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Pingree says AIG bonuses “fundamentally wrong;” Maine people “stung” by bonuses

Congresswoman Chellie Pingree led the procedural debate this morning over a bill that would “claw back” bonuses from executives at AIG and other companies.  Pingree opened the debate with harsh words for executives at AIG:

“It is fundamentally wrong to be rewarding the very same people who ran AIG while it was losing billions and billions of dollars with risky schemes that directly lead to the staggering $170 billion bailout last year.  It is a stunning example of greed and shamelessness.  And, it is a gross misuse of taxpayer funds that borders on criminal.”

Pingree also talked about the outpouring of anger she has heard from her constituents in Maine and read from some of their letters and specifically about how the AIG bonuses were particularly offensive to struggling small businesses in Maine.

“Like so many businesses around the country, a businessman in Portland, Maine recently chose to dig into his own pocket and use his own money so he wouldn’t have to lay off his employees.

“And just last week I met with the owners of a machine shop. They came to me with questions about how they could better use the money in the Recovery package to stay in business. They were not looking to line their own pockets, they were asking for help to keep people employed. 

“These are the types of people who are stung hardest by the AIG bonuses. Families and businesses in Maine and across the country are struggling to make ends meet and stay in their homes – and they are helping each other out of a shared sense of responsibility.

“Meanwhile, on Wall Street, we see executives who seem to think they live by a different set of rules and who refuse to take responsibility for the damage they have caused.”

The legislation the House is considering is H.R. 1586 which would hold AIG and other companies accountable for the bonuses they were paid to their executives.  The bill would impose a new 90 percent income tax on bonuses received by individuals from companies which have received over $5 billion from the TARP.   A vote on the bill is expected today.

Audio clips:

Fundamentally wrong to be rewarding AIG — MP3 
Pingree says it is wrong that AIG executives get bonuses when they are responsible for billions in losses.
:23     Q:… borders on criminal.

People stung the hardest — MP3
Pingree says small businesses in Maine are tightening belts and doing everything possible to avoid layoffs and are angry at the executive bonuses.
:21     Q:…damage that they have caused.

The full text of Pingree’s opening remarks, as prepared for delivery, is below.

Floor Statement for H. Res. 257

Rule on Motions to Suspend the Rules for Bonus Bill
Thursday, March 19, 2009

M. Speaker people across the country are rightly outraged by the egregious nature of the AIG bonuses.

It is unconscionable for AIG to pay out $165 million in bonuses to the same top executives who mis-managed the company to the point of failure.

It is fundamentally wrong to be rewarding the very same people who ran AIG while it was losing billions and billions of dollars with risky schemes that directly led to the staggering $170 billion bailout last year. It is a stunning example of greed and shamelessness. And, it is a gross mis-use of taxpayer funds that borders on criminal.

People in Maine and around the country are angry. I have heard from hundreds of my constituents sharing their outrage. One resident of Wells wrote “Let AIG fail! Let those greedy, blood sucking executives find out what it means to lose their life savings!!”…”You need to tell those that want our tax dollars – these are the conditions – clear and simple, and if you don’t want to use it for what we want – you will get NOTHING.”

“It has become a sad day in our history, when we have to lose our retirements and then have to give billions to those who caused the problems and then in turn they give it to themselves as bonuses”

Another Mainer wrote “I am writing to you because I am absolutely appalled that we, as citizens and taxpayers have given billions of dollars to AIG only to have that company give us all the proverbial finger and pay out $165 million dollars in bonus money to their staff.  AIG’s conduct given their own monetary losses that are in the billions of dollars is criminal.” 
The small businesses in my state of Maine are doing what businesses around the country are doing – diversifying, freezing wages, using their own resources, adopting cost saving measures – whatever it takes to stay in business and keep people in their jobs.

Like so many businesses around the country, a businessman in Portland, Maine recently chose to dig into his own pocket and use his own money so he wouldn’t have to lay off his employees.

And just last week I met with the owners of a machine shop. They came to me with questions about how they could better use the money in the Recovery package to stay in business. They were not looking to line their own pockets, they were asking for help to keep people employed.  

These are the types of people who are stung hardest by the AIG bonuses. Families and businesses in Maine and across the country are struggling to make ends meet and stay in their homes – and they are helping each other out of a shared sense of responsibility. 

Meanwhile, on Wall Street, we see executives who seem to think they live by a different set of rules and who refuse to take responsibility for the damage they have caused.

This is a perfect example of why we have, and will continue to have a commitment to transparency and oversight in government. When the House passed TARP last year, this type of abuse is exactly what the American people were afraid of. We knew there was a chance of waste, fraud or abuse. And now that this has come to light, we are here today to fix it, and continue to forge forward to fix our struggling economy.

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