Washington, Oct 17 -

 
Bath, NY – October 17, 2008 - U.S. Representative John R. “Randy” Kuhl, Jr. (R-Hammondsport) today joined several of his House colleagues in demanding that Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke require American International Group (AIG) to repay any taxpayer funds that were misused for AIG’s lavish $440,000 retreat.

“Americans around this country are watching their nest eggs deplete, savings investments quickly shrink, and lines of credit diminish and they are outraged that AIG took a lavish retreat on their dime,” said Kuhl. “I join them in their outrage and we must now take action to make absolutely certain that no taxpayer funds were used for their retreat. American taxpayers deserve better than to have their hard-earned money squandered on pedicures and manicures for Wall Street executives.”

Less than a week after the federal government committed $85 billion to help struggling AIG, executives for the company treated themselves to a $440,000 retreat in California. The resort tab for the AIG employees included $23,380 worth of spa treatments, $200,000 for rooms, and $150,000 for meals.

Text of the letter below

October 17, 2008
 
The Honorable Henry J. Paulson, Jr.                     The Honorable Ben S. Bernanke
Secretary of the Treasury                                          Chairman, Federal Reserve Board of Governors
1500 Pennsylvania Avenue NW                               Twentieth Street & Constitution Avenue NW
Washington, DC 20220                                             Washington, DC 20551
 
Dear Secretary Paulson and Chairman Bernanke:
 
We write to express strong concerns about AIG’s possible misuse of federal taxpayer funds.
 
It has come to our attention that, after the Federal Government provided a loan of $85 billion to AIG, the AIG executives hosted a lavish $440,000 retreat at the St. Regis Resort in Monarch Beach, California. Even more troubling, the day after this was revealed to the House Oversight and Government Reform Committee, the New York branch of the Federal Reserve announced it will borrow $37.8 billion in investment-grade securities from AIG in exchange for cash.
 
At a time when many of our constituents have serious concerns about their own financial security, we demand that you ensure that no taxpayer funds were used by AIG to host this retreat. If taxpayer funds were used, we demand that AIG repay the American people in full. It is crucial that the American people be able to trust the actions of the Federal Reserve and the Treasury.

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