October 08, 2008 02:15 pm
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Submitted by the office of Sen. Chambliss
WASHINGTON — U.S. Sen. Saxby Chambliss, R-Ga., is urging Federal Reserve Chairman Ben Bernanke to investigate the recent disclosure of inappropriate actions and expenditures by former executives of American International Group, Inc. (AIG). During a hearing Tuesday of the U.S. House Committee on Oversight and Government Reform, grossly inappropriate actions and expenditures including hotels and spa treatments were revealed. Chambliss is urging Bernanke to investigate these abuses, recoup the taxpayers’ money and punish those responsible.
A letter from Sen. Chambliss to Chairman Bernanke is below:
October 8, 2008
The Honorable Ben S. Bernanke
Chairman
The Board of Governors, Federal Reserve System
20th Street and Constitution Avenue, NW, Room 2046
Washington, DC 20551
Dear Chairman Bernanke:
I was infuriated to learn of recent grossly inappropriate actions by former executives of American International Group Inc. (AIG) from Tuesday’s hearing of the House Committee on Oversight and Government Reform.
As you know, in order to stave off the failing of this company deemed ‘too big to fail’, AIG received an $85 billion lifeline from the government -- $61 billion of which it has already tapped.
The disclosure of company expenditures reveal that the company spent more than $440,000 for a retreat at California resort -- including $200,000 for rooms and $23,000 for spa treatments -- a week after the government intervened.
This corporate misbehavior and mishandling of taxpayer dollars is reprehensible and this type of corporate action has infuriated me and the American people as we deal with this difficult economic time. I place upon the Federal Reserve the responsibility of recouping all expenditures by AIG related to this flagrantly abusive expenditure of taxpayer money and to hold accountable the executives responsible for this grossly negligent decision.
Please let me know how and when you will be investigating this matter.
Sincerely,
Saxby Chambliss
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