Isakson Denounces AIG Bonus Payments

Repeats Call for Bipartisan Commission to Fully Investigate Near Collapse of Banking System

Mar 18, 2009

WASHINGTON - U.S. Senator and Senate candidate Johnny Isakson, R-Ga., today denounced American International Group’s (AIG) $165 million in bonus payouts and retention pay to employees on March 15. Isakson also called again for Congress to pass his legislation to create a Financial Markets Commission to investigate the near collapse of our banking system.

“Last fall, AIG received taxpayer money to help keep them and our nation – and our world’s – economy afloat. I sent a letter then to Edward Liddy, Chairman and CEO of AIG, and one to Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke, decrying AIG’s continued perks and lavish trips after receiving emergency government loans and demanding greater accountability for the group.

“Unfortunately, the management at AIG has continued its bad practices. These extravagant bonuses are yet another example of the misuse of the taxpayers’ funds and another example of AIG’s irresponsible actions. I am opposed to taxpayer funds being used for bonuses to anyone who lost money for AIG and forced AIG to come to the government to ask for taxpayer dollars. This certainly includes employees in AIG’s Financial Products unit, which made a series of bets on credit default swap contracts that drove $40.5 billion in losses last year.

“I urge my colleagues to look at the Financial Markets Commission. We can learn from the mistakes that have been made, we can put in the transparency necessary to prevent it from happening in the future and we can restore the confidence of the American people.”

On Jan. 22, Isakson introduced legislation to create a seven-member, bipartisan Financial Markets Commission. The commission is modeled after the 9-11 Commission, which thoroughly and independently investigated the failures leading up to the September 11, 2001, terrorist attacks and made sound recommendations on where we needed to improve to prevent another attack in the future.

Likewise, the Financial Markets Commission will have one year to investigate all the circumstances that led to this financial crisis. The panel will have the authority to refer to the U.S. Attorney General and state attorneys general any evidence that institutions or individuals may have violated existing laws. At the end of its investigation, the Commission will report to the President and to the Congress its recommendations for statutory or regulatory changes necessary to protect our country from a repeat of this financial collapse.

This bipartisan Commission shall include two appointees by the President and one appointee each from the Speaker of the House, the House Republican Leader, the Senate Democratic Leader, the Senate Republican Leader and the Chairman of the Board of Governors of the Federal Reserve System.