses on the very executives who ran that company into the ground." yet you ALSO voted for the bill that contained the loophole for this. Even after I and the majority of your constituents asked you *NOT* to vote for this bill. It appears that you either did not read the bill and all the pork that it contains or simple choose to ignore it and hoped your constituents looked the other way.

In either case you can be furious all you want but you and every other congressperson and senator are guilty for this outcome. Congress has mismanagement this entire fiasco for a long time now. Frankly I think you should resign from your position for your failure to protect your constituents interest and the American's people money.

Being that I and everyone else in LAKE county are your boss at our next election I plan on reminding everyone how you have failed us.